Singapore: 'Bustling, Dynamic, and Filled with Opportunities'

Singapore Deputy Prime Minister and Minister for Finance Heng Swee Keat kicked off the opening ceremony celebration on the eve of Singapore Airshow 2020 acknowledging global uncertainties, especially in light of the novel coronavirus, but expressing confidence that the strength of the aerospace sector will bring a rosier outlook. In addition, he praised the strong industry support of the airshow despite the coronavirus outbreak.

“We start the decade on an uncertain note,” Heng said in his prepared remarks. “Global economic growth is projected to be modest,” he added, saying reports point to tentative signs of stabilization but also of a sluggish recovery. 

“The global order is undergoing significant shifts. Global trade, the rule of law, and multilateralism have all come under pressure,” he said. Volatile oil prices already have fed uncertainty for air travel and now the novel coronavirus outbreak is a new source that is building on apprehension, he said.

“Governments across the world are rushing against time to contain the spread of the virus,” he said, but “until we overcome the outbreak, we have to brace ourselves for its impact.” Passenger numbers are ebbing and airlines are feeling the immediate impact, he added.

“Some airlines have been particularly hard hit and have resorted to substantive cost-reduction measures, including putting staff on unpaid leave and even laying off some of their workers.” This raises fears that it could have a wider impact on aviation, including aircraft orders and MRO, he said.

At the airshow, Heng said exhibitors and delegations are understandably concerned about the outbreak, particularly as Singapore raised the risk assessment to Code Orange. “Organizer Experia Events has been hard at work as the situation evolved, making adjustments to their plans, and putting in additional safeguards for all participants, such as temperature screening,” he said. “But I am glad that most of the exhibitors have rallied together and continued with this exhibition.”

He further expressed appreciation that the U.S. and China performance teams agreed to participate at the airshow despite the current coronavirus situation. “The Ba Yi Aerobatics team from the People’s Liberation Army Air Force have specially flown in for the first time. This also marks 30 years of diplomatic ties between China and Singapore,” he said.

At the same time, Heng acknowledged efforts to trim parts of the show, such as limiting the number of public visitors. “Depending on how the situation changes in the coming days, additional measures may be introduced.”

While the situation is still rapidly evolving, he said he was glad to see the global efforts to contain the outbreak, including the firm and decisive measures China has taken to contain the spread.

“We live in a highly interconnected world, with integrated global supply chains and good people mobility, which has been accelerated by air travel. As countries step up safeguards, we should all do so based on data and scientific evidence as well as the specific context of each country,” he said, ensuring “we also do our best to sustain the flow of goods and commerce, even as we are united in our objective to protect the well-being of our people…I am similarly confident that the global aviation sector will weather this coronavirus outbreak, much like how you recovered and emerged stronger from September 11, the Global Financial Crisis, SARS, and MERS.”

And, Heng added, the future of the aviation sector remains bright with the number of new travelers expected to double over the next 20 years from 4 billion to 8 billion. “Half of all new air travelers will be from the Asia-Pacific region,” he said.

Growth potential in the region is strong with a fast-growing middle-class population and a youthful Southeast Asia in particular. “Hence, it is no surprise that the Asia-Pacific is projected to become the largest aviation market in the world, accounting for more than 40 percent of new aircraft deliveries in the next two decades,” he said.

In Singapore passenger traffic at Changi airport has grown 5 percent per year over the last decade while total aerospace industry output topped $11 billion in 2018. “Our companies have made significant investments in anticipation of the growth in regional demand,” he said, including in innovation—a key growth driver for the industry.

To support this, he noted a need for a skilled workforce and to work closely with schools and institutions to ensure updated curriculums. In Singapore, the education institutions are closely collaborating with the aviation sector to develop courses and work-study programs, such as the Institute of Technical Education’s SkillsFuture Work-Study diploma in partnership with MRO providers.

Along with the workforce, sustained infrastructure investment is necessary to support the growth in air transport. “Singapore has made significant investments over the past decade,” including expanding and updating Seletar Aerospace Park, along with Changi Airport. “This was the culmination of years of planning and Jewel [Changi Airport] is now an international icon,” he said.

Looking forward, Terminal 5, to be completed in the early 2030s “will be the centerpiece,” enabling the airport to handle 50 million more passengers a year, 50 percent more than current capacity.

“As a major financial and connectivity node in the Asia-Pacific, Singapore’s Infrastructure Asia office can contribute to regional connectivity and integration,” he said, adding “The future of aviation is bustling, dynamic, and filled with opportunities. And this industry has been resilient to setbacks and surprises that have come your way. “