DPM Teo Chee Hean at the Official Opening Ceremony Of Singapore Airshow 2016 on 15 February 2016

Flying High in Aviation and Aerospace

Prime Minister, Deputy Prime Minister, and Ministers
Distinguished Guests
Ladies and Gentlemen

Introduction

A very good evening to everyone, at the opening of the 5th edition of the Singapore Airshow. To our friends from overseas, a very warm welcome to Singapore. 

The Singapore Airshow is Asia’s largest airshow, and among the top three airshows in the world together with Paris and Farnborough. It is also one of the most important aerospace and defence exhibitions in the world.

This year, we have over 1,000 companies including more than 60 of the top 100 aerospace companies in the world participating. This demonstrates the importance of Singapore Airshow as a global meeting point, for commercial, government and military delegations to network, exchange views, and explore business and partnership opportunities.

Asia – Driving the Growth in Aviation

In spite of the moderate economic outlook in 2016, aviation remains a bright spot, given the growing demand for air travel, with the popularity of low cost carriers, supported by lower fuel prices. Firing up the aviation engine will also help catalyse other economic engines. It is therefore timely to see how we can build more and stronger linkages across countries and regions, which will in turn drive international trade and economic growth.

The long-term growth prospects of the global aerospace industry also remain positive. With a combined record order backlog of more than 12,500 aircraft from Airbus and Boeing,  the industry is seeing a period of high growth. And this growth is expected to continue because of strong demand for air travel globally. 

Asia is already one of the biggest markets in the world for air travel, with one billion passengers travelling to, from, or within the region each year. With traffic projected to grow 6% annually, Asia will become the largest travel market in the world within the next 2 decades.  Asia will also account for more than a third of new aircraft deliveries in the next two decades, and will have the largest air fleet in the world by 2034.     

Singapore is positioning itself to be future-ready, in order to capture opportunities in the area of aviation and aerospace. 

Singapore – An Aviation Hub of the Future

First, an aviation hub ready for the future. Aviation is a key sector for Singapore and an enabler for business and tourism. With passenger traffic at Changi Airport expected to grow between 3% and 4% per year over the next two decades, Singapore continues to develop our infrastructure to meet our future needs as a leading aviation hub. Terminal 4 and Jewel Changi Airport are on track for opening in 2017 and 2019 respectively. Detailed planning for further expansion has also begun. By the second half of the 2020s, Changi East will house a third runway, a fifth passenger terminal which will bring total capacity to 135 million passengers per annum, and an expanded industrial and logistics zone.

The Civil Aviation Authority of Singapore (CAAS) and Changi Airport Group (CAG) are also adopting new technology and redesigning processes to raise airport productivity and improve the quality of airport jobs. For example, CAAS is crowdsourcing ideas to automate baggage handling for narrow body aircraft, which is highly manual and labour intensive today. Five shortlisted teams are developing their prototypes, the most successful of which may be deployed in Changi Airport. 

Singapore – An Aerospace Industry of the Future

Second, an aerospace industry ready for the future. Today, Singapore is home to 130 aerospace companies – one of the largest and most diverse concentrations of aerospace companies in Asia, and an important node in the global aerospace community. In 2014, the industry achieved an output of S$8.3 billion, and employed close to 20,000 workers. 

As aerospace companies look to Asia for market growth, they will also grow the scale and sophistication of their activities in this part of the world. Singapore continues to be a trusted location, and partner, for companies to locate high value manufacturing, aftermarket services, and innovation-driven engineering activities to serve the region and beyond.

In December 2015, Rolls-Royce announced plans to undertake pre-production and final assembly of its latest Trent 7000 engines in Singapore. The opening of Pratt & Whitney’s first manufacturing facility earlier today as well as continued investments from companies like UTC Aerospace Systems and local companies JEP Precision and Wah Son Engineering demonstrate the steady growth of aerospace manufacturing activities here.

In the aftermarket, GE Aviation will invest close to S$110 million in new-generation MRO capabilities at its Singapore facilities, and establish a new advanced technologies centre for R&D on repair applications. Local player ST Aerospace also opened its VIP Aircraft Interiors Centre last week, which leverages its strong engineering capabilities to create a new line of business in the completion and refurbishment of cabin interiors for wide- and narrow-body VIP aircraft.

In trunwayhe last two years, Singapore has also established itself as the home to many service engineering and fleet management teams for the region. We are delighted that Airbus, Boeing, Pratt & Whitney and Rolls-Royce have chosen to anchor their sophisticated aftermarket services in Singapore, so that they can tap on Singapore’s capabilities to help them grow in the Asian market. 

And Singapore is constantly building new capabilities to prepare ourselves to do better in the future. For example, aerospace companies will increasingly deploy data analytics to conduct real-time asset monitoring, operational planning, predictive maintenance as well as supply chain and production optimization. To support this industry demand, Singapore will train 2,500 analytics professionals by 2017.

With companies keen to leverage additive manufacturing in both manufacturing and repair, we have also invested in additive manufacturing research centres. The National Additive Manufacturing Innovation Cluster (NAMIC) aims to scale the use of 3D printing by translating research knowledge into commercial applications.

Singapore – A Competitive Workforce of the Future 

Third, a competitive workforce ready for the future. Singapore will also continue to ensure a healthy pipeline of good manpower that is geared for the future. Aviation and aerospace companies tell us that our high quality workforce is one of the key reasons why they choose to invest in Singapore. These industries also offer rewarding and meaningful careers for Singaporeans.

To ensure that our workforce is industry relevant, academic institutions, such as Temasek Polytechnic, have invested in dedicated aerospace facilities to train their students. Students also benefit from the close partnerships between companies and academic institutions to expose them to industry needs and networks. For example, 6 students from Singapore Polytechnic worked with Boeing to solve common problems faced by cabin crew. At the end of their 5-week work programme, Boeing picked and patented 3 ideas by the students.

We also want to help Singaporeans deepen their skills and identify long-term career progression pathways in the aerospace and aviation sector. Under the SkillsFuture Earn and Learn Programme, fresh graduates from polytechnics and the Institute of Technical Education gain experience and certification through job placements with companies. The first 2 batches of aerospace engineering trainees have recently completed their training with Rolls-Royce Singapore. We hope more employers will embark on such programmes which will attract more Singaporeans to take up the many exciting job opportunities in the aviation and aerospace industries.

Singapore Airshow – Bringing together people and technologies 

Besides industry players, the Singapore Airshow is also an important platform for the defence community. As in previous editions, Singapore Airshow 2016 will bring together the latest advances in defence technology, with many of the latest military aircraft on display. 

No airshow is complete without the aerial displays. This year, visitors can look forward to displays by the US Air Force’s F-16 fighters and C-17 Globemaster. We also welcome the Black Eagles from the Republic of Korea Air Force, SU-30MKM from the Royal Malaysia Air Force, and the Dassault Rafale from the French Air Force. Our very own RSAF will also be featuring an integrated aerial display comprising the F-15SG and AH-64 Apache attack helicopter.

Conclusion

The Singapore Airshow is just one example of Singapore’s commitment to the aviation and aerospace industries. We will continue to invest in infrastructure, industry partnerships, and a high quality workforce, to build an aviation hub ready for the future, an aerospace industry ready for the future, and a competitive workforce ready for the future.

On behalf of the Singapore Government, let me thank all our partners for your continual support for the Singapore Airshow. 

I declare the Singapore Airshow 2016 open, and wish all participants and visitors a successful event.