Mr Lim Chuan Poh, Chairman, Agency for Science, Technology and Research,

Distinguished Speakers,

Ladies and Gentlemen,

A very good morning.

 

Introduction

1.            I am pleased to join you at the fourth edition of A*STAR’s Aerospace Technology Leadership Forum.  Today, we have in attendance over 350 distinguished guests from the industry, associated partners and institutions.  This attests to the success of this forum in bringing together leaders from the aerospace community to discuss technological trends and their impact on our shared vision of the future of the aerospace industry.  

 

Singapore’s aerospace sector has grown strongly over the past decade and has created good jobs for our people.

2.            Singapore is currently the top maintenance, repair and overhaul (MRO) hub in Asia, contributing to over 10% of global output.  We are home to one of the most advanced MRO clusters in the region, with over 100 companies[1]providing an array of nose-to-tail MRO capabilities for airframes, engines, components, avionics as well as aircraft modifications and conversions.  Our eco-system includes home-grown global leaders ST Aerospace and SIA Engineering Company (SIAEC), who are among the world’s top five airframe MRO companies.

3.            More recently, we have also witnessed considerable growth in other areas such as aerospace manufacturing.  Companies have leveraged our deep expertise in precision engineering and electronics to support the production of complex aero-engine components.  For example, in a significant first, Pratt & Whitney broke ground here in 2013 for its engine hybrid aluminium fan blades and high pressure turbine disks manufacturing facility – the first outside of the United States.  In fact, I will have the privilege of opening this new facility later today.  Our congratulations to Pratt & Whitney on this milestone!

4.            Singapore’s aerospace industry has grown significantly over the past two decades[2] at a compounded annual growth rate (CAGR) of 8.6%, outperformingthe 5% CAGR of the manufacturing sector.  In 2014, the aerospace industry contributed an output of S$8.3 billion, and had a value-add (VA) of S$3.0 billion.  Employment in the sector has grown in tandem at 4% over the same period.  In 2014, the sector employed close to 20,000 workers with 90% of them being skilled jobs.

5.            This robust growth has been enabled and supported by strong and sustained commitment from the government.  A good example is the development of the 320-hectare Seletar Aerospace Park.  Launched in 2007, Seletar Aerospace Park hosts several dedicated facilities to support the manufacturing and MRO activities of Singapore-based aerospace companies.  It includes a collection of seven ready-built plug-and-play standard factories, known as the Component Manufacturing and MRO Facility (CMMF) that enable companies to manufacture and repair aerospace components.  Each unit is sized between 3,000 to 3,600 square metres, and has a column-free production area with a ceiling height of 7 metres.  Companies that have chosen to base their manufacturing activities at the Seletar Aerospace Park include Rolls Royce, which launched its Seletar Campus in 2012 to manufacture the company’s titanium wide-chord fan blade.

6.            The Aerospace Park continues to attract strong interest from industry leaders and smaller companies, and we have created a vibrant cluster of high value-added activities including MRO, manufacturing and assembly of aircraft engines and components, R&D and training.  For example, the new Airbus Asia Training Centre (AATC), due to open this quarter, will feature eight full flight simulators in addition to extensive classroom facilities.  This state-of-the-art facility will be able to offer courses for more than 10,000 trainees per year from across the Asia-Pacific region.

 

Going forward, we expect continued strong growth for the sector, with Singapore strengthening its position as the leading Asia-Pacific aerospace hub by enhancing capabilities and developing new growth clusters.

7.            Despite current uncertainties in the global economy, growing demand for air travel has spurred strong growth in the aerospace sector.  The global airline fleet is expected to double over the next 20 years, with approximately 40,000 new planes being commissioned.  Over 40% of these new planes will be replacements for current inventory[3], with the Asia-Pacific accounting for over a third of the deliveries.  However, even with new inventory, the average age of an aircraft has risen from 15 years in the mid-70s to 25 years today, and it is expected to rise even further.  Consequently, the Maintenance, Repair and Overhaul (MRO) market is poised to thrive, potentially growing from USD$60.7 billion in 2013 to reach USD$89 billion by 2023[4]. 

8.            Beyond strengthening our leadership position as Asia-Pacific’s MRO hub, we are building on current capabilities to develop Singapore into a globally recognised aerospace nation, capable of providing design, engineering, production and aftermarket services for the world’s major aircraft programmes.  We envision that Singapore will have comprehensive manufacturing and aftermarket presence from leading aerospace Original Equipment Manufacturers (OEMs), and a vibrant ecosystem with strong local aerospace enterprises supporting major aircraft programmes.

We will continue to support Singapore-based aerospace companies to better compete and grow, in both the existing stronghold of MRO services and new market segments of aero-engine development, engineering and manufacturing, as well as premium aftermarket services.

9.            In the regard, we will continue our strong support for Singapore-based aerospace companies, enabling them tonot only excel in their traditional areas of strength, but to be ready to tap on emerging opportunities.

