Singapore - Country Commercial Guide
Aerospace

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2020-09-16

Overview

Reeling in March from the suddenness and depth of the COVID-19 crisis, the air transport industry at least cautiously believed that the second half of 2020 would see the beginning of a turnaround.  This will augur well for Singapore given its position as the leading aero hub in the Asia-Pacific market.  Growing by a compounded annual growth rate of 8.6% over the past two decades and a total annual output of more than $8.0 billion, the Singapore aerospace industry is a key economic driver for Singapore.  As a convenient one-stop center for all aircraft maintenance needs, with a full range of maintenance, repair, and overhaul (MRO) services and a large precision engineering suppliers base, Singapore’s MRO cluster has captured over 10% of the global MRO market.

Singapore enjoys excellent connectivity and an efficient supply chain.  It is further strengthening its infrastructure to ride future growth trends.  The Seletar Aerospace Park is a centerpiece of this effort.  Spanning 300 hectares, the dedicated aerospace park will host an integrated cluster of activities including aerospace MRO; design and manufacture of aircraft systems, components, and light aircraft; business and general aviation activities; and a regional aerospace campus for aerospace education, research and training. 

 

2017

2018

2019

2020 (Estimate)

Total Local Production

7,004

7,606

8,140

6,675

Total Exports

10,112

13,553

16,249

12,531

Total Imports

14,864

22,172

25,153

19,131

Imports from the US

 

8,357

13,193

14,775

10,692

Total Market Size

11,756

16,225

17,044

13,275

Exchange Rates

1.34

1.36

1.34

1.39

$US millions (total market size = (total local production + imports) - exports)

Data Sources: Singapore Government Trade Statistics

Leading Sub-Sectors

Post COVID-19, Singapore’s MRO business segment is still expected to be robust.  Backed by a large pool of over 130 aerospace companies, Singapore has garnered a quarter of the Asian MRO market.  Singapore has become the leading aviation hub in Asia-Pacific today, contributing over a quarter of the region’s MRO output.  Leading players such as ST Engineering Aerospace and SIA Engineering Company carry out comprehensive nose-to-tail MRO services from airframe maintenance to engine overhaul to aircraft modifications and conversion.  Singapore is also a center for regional parts distribution and warehousing.

In addition to supplying to all aspects of the MRO business, Singapore should also see new growth opportunities in the areas of business aviation, regional training and asset management.

Opportunities

Demand for commercial and business aviation is expected to grow, fueled by Singapore’s growth as a global city and an anticipated increased travel trends post COVID-19 in the Asia Pacific region.  With Terminal 5 due for operation in the 2030s, Changi Airport will be expanded to a capacity of 140 million passengers per year by 2030.  A third runway will also be built to handle an increased air traffic and is slated to be operational by the early 2030.

To support the long-term growth of the logistics and aerospace industries, an industrial zone will also be developed for airfreight and air express operators as well as MRO activities.  These developments will offer great opportunities for U.S. businesses to supply the aerospace sector in Singapore.

Changi Airport’s passenger traffic has grown steadily in the past decade, with an average per annum growth of 5.4%.  With the prospect of strong aviation growth over the next 20 years, particularly in the Asia-Pacific region, demand for air travel is expected to increase and traffic at Changi Airport is anticipated to grow in tandem.  Singapore is particularly well-equipped to capture the demand from aviation-related services from this market given its MRO hub status, which will translate into greater opportunities for American suppliers to sell to this lucrative market. 

With 5 passenger terminals, 8 airfreight terminals and 3 runways ready in the 2030s, Changi Airport is arguably in good stead for the next era of aviation. 

Web Resources

Trade Shows

Singapore Airshow 2022

February 15 - 20, 2022

Singapore Government Offices

Singapore Economic Development Board

Civil Aviation Authority of Singapore

Defense Science & Technology Agency

Major Aviation Businesses

Changi Airport Group

ST Engineering Aerospace

SIA Engineering Company Ltd    

U.S. Commercial Service, Singapore Contact

Ng Haw Cheng, Commercial Specialist

Email: Hawcheng.Ng@trade.gov