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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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