10.          To that end, first, we will continue to leverage R&D and innovation, to push the frontiers of technology and develop complex capabilities that will help Singapore-based companies address industry needs arising from global trends.  The National Research, Innovation and Enterprise 2020 (RIE2020) Plan announced last month will see the Singapore government invest $3.3 billion in Advanced Manufacturing and Engineering (AME) public R&D capabilities over the next 5 years.  Public-private partnerships remain a key modality through which we will enable the aerospace industry to benefit from public R&D investments, and move towards the “Future of Aerospace”.

11.          For example, the A*STAR Aerospace Research Consortium brings together public researchers and leading commercial players in the aerospace industry to collaborate and develop solutions for technological challenges faced by the industry.  One important area of research is in harnessing data analytics to analyse in-flight diagnostics data and provide insights to OEMs such as Boeing, GE Aviation and Panasonic on system performance.  These insights will not only lead to better system design and maintenance regimes that extend equipment life and reduce costs; they also enable manufacturers to further differentiate their market offerings through servitisation[5] strategies.

12.          Advanced manufacturing processes, such as additive manufacturing (AM), are likewise being developed by the aerospace sector in Singapore.  There is much potential for the application of additive manufacturing in aerospace, with the promise of improvements to manufacturing lead time, reduction in inventory holdings, and new component design possibilities.  For example, remanufacturing of worn engine blades and turbines using additive manufacturing technology reduces replacement cost and lead time.  In addition to allowing manufacturers to produce parts with complex designs, components can also be produced on-demand, allowing companies to reduce downtime and inventory holdings for spare parts. 

13.          The A*STAR Advanced Remanufacturing and Technology Centre (ARTC) is collaborating with over 35 industry partners to develop technologies[6] that can be readily adopted by the aerospace industry to address the challenges of high component costs and sustainability.  Built like a “Factory of the Future” with industrial-scale machinery, ARTC provides the means for the development and test-bedding of new technologies before commercial deployment.  Together with industry leaders like Rolls Royce, SAESL and IECO[7], as well as local SME Sankei Eagle Singapore, ARTC has developed and currently test-bedding an automated masking process which can potentially achieve a productivity gain twice the original set-up.

14.          Secondly, beyond R&D and innovation, we are committed to supporting industry led co-innovation and supplier partnerships.  Under the Partnerships for Capabilities Transformation (PACT) programme, Singapore’s Economic Development Board (EDB) and SPRING work with large organisations to identify projects that upgrade the capabilitiesof their SME suppliers to meet manufacturing quality and certification requirements, or that lead to co-development and test-bedding of innovative solutions with SMEs.  SMEs play an important role in the aerospace value chain,providingservices such as the machining of precision parts, manufacturing of tooling as well as parts supply.  A strong supplier network and ecosystem here will enable OEMs to realise manufacturing, production and MRO efficiencies, to serve the regional market.  I invite more OEMs to work with EDB and SPRING to tap on the PACT programme.

15.          Third, we will continue our efforts to develop a steady pipeline of highly skilled talent for the aerospace industry by deepening synergies between our pre-employment education and industry needs.  Since 2011, as a result of the link-ups facilitated by EDB between local educational institutions and aerospace companies, Singapore Polytechnic, Nanyang Polytechnic and Republic Polytechnic have reported increases of 30 to 40 internship positions each year.  In addition, the recently inaugurated Aerospace Earn-and-Learn Programme by Temasek Polytechnic and WDA will enable graduating students from polytechnics and the Institutes of Technical Education (ITE) to gain experience and certification through job placements at aerospace companies.  This allows students to tap on structured on-the-job and institution-based training to deepen the skills and knowledge acquired.  Meanwhile, leading aerospace companies have invested in training research talent in Singapore.  Initiatives include the Rolls Royce @ NTU Corporate Lab, which has created 100 research positions since it began operations in 2013.  As part of EDB’s Industrial Postgraduate Programme, Airbus Group, Rolls-Royce, ST Aerospace and Thales have collaborated with local universities to train local postgraduate R&D talent in areas such as avionics, ground-to-air communication and equipment health monitoring.

Conclusion

16.          The long term prospects for Singapore’s aerospace industry remain bright.  The Government will partner industry to further develop our R&D, infrastructure and manpower capabilities to enable Singapore-based companies to address new challenges and tap on emerging opportunities.  Underscoring the strong growth potential of the sector, the Committee on the Future Economy (CFE) has identified aerospace as a key vertical under the Advanced Manufacturing Cluster.  The Committee will study and make recommendations to strengthen and sustain Singapore’s position at the forefront of this sector.

17.          At this forum, you will be hearing perspectives from industry leaders on how technology and innovation can further shape the “Future of Aerospace”.  I urge all of you to make full use of this platform to discover new collaborative opportunities and strengthen existing partnerships.  Together, we can realise our shared vision for the industry.  Thank you for being part of this exciting journey in growing the aerospace industry in Singapore, and I wish you a fruitful and rewarding forum.

18.          Thank you.