Speech by JTC's CEO, Mrs Ow Foong Pheng
at the ST-Airport Services Pte Ltd (STARS) Fuel Depot Facility Ground-breaking Ceremony
on Wed 3 June 2009 at 9.15AM

Mr Wayne Han, President of Toll Asia,

Mr Vincent Phang, GM of STARS,

Distinguished Guests,

Ladies & Gentlemen,

Good morning.  It gives me great pleasure to join you here today for the ground-breaking ceremony of STAR’s fuel depot facility at the Seletar Aero+sPace, or SAP in short.  This marks a significant milestone in the development of the SAP.

STARS' Strong Commitment

2.         As one of the pioneering aviation fuel service providers in Singapore, STARS exemplifies a homegrown company that has won the confidence of its aviation clients through its uncompromising service standards and high quality product.  Today, it provides a suite of aviation fuel logistics to both commercial and military customers, not only in Singapore but around the region as well.

3.         Aviation fuel logistics is a critical component of the aerospace industry. STARS Fuel Depot Facility is thus a key piece of the infrastructure in the SAP.
At an investment value of S$6 million, the new fuel depot facility is testament of STARS’ confidence in the potential growth of the Singapore aerospace industry.  This is a strong vote of confidence, especially against the backdrop of the current global economic situation.

4.         STAR’s new fuel facility will be well-equipped to serve the aerospace community and fleets at Seletar, from piston-engined training aircrafts to the latest business jets and commercial airliners.  The timely and affordable aviation fuel provided by this new facility also helps to sustain Singapore’s position as a leading business aviation hub in the region.

Singapore's Aerospace Industry

5.         The growth of the aerospace industry over the past few years has been encouraging and growth prospects are bright.  In recent years, a record number of new aircraft orders were placed with the two leading aircraft makers.  Based on Boeing’s Market Outlook done in 2008, the total number of in-service airplanes worldwide will rise from 19,000 to 35,800 by 2027.  Over the next 20 years, passenger travel is projected to grow at an average of 5% per year and cargo traffic at the rate of 5.8% per year.  Underpinned by demand in the fast-growing China and India, air traffic growth for the Asia-Pacific region is expected to be above the global average. 

6.         Since 1990, Singapore’s aerospace industry has grown at an average rate of 13 per cent. Singapore has become the most comprehensive MRO hub in Asia.  Just last week, it was announced that the aerospace industry managed to achieve yet another record output of over S$7 billion in 2008.  The committed investment projects are expected to contribute S$100 million in value added per annum to Singapore’s Gross Domestic Product (GDP) when they are fully implemented.   

7.         The numbers are encouraging.  When the global economy emerges from the current recession, I am sure we will see even better and more positive results.  The projections by Boeing are realistic and we also happy to hear from our customers that their order books are still very healthy.  The existing aircraft fleet in Asia Pacific is a small percentage of the global fleet and we are confident that the demand for new and fuel-efficient narrow-body aircrafts will continue to be strong. 

8.         Against this backdrop of a positive and upward trend, we are confident we will achieve the target of SAP contributing a total of $3.3 billion in value added and 10,000 jobs when it is completed by 2018.    

Updates in SAP Development

9.         JTC is thus working together with the other government agencies, to forge ahead to strengthen Singapore’s position in the aerospace industry.  The SAP symbolises the Singapore government’s commitment to the aerospace industry.  As the masterplanner and developer, it is JTC’s vision to develop SAP into a world-class aerospace park. We will press on with our infrastructural works at the SAP to ensure that they are ready for our customers' operations, as soon as the economy picks up.

10.       On this note, I am happy to report that the infrastructure works for Phase 1 of SAP is almost completed. That, for Phase 2 has commenced and is progressing well.  JTC has also worked with the Civil Aviation Authority of Singapore to extend the tenancies for existing companies at the East Camp of Seletar, while JTC develops facilities to house them in the long term.  The facilities will include a Business Aviation Complex, which we will start constructing by the end of the year, and a Component MRO & Manufacturing Facility that will provide ready-built space for aerospace companies. 

11.       JTC has also consulted several industry players on the development of a shared hangar facility at SAP.  Companies will be able to tap on this shared hangar as and when they need it.  This will enable them to save on the need to invest in fixed infrastructure and enjoy operational cost savings in the long run.  We are currently studying the operational model for such a shared hangar and target to launch a site for this purpose at the beginning of next year.  The Business Aviation Complex, Component MRO & Manufacturing Facility and Shared Hangar are part of JTC’s efforts to cater to the needs of the different segments of the aerospace industry at SAP.

12.       On the business front, two existing key MROs, ST Aerospace & Jet Aviation, have taken up long leases at SAP. JTC is also happy to report that we are in advanced discussions with a few other MRO customers, manufacturing companies as well as training institutions, who have indicated strong interest to locate in SAP.  

Conclusion

13.       In closing, let me congratulate STARS on their new fuel depot facility.  This facility marks the start of another new chapter in the STARS development at Seletar and our long-term strategic partnership. 

14.       Thank you.

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