Speech by Mr Teo Chee Hean, Deputy Prime Minister and Minister for Defence, at the Singapore Airshow Opening Ceremony

Honourable Deputy Prime Minister and Ministers,
Your Excellencies,
Chiefs of Defence Forces and Service Chiefs,
Distinguished Guests,
Ladies and Gentlemen,

Good Evening

Introduction

I would like to extend a very warm welcome to all of you, especially to those who have travelled from overseas. It gives me great pleasure to join you for the opening of the biennial Singapore Airshow, the premier airshow in the Asia-Pacific region. Although this is the second time that we are hosting the Singapore Airshow, many of you would be familiar with Singapore's long association with airshows which spans close to three decades.

I am delighted to learn that more than 800 companies from over 40 countries are participating in this year's Singapore Airshow, including 62 global Aerospace companies.

Asia is leading the world's economic recovery.

2009 was a year of uncertainty, as the world weathered the effects of the global financial crisis. As we start a new decade in 2010, we see greater optimism and the start of a gradual economic recovery led by Asia. The International Monetary Fund has forecasted that emerging Asian economies will grow at a rate of 8 percent this year, double the 4 percent rate for the global economy. As the Asian economies resume their growth, we believe that air traffic and aircraft fleet sizes will also increase correspondingly, presenting promising opportunities for the Aerospace industry.

The Global & Asian Aerospace Industry

The Aerospace Industry plays an important role in the global economy. The highways of the sky link far-flung communities together. They facilitate the movement of high value goods and tourists, and of people looking for new economic opportunities. Today there are over 15,000 commercial aircraft flying in the world, transporting over 2 billion passengers yearly. As the global economy recovers, aircraft deliveries are slated to grow, with increasing demand for air travel especially from the emerging economies around the world.

In Asia, prospects for the Aerospace industry look good. Boeing has projected that the number of aircraft in service in the Asia Pacific will more than double from 3,900 today to over 11,000 in 2028. In addition, Airbus expects that Asia will account for the highest proportion of global air traffic, over 30%, also by 2028.

Singapore's Aerospace Industry

Singapore is a key node in the global aerospace industry. Singapore's Aerospace Industry has proven resilient. In 2009, we achieved an output of S$7 billion, on par with the output achieved in 2008. We have a leadership position in Maintenance Repair and Overhaul or MRO with comprehensive nose-to-tail capabilities. Singapore dominates the Asia Pacific market with a quarter of Asia Pacific's MRO market share.

I am delighted to hear of the new aerospace investments that were secured in the last year. Some of these will be holding events during the Airshow. SIA Engineering Company, for example, will be announcing the launch of its A380 hangar. Singapore Aero Engine Services, will also be holding an opening ceremony for its new facility extension. With these investments, the companies will be deepening their capabilities and taking their operations to a new level.

Just a few hours ago, Rolls-Royce held the construction launch of its aero-engine assembly and fan blade manufacturing plants at Seletar Aerospace Park. I am told that Singapore will be the first location in Asia to assemble large commercial aero-engines. We will also be the only location outside the UK to manufacture Rolls-Royce's proprietary hollow titanium fan blade. This is a major step forward for us and bears testimony to Singapore's competitiveness in Aerospace with its conducive business climate, highly skilled and disciplined workforce, convenient location, efficient logistics, and sophisticated financial services.

The investments which companies like Rolls-Royce are making are an affirmation of our decision to set aside land for Seletar Aerospace Park. The 300 hectare Park will host an integrated cluster of MRO, manufacturing, aviation training and business aviation activities. Already, Seletar Aerospace Park looks well on its way to be the place for global Aerospace companies to base their Asian operations.

Defence Sector

Apart from the Commercial Aerospace sector, we also see positive prospects for the Defence sector. This sector has weathered the crisis fairly well. Despite some restraints on defence spending in 2009, countries around the world continued to invest in long term programmes to renew and upgrade their air defence assets and equipment. With the global recovery, we can expect spending on military aircraft to rise as countries resume their plans to acquire next generation combat fighters, improve Intelligence, Surveillance and Reconnaissance capabilities and upgrade to a modern network-centric warfare environment.

In addition, the demand for military aircraft that can perform a wider range of missions is also likely to increase in the near future as countries face even more complex security challenges other than war. For example, critical operations such as Humanitarian Assistance and Disaster Relief will be an important role for transport aircraft that can carry out airlift or personnel evacuation missions. Helicopters too have demonstrated their versatility and are indispensable in roles ranging from delivery of emergency aid directly to survivors, medical evacuation, and counter-piracy operations where helicopters have proven to be an effective deterrent to pirate boardings.

Conclusion

With Asia leading the world economy out of recession and the expanding needs for both commercial and defence aircraft, we anticipate significant growth opportunities for the Aerospace industry in this region. Singapore Airshow is an excellent platform to network and prepare for these future opportunities. Your presence here today is testimony to that optimism. Welcome once again to the Singapore Airshow and to Singapore, and do have a fruitful week ahead.

I now take great pleasure in declaring Singapore Airshow 2010 open.

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