Mr Lim Hng Kiang at the Opening of ST Aerospace's PTF B757 Hangar

SPEECH BY Mr LIM HNG KIANG, MINISTER FOR trade and industry, AT THE OPENING OF ST AEROSPACE’S PTF B757 HANGAR, SELETAR AEROSPACE PARK, ON 21 FEBRUARY 2008, 10.00 AM

Mr Tan Guong Ching, Chairman, ST Aerospace,

Mr Tay Kok Khiang, President, ST Aerospace,

Ladies and gentlemen,

Good morning

I am very pleased to be here today at the opening of ST Aerospace’s new hangar for airframe maintenance and Passenger-to-Freighter conversion. This event is all the more significant as the hangar is located at the Seletar Aerospace Park

The opening of Hangar 700 brings to a total of 5 hangars that the company has in the Seletar Aerospace Park, making ST Aerospace one of the largest investors and anchor tenants of this new Park. I would like to thank ST Aerospace for its firm commitment to Singapore’s vision for Seletar.

Aircraft Conversion A New Niche for Singapore

ST Aerospace’s investment in Hangar 700 is testament to Singapore’s strong engineering capabilities.ST Aerospace has an established track record of aircraft modifications from the Boeing 747 to the MD-11 aircraft and most recently the 767-300.I understand that ST Aerospace also plans to introduce conversion lines for the Boeing 757-200 at this facility in the near future.

The conversion of an aircraft is akin to disassembling and reassembling an aircraft. It involves complex design and engineering work, encompassing structural design and analysis, mechanical systems design, electrical installation design and stringent testing and certification processes. This whole complex process is undertaken by ST Aerospace’s local team and it attests to the wealth of engineering and design skills available in Singapore. The fact that ST Aerospace was able to win a contract with FedEx for the conversion of over 80 aircraft is further recognition of these abilities.

Singapore now has capabilities for five out of the top six aircraft conversion programmes today. Considering that each conversion of a Boeing 757, for instance, costs around US$5.5 million, aircraft conversion is a significant and growing segment for Singapore’s aerospace sector. Combined with the associated spin-offs in maintenance, repair and overhaul work, it will fuel further growth for the industry.

Fuelling Growth with Seletar Aerospace Park

We firmly believe in the future of the aerospace industry in Singapore and this is the reason why we decided to develop the Seletar Aerospace Park. In fact, re-developing the Park is almost like an aircraft conversion where we are “converting” Seletar to meet the evolving needs of the industry.

We had previously announced the extension of the runway and the introduction of instrument landing systems at Seletar. In addition to these upgrades, we have also decided to expand the space available for aircraft parking and add more parallel taxiways for easy movement of aircraft. All these significant investments in Seletar are a firm indication of our commitment to grow the aerospace industry in Singapore.

I am pleased that our commitment to develop the industry here is matched by the investments made by world-class aerospace companies such as ST Aerospace, Pratt & Whitney and Rolls-Royce, who have established their new facilities in the Park.

Business Aviation Takes Flight in Asia

When completed, the Seletar Aerospace Park will anchor Singapore firmly as a leading aerospace hub. Furthermore, we envision Seletar Airport to become a premier business aviation airport in the region, providing us with an ideal platform to capture opportunities from the growing business aviation market. The growing wealth in this region, coupled with the upcoming Integrated Resorts and the F1 Grand Prix developments in Singapore, will catalyze the growth of business aviation in Singapore.

Already, Singapore is known amongst the business aviation community in Asia for our openness to business. Landing approvals are easily obtained and special facilities at both Changi and Seletar Airports serve the needs of those traveling on private jets today. We also have a comprehensive cluster of service providers taking care of business jet needs – from aircraft maintenance to avionics upgrades and provision of spare parts.

We want to continue to upgrade both the hardware and software aspects of Seletar Airport. We are doing this by strengthening the support services here, to ensure that Singapore remains the most comprehensive location in Asia for the maintenance, completion and retrofit of private jets. We also understand that a good business aviation airport should ensure that passengers are well taken care of. To achieve this, the Civil Aviation Authority of Singapore will shortly be launching its new plan for fixed-base operations at Seletar, including the implementation of service standards.

Conclusion

ST Aerospace is a key player in Singapore’s aerospace industry. Your vision and foresight, as demonstrated again by this investment at Seletar, has been a major factor in your global success. We see a dynamic time ahead for both Seletar Aerospace Park and the business aviation sector in Singapore. We have no doubt that, with the completion of the Park development, Singapore’s aerospace industry will soar to greater heights; and we are glad to have industry stalwarts such as ST Aerospace on board for this exciting journey. Thank you.