SPEECH BY MRS. LIM HWEE HUA,
MINISTER, PRIME MINISTER’S OFFICE
AND
SECOND MINISTER FOR FINANCE & TRANSPORT

OPENING OF SIA ENGINEERING COMPANY A380 HANGAR

WEDNESDAY 3 FEBRUARY 2010, AIRLINE HOUSE

 

 

Mr Stephen Lee,

Chairman of SIA Engineering

 

Mr William Tan,

CEO of SIA Engineering

 

Distinguished Guests

 

Ladies and Gentlemen

 

 

 

Introduction

 

1.                 Good morning. It gives me great pleasure to join you today for the opening ceremony of SIA Engineering's A380 Hangar.  Today’s opening is significant and marks an important milestone in SIA Engineering’s history.  With this new hangar, SIA Engineering will be the first Maintenance, Repair and Overhaul or MRO company in the world to offer commercial maintenance services for the Airbus A380 aircraft.  We are certainly proud to be host to this new facility here at Changi. 

 

Outlook for Aerospace Industry

 

2.                  The aerospace industry plays an important role in Singapore’s economy and is one of the fastest growing industries here.  Since the 1990s, the MRO industry has registered an impressive compounded annual growth rate of approximately 12%. Today, the Singapore aerospace industry employs over 18,000 employees, 80% of whom are Singaporeans and Permanent Residents.  

 

3.                 There are reasons to be upbeat about the medium to long term growth prospects of the aerospace industry.  The next 20 years will see sustained large travel volumes arising from the greater demand on new flight routes to emerging markets and increased passenger loads for hub-to-hub connections. 

 

4.                 Boeing has projected that the passenger traffic for the Asia-Pacific region will grow at 6% per annum for the next 20 years, on the back of continued expansion in China, India and other ASEAN countries.  Consistent with this surge in demand, it is estimated that about 8,700 new airplanes would be delivered to the region by 2028.  Commensurate with this growth in aircraft population will be a rise in demand for aerospace and MRO services in the region.

 

singapore is committed to support aerospace developments

 

5.                 As a gateway to Asia, Singapore is well-positioned to ride this wave of expansion.  We are among Asia’s largest and most comprehensive MRO hubs, and host to over 100 companies providing comprehensive capabilities, which include repair and overhaul services for airframes, engines, components, structures, and avionics, hence allowing us to offer a unique “one-stop” integrated solution for customers.

 

6.                 Indeed, through hard work, Singapore has achieved a leadership position in MRO, accounting for one-quarter of the Asia Pacific market. Our value proposition as a regional aerospace hub has been founded on Singapore’s comprehensive infrastructure, strong connectivity and skilled workforce.  To ensure that we do not lose this position, Singapore will also continue to adapt and support pro-business policies to facilitate further growth of MRO companies in Singapore.  For instance, CAAS has recently been re-organised and has taken on the role of being the champion of the aviation industry.  In this role, CAAS seeks to develop industry capabilities, promote innovation as well as support manpower development. Just recently, CAAS announced a $100 million Aviation Development Fund which will be used to promote the growth and development of the aviation industry.  . 

 

7.                 Moving forward, CAAS will continue to work closely with both agencies like EDB, JTC and IE Singapore and industry players to identify suitable opportunities to develop new market segments.  We will continue to ensure the vibrancy of our aerospace ecosystem in order to provide total and integrated solutions to better serve the industry, as they develop and grow their activities in Asia

 

SIA Engineering’s growth will strengthen Singapore’s MRO leadership

 

8.                 Within this context, today’s opening of SIA Engineering’s A380 Hangar is significant and important to Singapore.  With this new hangar, SIA Engineering will be able to handle the new generation of aircraft like the Airbus A380 and will add a new level of sophistication to Singapore’s MRO capabilities.  This is in line with Singapore’s strategy of developing broad and deep MRO capabilities that will allow us to better serve the global market.

 

9.                 This hangar expansion will certainly enhance Singapore’s status as a leading aerospace MRO hub and further demonstrate SIA Engineering’s resolve to develop its Singapore maintenance centre into a global MRO Centre of Excellence.  SIA Engineering’s investment will further strengthen Singapore’s position as a “one-stop shop” for sophisticated aerospace MRO services, offering the complete MRO value chain of services to the regional and global markets.  I would like to thank SIA Engineering for making Singapore your valued partner.

 

conclusion

 

10.             In closing, I would like to extend once again my congratulations to SIA Engineering on the completion of its A380 Hangar, and for its achievement as being the first MRO company in the world to maintain the Airbus A380.

 

11.             Thank you.

 

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