Singapore bags $750m in aerospace investment projects, sector to hire 2,500 more workers: EDB

SINGAPORE — The aerospace industry is expected to hire more than 2,500 workers here over the next three to five years to support the sector's continued growth.

These new jobs include operator, technician, engineering and corporate roles, said the Economic Development Board (EDB) on Feb 18 in an update on the industry's performance and outlook.

Speaking at a press conference ahead of Singapore Airshow 2024, EDB executive vice-president Cindy Koh said the agency has been working with aerospace companies since the last air show in 2022 to secure new investments.

It has since attracted more than $750 million in commitments over the next three to five years for more than 10 new projects here.

They include plans by ST Engineering to build a new $170 million 84,000 sq m aircraft maintenance facility in Changi Airport. Aircraft engine-maker Pratt & Whitney is also increasing the capacity of its Singapore engine centre by more than 60 per cent.

Koh said there are more than 130 aerospace companies in Singapore, and seven out of 10 aerospace jobs are taken up by locals.

Over the past two years, hiring by aerospace companies here was ramped up, with total employment in the sector increasing by almost 3,000 to more than 21,000 from 2021 to 2023.

About 22,000 people worked in the sector here in 2019, but many were laid off after the Covid-19 pandemic battered travel demand.

In 2023, Singapore's aerospace output grew 16 per cent year on year, with the recovery here outpacing global output by a year.

Preliminary estimates put Singapore's aerospace output in 2023 at more than $15 billion, compared with close to $13 billion in 2019 before the Covid-19 pandemic struck, according to EDB.

Koh added: "The outlook for our aerospace industry is bright, and many companies are looking to invest and grow in Singapore."

She said EDB understands there are hiring and supply chain challenges in the near to medium term, and Singapore will support aerospace companies on these fronts.

For instance, the Institute of Technical Education will more than double the cohort size for its aircraft engine maintenance diploma from 20 places a year to 50 in 2024, to meet high interest. In 2023, the programme received four applications for every opening.

In the longer term, Koh said, EDB is on the lookout for new growth areas to ensure Singapore's competitiveness.

Environmental sustainability is one such area, and JTC Corporation will be rolling out sustainable infrastructure solutions, including provisions for electric vehicle chargers, at a new development at Seletar Aerospace Park.

Sustainability is also a focus for Singapore Airshow 2024, said Leck Chet Lam, managing director of Experia Events, the organiser of the biennial aerospace and defence exhibition.

For instance, Hyundai Ioniq 5s will be used to ferry VIPs around — the first time electric vehicles will be used for this at the event.

Other firsts include debuts for the C919 and ARJ21 jets from Chinese aircraft manufacturer Comac, China's Z-10 attack helicopter and Gulfstream's G700 business jet.

Over 1,000 companies from more than 50 countries are expected to take part, with more than 90 per cent of the top 20 global aviation brands represented.

There will also be a sizeable Chinese presence at the trade show. Koh said this was an encouraging early sign of Chinese aerospace companies using the event for their business activities.

"Comac is here, their leadership team is here, so, yes, EDB will be having a series of discussions with them," she added.

A question was asked about the warning issued by the police over calls for protests to be held at the air show against Israel's conduct in the war with Hamas. There are 13 Israeli entities exhibiting at the air show, including the International Defence Cooperation Directorate of Israel's Ministry of Defence.

In response, an Experia spokeswoman said the company is well aware of the police statement.

"We do take into consideration the safety of all our attendees. I would also like to remind that the Singapore Airshow is a platform for trade and networking, and we stay very much within the boundaries of what we are here for," she added.

With a 2,000 sq m pavilion showcasing its latest innovations, ST Engineering will again be the largest exhibitor at the air show.

The technology and engineering group on Feb 18 launched a new production-ready model of its Terrex armoured fighting vehicle, which will come with a hybrid electric drive option.

Chua Jin Kiat, chairman of ST Engineering's Singapore Airshow 2024 steering committee, said conventional military capabilities have come back to the fore in the aftermath of ongoing conflicts around the world.

"You need ammunition that can shoot farther, fighting platforms that are better protected, more mobile, more agile," he said.

At the same time, the development of digital defence capabilities has also accelerated greatly. "Protecting our digital space has become very, very tangible," Chua added.

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This article was first published in The Straits Times. Permission required for reproduction.