Under the programme, retrenched workers selected by prospective employers in the aerospace industry will undergo three months of full-time training in industry recognised technical courses for the aerospace industry. Upon successful completion of the programme, participating aerospace companies will employ these workers. At least 60 workers will be deployed into the industry by the first half of 2002. To meet growing industry demand, the training capacity of the programme is expected to increase as the year proceeds. The courses for the programme are jointly developed with industry players , CAAS, and endorsed by the Academic Council of the Singapore Institute of Aerospace Engineers.

The cost of the training facilities and equipment needed for the AeRO programme is funded through MOM�s Manpower Development Assistance Scheme (MDAS). In addition, further funding support for course fees and training allowances will be provided through MOM�s and NTUC�s Skills Training and Employability Enhancement for Retrenched Workers Programme (STEER) under the Skills Redevelopment Programme (SRP). 90% of the course fees will be subsidised. For trainees above 40 years of age, the level of course fee support will be 100%. While undergoing the full time training, trainees will receive a training allowance equivalent to 75% of their last-drawn salary, capped at S$1,000 per month. Upon completion of the training, employers hiring any trainee from the AeRO programme will enjoy 50% funding support on their employee�s salary. This is capped at $1,000 per month, for three months.

At present, seven aerospace companies are participating in the AeRO programme. These include Asian Surface Technologies Pte Ltd, Eagle Services Asia Pte Ltd, GE Aviation Service Operation Pte Ltd, Pratt & Whitney Canada (SEA) Pte Ltd, Singapore Jamco Private Limited, ST Aviation Services Co. Pte Ltd (a subsidiary of Singapore Technologies Aerospace Ltd) and Windsor Airmotive Asia Pte Ltd. Together, the seven companies are committed to training and placing at least 140 workers. As Mr James Guiliano, Managing Director, Eagle Services Asia, commented: "Despite the current economic climate, the aerospace industry continues to grow and requires manpower to meet this growth. This initiative will allow companies to train and employ our workers in preparation for the upturn."

As Mr Matthias Yao, Senior Minister of State, Prime Minister�s Office and Deputy Secretary-General, NTUC, commented: "In this economic downturn, many workers have lost their jobs. We want to help our retrenched workers tide over this difficult period. The AeRO programme is a good initiative that allows our workers to learn a new skill ensuring that they continue to remain employable while moving them into a growing industry. With the increased funding support from the government, we hope to work with more employers to find jobs for workers and upgrade the skills of our workforce."

At present, the aerospace industry employs about 11,000 personnel. In 2000, the industry contributed an output of S$2.5 billion and S$1.14 billion in value-added. The industry output in the first nine months of 2001 was 23.4 % higher compared to the same nine-month period in the previous year. Industry projections reveal that an additional 1,500 skilled workers will be needed for the aerospace industry over the next three years.

As Mr Teo Ming Kian, Chairman, EDB, pointed out, "The aerospace industry's outlook is good. Despite the recent setbacks, we expect the industry to continue to register positive growth over the coming years. This would remain so for the longer term as there will be growth in demand for passenger and cargo air traffic as the world economy becomes increasingly globalised. This programme thus presents an excellent opportunity for retrenched workers from other industries to be trained and re-employed in the aerospace industry."