Overview

According to the Airports Council International Asia Pacific, air traffic is expected to recover in 2024 which will see a challenge of traffic and demand increasing faster than capacity that can be built. Hence, Singapore Changi Airport is moving ahead in building the mega Terminal 5 to stay ahead of competition.  This is in line with the Ministry of Transport to ensure that Changi Airport will have the capacity and capability to seize opportunities from aviation growth, especially in Asia, to meet anticipated future growth.

Besides moving forward with Changi Terminal 5 development, Singapore’s aviation sector is expected to restore 85% to 90% of its pre-Covid-19 pandemic workforce by the end of 2022 after losing a third of its 35,000 workers during the pandemic. The recruitment process is in preparation for the surge in demand in air travel over the next couple of years.

As the leading aviation hub in Asia Pacific, Singapore continues to build on its infrastructure to ride future growth trends. Changi Terminal 5 (T5) is set to be one of the world’s biggest airport terminals when completed in the 2030’s. T5 will be able to handle up to 50 million passengers a year in the initial phase of operation, increasing the airport’s total annual passenger handling capacity to 135 million and it will host an integrated cluster of activities including aerospace MRO; cargo/industrial zone, and a three-runway system and network of inter and intra-terminal tunnels. These investments will go a long way to maintain, if not enhance Singapore’s MRO hub status in the region, particularly when the global aviation market start reopening in the foreseeable future.

Singapore has launched 13 small satellites since 2011, and ongoing partnerships with companies and research institutions aim to further develop its small satellite capability and create new space applications and services. Singapore will continue to invest in small satellite R&D but channel its resources to build deep and differentiated capabilities in a few selected areas including leveraging on quantum cryptography to explore commercial applications in secure communications of sensitive data for telecoms and financial industries.

Units: $ millions

Source: IHS Markit

Leading Sub-Sectors

Post COVID-19, Singapore’s MRO business segment is still expected to thrive. In addition to supplying to all aspects of the MRO business, Singapore will see new growth opportunities in areas of business aviation, regional training, and asset management.

Opportunities

Singapore is consistently developing its aerospace industry, particularly in its MRO and space segments.  This will undoubtedly provide great opportunities in Singapore for MRO and space activities to grow and so are the supply of aircraft parts and systems.  Suppliers of satellite-based quantum technologies for commercial applications should also have great opportunities in enhancing the Singapore space industry.

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 excellent opportunities for U.S. businesses to supply the aerospace sector in Singapore.

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

Resources

Trade Shows

Singapore Airshow

February 20-25, 2024

 

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

Singapore Space and Technology Ltd

 

U.S. Commercial Service, Singapore Contact

Ng Haw Cheng, Commercial Specialist

Email: Hawcheng.Ng@trade.gov