Speech by Senior Minister of State for Defence, Mr Heng Chee How, for The Singapore Aerospace Technology and Engineering Conference at Suntec Singapore Convention and Exhibition Centre on 16 February 2022

Distinguished Guests,

Friends, Ladies and Gentlemen,

I bid you a very good morning from Suntec Singapore Convention and Exhibition Centre,

To all of you who are present in this room,

Friends and Colleagues, from near and afar, as well as Friends and Colleagues online

Welcome to the Singapore Aerospace Technology and Engineering Conference (SATEC) 2022. I would like to extend my appreciation to the Republic of Singapore Air Force (RSAF) and the Singapore Institute of Aerospace Engineers, for organising this year's conference and for inviting me.

INTRODUCTION

SATEC has evolved over the years to become a very reputable platform for the defence community, industry and academia, both from Singapore and around the world, to come together to share and discuss key developments in aerospace technology and engineering. This year's conference is being held in a hybrid format for the first time, with over 1,000 participants attending together, physically as well as online. And I believe this is the highest number ever in totality. I am also delighted to note that this is the 10th edition of the conference, and is a good testament to the success and relevance of SATEC over the years.

Air connectivity remains an essential part of our globalised world. Most of our foreign guests who are present today, would have flown in. Flying has brought us closer together, facilitated cross-border trade and investments, and unlocked new economic opportunities for markets around the world. Even during the on-going COVID-19 pandemic, air connectivity has been invaluable in keeping our international supply chains open for the distribution and conveyance of essential goods, critical medical supplies and vaccines.

Since the first powered flight by the Wright Brothers back in 1903, advancements in aerospace technology have propelled the growth of the aviation sector and facilitated improvements to air connectivity, thereby ensuring that our airspace is safer and aviation-related operations are made more efficient. The aerospace sector has also grown to become a critical part of the global economy and an important part of the economy here in Singapore.

The accelerating pace of technological developments, as part of the 4th Industrial Revolution (4IR), is bringing forth new opportunities for the aerospace industry. For example, data analytics and artificial intelligence systems can be used to monitor fleet health and predict aircraft maintenance requirements. Robotics technology and the Internet of Things can be adopted to improve work efficiencies and safety in aircraft Maintenance, Repair and Overhaul (MRO) operations. Moving forward, we can expect that the aerospace sector's adoption and integration of 4IR technologies will further transform the industry and fuel its growth.

CHALLENGES FACING THE AEROSPACE INDUSTRY

While the growth potential for the aerospace industry seems generally positive, there are of course challenges which the industry must address. This morning, allow me to briefly touch on three challenges just to seed the discussions later.

Challenge 1: Strengthen Resilience Against Future Disruptions

First, COVID-19's impact on air travel has had a knock-on effect on the commercial aerospace industry. The reduced demand for aircraft, spare parts and MRO services has affected the revenue streams of aerospace companies and amplified their concerns with regard to cash flow and liquidity because of the capital-intensive nature of the business. The pandemic has also presented significant challenges to global supply chains, resulting in supply chain disruptions that are impacting operations and exacerbating cost pressures on aerospace companies.

But on a more encouraging note, the commercial aviation sector is showing signs of recovery as the world gradually adapts to coping with, perhaps living with, a COVID in a more endemic fashion. As revenue streams in the aerospace sector progressively restored and global supply chains recover, businesses must consider how they can accelerate efforts to enhance their operational efficiencies and drive down costs through increased technology adoption, as well as to better position themselves against future disruptions.

Challenge 2: Enable Sustainable Growth

The second challenge facing the aerospace sector is that of climate change. While fighting climate change is a global effort that involves everyone in all industries, it is made more significant for the aerospace industry, given that the global aviation industry produces around two percent of all human-induced carbon dioxide emissions. There are therefore urgent environmental pressures to accelerate decarbonisation efforts within the sector, and ensure to that future growth is achieved in an environmentally sustainable manner. And I think we all heard from Timothy earlier that you know the number of trees that would have to be planted to offset what has been put into the air. Planting trees must be part of the solution, but it cannot be the only one and all of us have to put our heads together to see what other ways technology and by other arrangements we can do even better in this area.

The need to invest in environmentally sustainable solutions may, for some, seem to be at odds with our desire to drive down costs. However, I would like to suggest that such efforts can potentially be complementary. A case in point can be seen in today's modern jet aircraft, which are well over 80% more fuel-efficient per seat kilometre than the first jets that were introduced in the 1960s. These improvements in fuel efficiency were made possible because of advancements in jet propulsion, lightweight materials and aircraft design, and have led to the dual benefit of reducing both operating costs and carbon emissions. Hence, innovation and investments in the right technology can drive environmentally sustainable solutions that enable growth while keeping costs down. This is something which I strongly encourage the aerospace community to continue to pursue.

