Mr S Iswaran at the Official Opening of the Business Aviation Complex, 23 Nov 2011

SPEECH BY MR S ISWARAN, MINISTER, PRIME MINISTER’S OFFICE AND SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY AT THE OFFICIAL OPENING OF THE BUSINESS AVIATION COMPLEXON WEDNESDAY, 23 NOVEMBER 2011, 0945 HRS AT THE SELETAR AEROSPACE PARK

Mr Cedric Foo, Chairman of JTC Corporation,

Distinguished guests, Ladies and gentlemen,

Good morning.

Introduction

It gives me great pleasure to join you today for the official opening of the Business Aviation Complex.

The Aerospace Industry is a Key Growth Area for Singapore

The aerospace industry is an important part of our economy. Over the past two decades, it has grown by an average of about 12 per cent per annum to achieve a record output of S$7.2 billion in 2010. Today, we hold a strong leadership position in Maintenance, Repair and Overhaul (MRO) activities, accounting for about a quarter of Asia-Pacific’s MRO market share.

The aerospace industry also provides attractive and well-paying jobs for Singaporeans. The industry employed 18,000 people with about 80 per cent of them being locals, while the average pay per worker for the aerospace industry is more than S$60,000 per annum.[1]

To groom the next generation of talent, our post-secondary education institutions have introduced specialised training courses. For example, all five of our polytechnics offer Diploma courses on aerospace electronics, aerospace engineering or aerospace technology for their students. Recently, Nanyang Polytechnic also launched a part-time Diploma course on aerospace manufacturing. These courses were developed in close consultation with industry players, to ensure that students pick up skills that are relevant to the industry. The courses are also among the most popular engineering courses in our polytechnics. The Government will continue to support the growth of the aerospace industry, as part of our on-going efforts to restructure our economy towards higher value-added industries, and to increase wages for Singaporeans.

Looking ahead, we are optimistic about the industry’s long-term growth prospects. The long-term outlook for the global aviation sector is promising, even though there are some headwinds from high oil prices and uncertain global economic conditions. Air traffic growth for the Asia-Pacific is likely to stay ahead of the global average. This will have a positive impact on Asia-Pacific’s aerospace industry. In fact, Boeing projected this year that airlines will acquire 33,500 new airplanes worth US$4 trillion over the next 20 years. One-third of this demand will come from the Asia-Pacific.

Supporting this Key Growth Area: The Seletar Aerospace Park

The Seletar Aerospace Park plays a key role in supporting our burgeoning aerospace industry. It hosts a wide range of aerospace-related activities, including MRO, manufacturing, business and general aviation activities, training, and R&D. The creation of this integrated aerospace community allows companies to enjoy greater efficiencies in their operations and increases the scope for new industry collaborations. When fully developed, the 300 ha park is expected to contribute more than S$3 billion to our economy, and employ 10,000 workers.

I am happy to note that some of the leading names in the aerospace industry have decided to set up operations here in the SAP. These include Rolls-Royce, Eurocopter, Bell Helicopter, Cessna, ST Aerospace, Hawker Pacific and Fokker Services. This attests to Singapore’s growing stature as Asia’s aerospace hub.

Growth Opportunities in Business Aviation

Commendable work has been done in developing Seletar Aerospace Park, and significant progress has been made in growing our aerospace industry. And, we must continue to keep a close watch on global and regional trends in both the aerospace industry and the aviation sector to identify opportunities for growth. One area with clear potential is business aviation, which is air travel by corporations or individuals in corporate jets or private planes.

Business aviation facilitates travel to many more destinations than can be served by scheduled commercial flights. It also allows travellers to avoid congestion at major international airports. The convenience, flexibility and privacy offered by business aviation have led to a rise in business aviation for corporate leaders and high net worth individuals around the world. In recent years, business aviation in Asia, in particular, has gained momentum. This has been fuelled by an increase in economic activity and the attendant growth in the number of high net worth individuals. Singapore, as a vibrant business hub located in the centre of the Asia-Pacific region, is well-positioned to tap and support the growth of business aviation.

Seizing Growth Opportunities in Business Aviation: The Seletar Airport and SAP value Proposition

The Government is therefore ramping up its efforts to capitalise on this new growth opportunity. This can be seen in Seletar Airport’s makeover to enhance its status as a modern airport of choice, and the development of infrastructure in the Seletar Aerospace Park for the supporting activities. Through these efforts, we hope to develop Seletar Airport and the SAP into a regional business aviation hub. The sound infrastructure and high safety and service standards of Seletar Airport, coupled with the supporting MRO activities in the SAP offer a compelling value proposition to corporate executives and high net worth individuals. The Business Aviation Complex, which houses companies that specifically support the business aviation sector, forms an important piece of this value proposition.

Conclusion

In conclusion, I would like to wish all our partners much success in your businesses. With your continued confidence in Singapore and the Government’s commitment to grow the industry, I am certain that we can look forward to a thriving aerospace sector and a vibrant regional business aviation hub in Singapore.

[1]

Based on 2009 figures. Locals refer to Singapore citizens and PRs.