1.            A very good morning to all of you. I am pleased to join you at MRO Asia 2010. Singapore is indeed honoured to host this prestigious event.

 

2.            Since 1990, Singapore’s aerospace industry has enjoyed strong growth, averaging 12% annually. We are now among Asia’s largest and most comprehensive MRO hubs, hosting over 100 companies. Our MRO cluster, which encompasses a full range of aerospace MRO capabilities including airframe maintenance, engine overhaul and repair of avionics and other components, allows us to offer a unique “one-stop” integrated solution to customers.

 

3.            Singapore has always been committed to developing and nurturing the aerospace industry.  Even in the midst of the global economic crisis last year, we continued to put in place infrastructure and resources that would pave the way for future growth.  The development of the Seletar Aerospace Park and the construction of the Rolls-Royce Campus are both on track. Eurocopter South East Asia’s new MRO, training and research facility will commence operations later this year. Industry response to the Seletar Aerospace Park has been heartening: 75% of the land made available during the Park’s first two phases of development has been taken up.  The third phase of development is set to begin in 2012, and we look forward to further collaborations with industry players in realising our vision for the Park.

 

4.            Singapore has also been developing our workforce to support the aerospace industry. Our institutes of higher learning offer a variety of aerospace-specific courses, providing graduates and skilled technical personnel to meet industry demand.  Local universities such as the Nanyang Technological University and the Singapore Institute of Management University have collaborated with renowned overseas partners like the Technical University of Munich and the Embry-Riddle Aeronautical University to provide higher-level aerospace training opportunities. The undergraduate and graduate degree programmes from such partnerships equip graduates with specialised technical and managerial skill-sets required for the MRO sector and the wider aerospace industry.

 

 

5.            Asia will be at the forefront of global air traffic growth in the years to come.  Boeing predicts that air traffic in the Asia-Pacific region will grow by nearly seven percent per year over the next two decades. This is more than two percentage points above the forecasted global average annual growth rate[1]. With our continued investments, we believe Singapore is well-poised to exploit the opportunities presented by this promising forecast.

 

6.            Even as the industry expects better times ahead, the MRO industry will need to continuously improve to keep pace with evolving industry trends.  With tougher operating conditions, some major airlines are adopting leaner operating structures by divesting non-core assets and outsourcing maintenance work. Consolidation has also given airlines greater bargaining power, which will increase pressure on their suppliers and service providers. This would make the post-crisis MRO industry more competitive.  With the long-term trend towards liberalisation of the airline industry, MRO players in Asia would likely have to compete even more aggressively and innovatively. 

7.            Given the competitive landscape, our MRO sector will have to raise productivity and pursue innovation to enhance its competitiveness, so that Singapore can stay ahead as the largest MRO hub in Asia.

 

8.            To this end, Singapore’s ability to facilitate and foster close public-private sector collaboration allows us to continuously innovate and develop new and pertinent solutions for the industry.  One example is the Aerospace Programme administered by the Agency for Science, Technology and Research (A*STAR).  The Programme provides a platform for aerospace OEMs (Original Equipment Manufacturers) and local MRO players to tap on resources from both A*STAR and Programme members, such as Boeing, EADS, SIAEC, Bombardier, Pratt & Whitney and Rolls-Royce for research and development projects.  To-date, this initiative has developed numerous innovative inspection and repair processes for the maintenance and repair of aerospace components. 

 

 

9.            As MRO companies look to increase their footprint in Asia, we aim to position Singapore as the home for MRO businesses and to attract talents looking to operate in this high-growth region.  The availability of comprehensive financial services and our excellent logistics network add to Singapore’s attractiveness for businesses tapping on the growth of aircraft leasing and rotables management in Asia.  In addition, the significant presence and close proximity of the MRO companies in Singapore provide opportunities for greater collaboration within the industry to develop and test new technologies.

 

10.       The Singapore Government has also put in place different programmes to further support the growth of the aviation sector. For example, the Civil Aviation Authority of Singapore (CAAS) launched the Aviation Development Fund in April 2010, with a budget of S$100 million over the next five years, aimed at raising overall productivity and competitiveness. This Fund will support our industry development goals through incentives aimed at enabling enterprise, ideas and people.  

 

11.         MRO Asia 2010 comes at a time when the MRO industry is riding the global economic recovery curve.  Good growth opportunities in Asia abound.  I am pleased to see this gathering of maintenance and safety experts, top airline and government officials, as well as MRO players from all over the Asia-Pacific and further afield, to share insights and exchange ideas.

 

12.         It is my pleasure to declare this event open, and to wish all of you a successful conference as well as an enjoyable stay in Singapore.

 

13.         Thank you.

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