Mr Steven Lee, Chairman, SAAA@Singapore

Mr Glyn Hughes, Global Head, Cargo, International Air Transport Association (IATA)

Distinguished guests,

Ladies and gentlemen,

Good Morning.

1                Thank you for inviting me to the inaugural Air Cargo Day 2017.  This event brings together the key stakeholders in the air cargo community to discuss trends and opportunities, share ideas and best practices, as well as catalyse and strengthen partnerships to shape the future of our air freight and logistics sector.  Let me start by congratulating our organisers on the good turnout today from a wide range of companies and trade associations, representing the airlines, ground handlers, freight forwarders, and shippers. 

Air freight and logistics are key enablers to tapping into growing opportunities in Asia

2                The global economy has been facing structural changes, and the global macroeconomic conditions for trade may look uncertain. Nevertheless, the fundamentals for long-term growth in Asia remain strong.  Asia’s growing middle-class is expected to account for over 60% of the global middle-class by 2030,[1] and we can expect them to continue to drive demand for more sophisticated consumerism.  The rising trend of e-commerce will also lead to greater use of air freight.  Together, these trends represent tremendous growth opportunities for our logistics companies in meeting the needs of the region.

3                Against this backdrop, we launched the Industry Transformation Map (or ITM) for Logistics last year, with the aim to support companies, large and small, to become more innovative and productive, and to be prepared to capture this growth.  When implemented, our Transportation and Storage sector, which includes logistics, is expected to grow to S$8.3 billion in value added to our economy and create 2,000 new PMET jobs by 2020. 

Partnerships will enable innovation and growth

4                The Logistics ITM is an integrated effort of all stakeholders in the sector – the various companies, industry associations, government agencies, and our workers.  One of the key strategies proposed by the Committee on the Future Economy (CFE) was the forging of partnerships to enable innovation and growth for our companies.  Our trade associations and chambers (TACs), such as SAAA@Singapore, are valuable multipliers who can lead industry initiatives and reach out to their member companies to help boost their competitiveness and capture growth opportunities, both domestically and globally.  To perform these roles effectively and successfully, it is critical that our TACs stay in-tune with industry needs and business sentiments on-the-ground.

5                On this note, I am heartened to learn that SAAA@Singapore has rolled out several initiatives to uplift the capabilities of over 140 of its members through partnerships with government agencies such as SPRING Singapore and Workforce Singapore (WSG).  

6                One such example is the Air Cargo Terminal Shuttle (ACTS) service, which is the first resource pooling initiative driven by SAAA@Singapore.  Supported by SPRING under the Local Enterprise and Association Development (LEAD) programme, and with manpower training supported by WSG through the Industry Catalyst Programme, the ACTS is a shared shuttle service that consolidates freight transport for cargo launch-in activities at the Changi Airfreight Centre, and automates the booking process for the shuttles via a shared IT platform.  The initiative has lowered under-utilisation of assets during off-peak periods, and reduced long waiting times at terminals.  To date, 54 companies have signed up for ACTS, and they are benefiting from lower operating costs resulting from the improved efficiency. 

7                Another example is the Professional Conversion Programme (PCP) for Air Freight Officers and Air Freight Executives.  This was launched under the Adapt and Grow initiative earlier in July this year, to ensure that our mid-career workers can re-skill and make the transition into these new jobs.

Trade associations and chambers can collaborate to extend their reach to the business community

8                Partnership and collaboration between our local trade associations and international associations is equally important.  For instance, in July 2016, four of our local logistics trade associations – the Container Depot and Logistics Association (Singapore), the Singapore Logistics Association, the Singapore Transport Association, and SAAA@Singapore – came together and partnered SPRING and Republic Polytechnic’s Centre of Innovation for Supply Chain Management, to form the Logistics Alliance.  Relying on the combined strengths and pooled resources of its members, the Alliance aims to do more in the areas of innovation, productivity, and talent development.  The Alliance will play an important role in reinforcing Singapore’s position as a leading global logistics hub.

9                Today’s event, in fact, also demonstrates a collaboration between SAAA@Singapore and the International Air Transport Association (or IATA).  This partnership is but one instance of a local TAC working with an international counterpart to help our companies connect with global expertise, to cross-pollinate ideas, and learn from best practices.  For example, leveraging on IATA’s expertise, SAAA@Singapore is working with our companies who have yet to adopt paperless processes and data sharing, to explore IATA’s e-Freight programme, which is an end-to-end paperless process that maintains data integrity and accuracy.

10             The government will do its part to assist impactful multi-TAC collaborations under the expanded LEAD programme, and has enhanced funding support from 70% to 90%, with a budget of $100 million set aside till 2020 to support these efforts.  In the spirit of closer, seamless collaboration with our TAC and corporate partners, we are also forming Enterprise Singapore. This new combined entity will combine SPRING’s expertise in building up domestic capabilities with the strong international networks that IE Singapore has developed over the years.

Conclusion

11             In conclusion, let me once again congratulate our organisers on the inaugural edition of this event, and to everyone here this morning, I wish you a fruitful day of engagement ahead. 

12             Thank you.