Opening Address by Lee Yi Shyan, Senior Minister of State, Ministry of Trade and Industry and Ministry of National Development, at the Aerospace Exchange 2013 Opening Ceremony held at Singapore Expo Hall 6 on Wednesday, 27 February 2013, 920hrs
Mr Charles Chong, President, AAIS
Distinguished guests
Ladies and Gentlemen,
Good morning
Introduction
Thank you for inviting me to join you at the opening of AeroSpace eXchange 2013. Let me also extend my warm welcome to all overseas exhibitors and visitors.
Thank you for inviting me to join you at the opening of AeroSpace eXchange 2013. Let me also extend my warm welcome to all overseas exhibitors and visitors.
Steady Growth
The Singapore aerospace industry contributes significantly to our local economy. In 2012, the sector achieved a total output of $8.7 billion[1] – more than double the output a decade ago.
Since 1990, the industry has grown at a Compounded Annual Growth Rate (CAGR) of over 10 per cent[2]. Singapore is now a sophisticated Maintenance, Repair and Overhaul (MRO) Hub in Asia. The sector accounts for close to 20,000[3] well paying jobs. The majority of these jobs are performed by skilled workers in areas such as Aerospace Manufacturing, Repair and Overhaul, testing as well as Training, Research and Development.
Our vision is for Singapore to be an aerospace hub with a comprehensive range of capabilities. To help us achieve this, we are developing the Seletar Aerospace Park to meet the growing and diverse needs of the aerospace industry. Leading international aerospace companies such as Rolls-Royce, Jet Aviation, Eurocopter, Fokker Services Asia, Hawker Pacific Asia and Execujet have found a home in the SAP. Many of our home-grown SMEs such as Wah Son Engineering, Tri-Wing Aviation Resources, and Air Transport Training College are establishing themselves there too.
Human Resource development
According to the 2010 Singapore Aerospace Manpower Landscape Study, the industry will require more than 6,300 new direct employees by 2015. The growth of the industry will create many exciting job opportunities for young Singaporeans and mature workers alike.
Currently, National University of Singapore (NUS), Nanyang Technological University (NTU) and Singapore Institute of Technology (SIT), as well as our local polytechnics, offer specialised courses in aerospace. They will supply a pipeline of engineers and associate engineers for the industry.
In addition, a new 10.6 hectares ITE Campus, slated to open by the end of this year, will house a Boeing 737 aircraft to offer aerospace students practical and hands-on training on aircraft maintenance. The school, which will offer many training places, will provide our aircraft technicians with realistic and relevant training.
For our existing workforce, the Workforce Development Agency has introduced new courses for aerospace workers to upgrade their skills through the Singapore Workforce Skills Qualifications (WSQ) programme. With WSQ, our workers can up-skill themselves as technology changes and stay relevant.
Productivity Improvement
Our aerospace industry has always been amongst the most productive industrial sectors in Singapore. Faced with fierce international competition, our companies are investing in productivity initiatives to stay ahead of the game.
For example, ST Aerospace has completed more than 400 Kaizen programs to date, generating more than S$20 million worth of savings for the company. Singapore Aero Engine Services Pte Ltd (SAESL), a joint venture between Rolls-Royce and SIAEC, reduced its engine overhaul turn-around time by 25 percent through its investment in automation. The company now boasts one of the fastest turn-around times in the global Rolls-Royce MRO network.
Looking ahead, productivity and innovation must continue to be key drivers of our growth. To help firms overcome manpower challenges, the newly introduced Budget 2013 contains a number of programs such as the Wage Credit Scheme, PIC and PIC Bonus, enhanced PACT and Corporate Income Tax rebate, to help our companies transit to a productivity-driven business model.
Besides, EDB, SPRING and other government agencies have also been working closely with industry associations to map out industry-specific productivity action plans to help the industry restructure and enhance their competitiveness. A S$2bil National Productivity Fund has been set aside by the government to help industries make the switch to higher productivity.
Conclusion
In closing, let me commend AAIS for playing a leading role in facilitating collaborations and dialogues between its members, government agencies and various stakeholders. I would like to further challenge AAIS to help draw up a blueprint for its members to transform itself in the next 10 years, making full use of all the productivity programs and funding available for the industry.
My heartiest congratulations on your 10th Anniversary. I wish you greater success in the years to come. With that, I declare Aerospace Exchange 2013 open.