Mr Tay Kok Kiang

President, ST Aerospace

Distinguished guests

Good afternoon

Good growth prospects for global aviation industry

1.               I am delighted to join you in celebrating the opening of ST Aerospace’s new hangar, here at Seletar Airport.  Today’s celebration underscores the strong performance and good prospects of the aerospace industry in Singapore. 

2.              2004 was a good year for the aviation industry.  After a difficult 2003, the global aviation industry rebounded strongly in 2004.  Passenger traffic increased by 15.3%, while air cargo traffic grew by 13.4%. Asia Pacific led the way with 20.5% and 14.4% growth in passenger and cargo traffic respectively.

3.              Singapore,  being the leading aerospace maintenance, repair and overhaul (MRO) hub in the region, profited from these developments. The aerospace industry here grew by 16% to achieve a record output of  some S$4.5 billion.  The year also saw announcements and implementation of many exciting new projects, heralded by the successful run of Asian Aerospace 2004.

4.              New hangars were built.  Some, including one belonging to ST Aerospace, started operations during the year.  Plans to site new MRO facilities, regional headquarters and R&D centres in Singapore were also announced by numerous companies. These included Rohr Aero Services-Asia's (RASA) new MRO facility, which is 2.5 times larger than its former facility, Rolls Royce's Advance Technology Centre and the International Headquarters Award for Eurocopter South East Asia. And in early January this year, we were delighted when Hamilton Sundstrand commenced the construction of their aerospace manufacturing plant in Singapore.

Singapore leveraging aerospace trend

5.               This series of positive plans and investments underline Singapore’s attractiveness as a leading global aviation hub.  Singapore is well poised to benefit from the growth of the aviation industry as we have built up a strong foundation.

6.              For one, many global aerospace leaders have set up their presence in Singapore, engaging in a wide spectrum of MRO, manufacturing and other aviation related activities.  Singapore today hosts the most comprehensive MRO facilities in the region and we are committed to strengthening this further.

7.               Second, our strong engineering capabilities have played a key role in boosting our attractiveness.  This has given companies the confidence to introduce increasingly sophisticated processes and activities, including R&D capabilities, in Singapore. 

8.               Third, we continue putting in place many enablers that will help to further grow the aerospace industry.  These include the various open skies agreements that the government is pushing ahead with major economies of the world, as well as other infrastructural projects.  

9.               ST Aerospace’s Narrow-body Hangar is a good example of critical, leading-edge infrastructure to support the growth of the MRO industry in Singapore.

Jobs to be created

10.           These exciting projects in the aerospace industry will also create good jobs for our people. According to the EDB, the aerospace projects secured last year will create some 1,200 new jobs, when the projects are fully implemented. Given the nature of the aerospace industry, most of these will be high-skilled jobs.

11.           To ensure that Singaporeans are prepared for these exciting job opportunities, EDB has been working closely with the tertiary institutions and other government agencies on several manpower training programmes.  For instance, a career transition scheme has been put in place to facilitate former Republic of Singapore Air Force (RSAF) technicians joining the aerospace industry.  In addition, Nanyang Technological University (NTU) recently launched a new four-year aerospace engineering degree programme for aspiring aerospace talents.

Conclusion

12.          Singapore has come a long way in developing its aerospace industry.  The success of our aerospace industry would not have been possible without the outstanding contributions of the key companies in this sector. ST Aerospace is one such key player, who has played a critical role in the growth of the aerospace industry here. Singapore is very proud to have a homegrown company like ST Aerospace rank amongst the leading international players in the MRO arena. Your investment in this new hangar is clear testimony of your foresight in identifying and exploiting new opportunities.

13.          I congratulate the management and staff of ST Aerospace on the auspicious opening of this new hangar, and wish you every success.