Challenge 3: Ensuring the Safe use of Our Airspace

A third challenge that I would like to share is ensuring the safe use of our airspace amidst the increased proliferation of drones and unmanned aerial systems. Our airspace is a shared conduit where aerospace technologies are being applied to transform the way we work, live and use the space. For example, drones are being used to perform inspections in remote and hard-to-reach places and for last-mile logistics delivery. Electric vertical take-off and landing systems, which can be used as air taxis, are also being developed to improve urban mobility.

The increased presence of drones and unmanned systems will make our urban airspace more crowded, busier and more complex to manage. Current airspace management systems may not be adequate to meet future demands as this would then limit the potential utility of our urban airspace in areas that can bring meaningful value to our society. I believe that technology holds the key to enabling more efficient use of our urban airspace, while ensuring aviation safety. An example is the Unmanned Aircraft System traffic management system, developed by a consortium led by Nova Systems, that was demonstrated live in Singapore last year. The development of this prototype system was partially funded by Singapore's Ministry of Transport and the Civil Aviation Authority of Singapore, and the outcomes from the project will aid our authorities in pursuing more efficient ways to safely manage drone traffic at scale in Singapore. Efforts should therefore be focused on accelerating the development of such technologies. New norms and rules governing our airspace will also have to be introduced in order to ensure the safe use of drones and unmanned systems in an increasingly crowded three-dimensional space.

SINGAPORE'S AEROSPACE INDUSTRY REMAINS RESILIENT

The challenges that I have just shared are well understood in Singapore because of our experiences as a key node in the global aerospace value chain. Singapore is Asia's leading aerospace MRO hub and contributes to 10 percent of global aviation MRO output. Our aerospace industry employs over 20,000 people and supports the aviation sector, which is an enabler of other sectors such as those of tourism, financial services, retail and manufacturing.

As with the rest of the world, Singapore's aerospace industry has also been impacted by the COVID-19 and the past two years have been difficult. To cushion the impact of the pandemic and to protect jobs, the Singapore Government provided wage support to the aerospace and aviation sectors through what is known as the Jobs Support Scheme in 2020 and also in 2021. An additional S$870 million OneAviation Support Package was also introduced for the aviation sector in 2021 to preserve its core capabilities and preserve Singapore's position as an aviation hub post-COVID-19.

Singapore also continued to maintain a strong base of aerospace activities despite the pandemic. Collaboration across the industry, defence technology community and academia remain strong. We have also continued to sustain a strong talent pipeline and investments in the aerospace workforce to ensure that it is equipped with the relevant skills for the future.

Separately, digital services, autonomous technologies and sustainability have been identified as new growth areas for the industry and for aerospace companies in Singapore, and these companies are looking to fill some additional 1,000 positions over the coming two years, in roles such as data analysts, robotics and automation engineers, and aircraft technicians.

Our defence and commercial aerospace sectors have also begun making inroads into these growth areas. For example, the RSAF has been collaborating with the Defence Science and Technology Agency (DSTA) on the use of data analytics to monitor aircraft fleet health and pre-empt maintenance actions to improve maintenance efficiency and reduce the workload on the RSAF's aircraft engineers. The RSAF and DSTA are also conducting trials on the use of autonomous self-organised drones for functions such as runway damage assessment and security patrols of the airbase perimeter to optimise manpower resources and enhance effectiveness and efficiency of operations. Within the commercial sector, home-grown ST Engineering has continued to advance its Smart MRO capabilities and transform their hangars and workshops into one for the future, through the adoption of digital technologies to optimise the use of resources, to reduce wastage and to lower operating costs.

In the area of environmental sustainability, we are taking concrete steps to fight climate change. For instance, the Civil Aviation Authority of Singapore, in partnership with Singapore Airlines and Temasek Holdings, will be commencing a one-year pilot on the use of Sustainable Aviation Fuel in Singapore. The RSAF is also doing its part and is in the midst of trialling the use of green aviation fuel on our F-16 Fighters, so that it can understand the engineering, logistics and infrastructure works needed to scale up the use of green aviation fuel when that becomes more cost-effective.

The examples I have highlighted demonstrate how Singapore's aerospace sector has not let up on efforts to seize new opportunities even as we cope with ongoing challenges. Singapore's aerospace industry remains resilient, with a supportive Government, robust infrastructure and strong culture to aid in innovation and experimentation. It is therefore fitting that we are able to gather here today, in Singapore, both physically and with technology online, for a conference such as this, to discuss the latest developments in aerospace technologies and more importantly, how we can work together to put these in effect and emerge stronger together.

CLOSING

With the participation of the many engineers and researchers from the industry, academia and defence community, both from Singapore and around the world, I am confident that the discussions and cross-sharing of ideas will be fruitful and inspire will new innovations that will better position the aerospace sector for what is to come beyond our horizon.

On this note, I once again thank everyone for coming to the 10th edition of SATEC, and I wish you a very successful and productive conference and an exciting week at the Singapore Airshow 2022.

Thank you very much.