Singapore Aerospace

Singapore’s aerospace industry has maintained a leading position 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 one-stop center for all maintenance, repair, and overhaul (MRO) services and a large precision engineering suppliers, Singapore has captured over 10% of the global MRO market.

Many American exporters use agents or distributors to serve the Singapore market and other markets in Southeast Asia. Finding prospective partners usually presents no problem as Singapore firms are aggressive when it comes to representing new products and typically respond enthusiastically to new opportunities. Because of the relatively small size of the Singapore market, potential partners often ask to cover regional territories. With a strong history of trade, Singaporean companies are particularly successful in taking products to the region. New-to-market firms should consider partnering with Singapore firms knowledgeable in aircraft industry networks.

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 300ha, 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.

Singapore’s MRO business segment is robust. Backed by a pool of over 130 aerospace companies, 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. Singapore is also a center for regional parts distribution and warehousing.

Prior to the COVID-19 pandemic, Singapore Changi Airport’s passenger traffic has grown steadily in the past decade, with an average per annum growth of 5.4%. Barring any unforeseen circumstances caused by the COVID-19 situation, and based on the earlier projection 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.

Besides MRO services, sales prospects for products related to aircraft repair and overhaul, such as repair equipment for landing gears and nacelle, brake linings, tires,engines and fuel systems, avionics systems and equipment, fan blades, test equipment, etc., will likely remain strong over the next few years. Going forward, besides strengthening the MRO cluster, the aerospace manufacturing and R& D segments will also be further developed. Products designed and manufactured in Singapore include engine casings, engine gears, valves, seat actuators, and electrical power systems, among others.

For more information contact Hawcheng Ng U.S. Embassy Singapore Commercial Specialist Hawcheng.Ng@trade.gov