Despite a slowdown in the aviation industry towards the end of last year, Singapore's aerospace sector posted a record output of more than $7 billion in 2008. --ST PHOTO: YEN MENG JIIN
DESPITE a slowdown in the aviation industry towards the end of last year, Singapore's aerospace sector posted a record output of more than $7 billion in 2008.
But business was hit and while the final numbers are not out yet, the growth over 2007 is believed to be under 5 per cent. Total output grew 10.4 per cent in 2007 to $6.9 billion.
This year will be tough, warned Economic Development Board's deputy managing director Manohar Khiatani.
Mr Khiatani told The Straits Times on the sidelines of an industry event on Wednesday: 'In line with the global economic trends, the growth of the aerospace industry has also suffered. 'Our local aerospace industry has also been affected by the downturn but the outlook remains very positive and we still expect growth despite the challenging conditions.'
How much growth though is hard to say given the uncertain times, he said. Singapore's aerospace industry here is driven mainly by aircraft maintenance, repair and overhaul (MRO) services. The EDB hopes to attract more companies to start manufacturing operations here. This lucrative sector accounts for just 10 per cent of the country's total aerospace output now.
Singapore can take this higher, said Mr Chris de Lavigne, global vice-president at consulting firm Frost & Sullivan. He told the inaugural Aerospace Supplier eXchange conference and exhibition at the Singapore Expo that while China and other countries in the region may offer cheaper labour, Singapore has its strengths.
Among them are strong intellectual property (IP) rights, a sustainable business environment and the latest in technological advancements. The development of Seletar Aerospace Park which is due to be fully completed by 2018, will give the local industry a big boost in this area. It will include a Rolls-Royce facility that will assemble and test wide-bodied aircraft engines.
Trade and Industry Minister Lim Hng Kiang, who officiated at the opening of the event, urged companies to use the downturn to strengthen their competitive capabilities, forge partnerships, venture abroad and be ready when the upturn comes.
To give companies here a push, the Association of Aerospace Industries (Singapore) which organised the three-day event jointly with IIR Exhibitions, aims not only to showcase Singapore's capabilities, but to match suppliers here with overseas buyers.
With support from IE Singapore, the organisers have brought in 12 companies from the United States, England, France and India.
