SPEECH BY MR S ISWARAN, MINISTER FOR TRADE AND INDUSTRY (INDUSTRY), AT THE GE AVIATION AND SIA ENGINEERING COMPANY ENGINE OVERHAUL JOINT VENTURE SIGNING CEREMONY, ON TUESDAY, 6 FEBRUARY 2018, 9.30AM, AT SHANGRI-LA HOTEL
Distinguished Guests,
Ladies and Gentlemen,
Good morning.
Introduction
1. It is my pleasure to join you this morning to witness the signing of a new joint venture between GE Aviation and SIA Engineering Company (SIAEC).
2. Singapore has been home for more than 30 years to the largest overseas facility for GE Aviation, a world-leading provider of aircraft engines and components. Our home-grown enterprise, SIAEC, is renowned in the global aftermarket service sector for its comprehensive suite of capabilities in airframe, engine and component Maintenance, Repair and Overhaul (MRO).
3. This partnership marries the complementary strengths of SIAEC and GE Aviation to meet increasingly sophisticated MRO requirements of the next-generation aircraft engines. GE Aviation’s strength in industrial design, engineering and innovation, combined with SIAEC’s extensive know-how and reliable delivery of MRO services will help create a greater competitive edge in the global aftermarket services space.
Enhance Singapore’s position as leading MRO hub in Asia
4. Despite our small size, Singapore has one of the most advanced MRO clusters in the world, providing an array of “nose to tail” MRO capabilities, and making up 10% of global MRO output. The new joint venture with GE is testament to the industry’s confidence in Singapore’s aerospace ecosystem, our strong talent pool in this sector, and excellent connectivity to the region and rest of the world.
5. SIAEC’s partnership with GE Aviation will enhance Singapore’s position as a leading MRO hub in Asia. With the joint venture, Singapore will become the only place in the Asia-Pacific with significant engine overhaul capabilities from the top three original equipment manufacturers (OEMs) in commercial aviation. Singapore will also be the only place in the region with the capability to service the new-generation GE9X engine, the sole engine option for the Boeing 777X aircraft slated to enter into service in 2020.
Pursue operational excellence and adopt new technologies
6. The Asia-Pacific region is expected to become the world’s largest aviation market, and account for almost 40% of the global fleet in 20 years’ time. The Singapore aerospace industry will be well-positioned to tap on this opportunity to sustain our growth as long as we do our part to transform the industry. As I emphasised at the launch of the Aerospace Industry Transformation Map (ITM) last month, we will need to pursue operational excellence through the use of automation, robotics, and process improvements to increase productivity, and also adopt the use of emerging technologies, including Industrial Internet-of-things (IIoT), data analytics and asset optimisation.
7. I am heartened to learn that the joint venture will be doing exactly this. The engine overhaul facility will use robotics to enhance process quality and reduce turnaround time. Digitalisation and data analytics will be employed to enhance productivity through predictive machine maintenance, real-time condition-based monitoring, as well as the use of digital tools in the planning and scheduling of engine MRO work.
Equip Singaporeans with skills for better jobs
8. The joint venture will not only improve industry competitiveness and deepen our capability in the aerospace MRO sector, but also help to nurture a future-ready workforce. As leading players of the aerospace industry, GE Aviation and SIAEC have led by example in supporting government initiatives to upskill and reskill mid-career Singaporeans. I am happy to hear that both companies have employed and reskilled mid-career hires from other industries through Workforce Singapore’s Professional Conversion Programmes.
9. I am confident that the joint venture will help our technicians and engineers deepen their skillsets in advanced manufacturing, automation, and digitalisation, to prepare them to take on better jobs in the future, and support the long-term growth of the aerospace sector.
Conclusion
10. In closing, I would like to once again congratulate SIAEC and GE Aviation on this new joint venture, and I wish both companies every success in years to come. Thank you.