Speech by Minister Chan Chun Sing at AAIS' 15th Anniversary Gala Dinner

SPEECH BY MR CHAN CHUN SING, MINISTER FOR TRADE AND INDSUTRY, AT ASSOCIATION FOR AEROSAPCE INDUSTRY (SINGAPORE)’S 15TH ANNIVERSARY GALA DINNER ON FRIDAY, 21 SEPTEMBER 2018 AT 7.10PM AT SINGAPORE EXPO, 1 EXPO DRIVE

1          A very good evening. It is my pleasure to join you tonight. The last time I met many of you was when I was the chief of NTUC and I had visited quite a few of your production and MRO facilities. It is great to be back among friends.

2          First, I congratulate all of you not just because this is AAIS’ 15th anniversary but I also congratulate you for doing well in a very tough industry. I am under no illusion about the opportunities and challenges we face together in this industry.

3          On opportunities, all of you will know the kind of numbers we can expect to see in the coming years. The Asia Pacific market is a growing market. It is probably the fastest growing market for the aviation industry in the world. So that speaks of tremendous opportunities. 

4          But the competition is just as tough. In Singapore, we have every intention of making sure that our aviation industry is amongst the best in the world, that we will continue to strengthen our competitiveness in this very tough and challenging industry. We are going to continue to build on our fundamentals to make sure that our businesses in this industry will continue to grow and our workers in this industry will continue to enjoy good progression and salary growth.

5          So first and foremost, we will make sure that we will not compete in isolation and that everyone in this industry will compete as a system. We will ensure that we grow our linkages upstream and downstream to make sure that we provide the suite of integrated services to our customers. 

6          Second, we will make sure that in this industry, we will rely on giving our investors the assurance of the long-term sustainability and viability of their investments in Singapore. This is one of our key advantages over the years, and we have every intention of making it so. Investments in this industry are recouped over the long-term. This is why we provide a predictable business environment and continuity in our policies to make sure that we give our investors good reasons to put their investment here.

7          Third, we know that as a small country we will never be able to compete on the basis of price and size. And indeed, going forward, even as the market grows, we will not compete just on the basis of price or size, but we will compete on the basis of our deep capabilities. As we go forth in this industry, we will continue to build on our brand of trust to ensure that what we deliver goes beyond just price. What we deliver is the quality assurance we give all our customers regardless of where they come from.

8          Last but not least, the ingredient of success must be our people. Our people must continually upgrade their skills and keep pace with the demands of the new engine types and the new demands from the new generation of customers. This is easier said than done, but I am cheered to know that we have done well to integrate our institutes of higher learning (IHLS) to make sure that our students from the IHLs are industry ready. This way, whatever they learn is from the latest generation of technology because they work in partnership with our companies. So, the training is not done in isolation, but in partnership with the companies knowing the latest technological demands and the latest technological trends. This gives me the confidence that we will continue to grow from strength to strength.

9          Having said that, there are many other factors as to where the next investment will be planted. Many countries will use many other reasons to make sure that the investment stays in their particular country or to make sure that the next investment goes to them, a particular state, a particular province. It is not an easy industry as many people know how valuable this industry is to them and they will use all means to lobby and try to attract investments. So, we have our competition set out for us in Singapore as well.

10       But I believe that so long as we keep to our fundamentals, we will not just survive, but thrive. And that means we must make sure that we continue to integrate upstream and downstream and we compete as a system, not just as an individual. And we will compete on the basis that we can provide predictable polices and a stable environment for people to want to put their long-term investment here. We want to compete not on the basis of price or scale, but the quality assurance that we can give and the creativity that we can bring to bear. And last but not least, we can compete on the basis that our workers will be the best in class around the world.

11       On that note, I am confident that we will be able to grow from strength to strength with your contribution and participation. The Government will make sure that we walk this journey with you to make sure that Singapore retains its competitive edge in the aviation industry for years to come.

12       Thank you very much, I wish you all the very best. 

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