OUTPUT by the Singapore aerospace industry grew by 10.4 per cent to a record $6.89 billion last year.
Value added was up 8.5 per cent to $2.69 billion, while the number of people employed by the industry grew by 8.2 per cent to 19,000 in 2007.
The figures were announced by the Economic Development Board yesterday at the Singapore Airshow.
The industry, which encompasses manufacturing and maintenance, repair and overhaul, remains one of the fastest growing sectors in Singapore. Some $168 million in manufacturing fixed asset investment were committed last year.
'The 2007 investment projects are expected to contribute $103 million in value added to Singapore's gross domestic product,' said Manohar Khiatani, EDB's assistant managing director for industry development.
EDB's strategy is to build up a comprehensive network of clusters, with suppliers located near their principals, so as to provide players with a competitive strategic advantage.
Mr Manohar said that Singapore was well positioned to capitalise on the boom in aviation and aerospace services in Asia. 'While maintaining double digit growth every year would be a challenge, we should be able to double our aviation output by 2018,' he said.
Singapore currently controls 25 per cent of the Asian aerospace MRO (maintenance, repair and overhaul) market, but neighbouring countries and Middle Eastern hubs like Dubai are determined to boost their MRO capabilities, he added.
EDB's strategy, therefore, has been to build up a comprehensive network of clusters, with suppliers co-located near their principals, so as to shorten turnaround times and provide players more of a competitive strategic advantage.
One such initiative is the 300-ha Seletar Aerospace Park, where companies including Rolls-Royce, Pratt & Whitney, ST Aerospace and other leading players will be located in an integrated 'aerospace campus' with collaborators and suppliers.
To date all 30 ha of its first phase has been taken, and a third of its 38 ha second phase is booked up. Phase 3 will be released in 2011.
Of the 300 ha, the airport occupies 160 ha, leaving 140 ha for industrial use.
One of the biggest players in Seletar will be Rolls-Royce's 'Facility of the Future' for the assembly of gas turbine aerospace engines. The $320 million facility will be the first plant in Asia to make engines for large commercial aircraft.
Other major investments in Singapore last year include Messier Services Asia's expansion of its landing gear facility; ST Aerospace's new hangar at Seletar Aerospace Park; GE Aviation's expanded materials operations; and Embraer's regional logistics and spares hub.
In R&D, Goodrich Aerostructures Service Centre-Asia's is developing a new prototype fan cowl and nacelle components for next generation single-aisle aircraft engines; while A*Star is lead managing a pre-competitive collaborative aerospace research involving a consortium comprising Boeing, EADS, Pratt & Whitney and Rolls-Royce; and AAR set up a new design centre in Singapore for aircraft components and systems.
