2017 MROs - OEMs - Engineering - R&D - - Satellites Aviation MROs - OEMs - Engineering - R&D -

SINGAPORE AEROSPACE 2017

Dear Reader,

This is the first time Global Business Reports has developed an has been coupled with the presence of a growing base of both local aerospace report on Singapore. We are pleased to have worked and multinational aerospace suppliers such as RLC Engineering with the team to showcase Singapore’s strength as an air hub and and Singapore Aerospace Manufacturing (SAM). the various industry players across the value chain within our aerospace sector. As you read through the pages of this report, we Many companies have cited Singapore’s strong manufacturing hope that it not only gives you a better understanding of the sector base, skilled manpower and focus on science and engineering but also an idea of how Singapore can be your trusted location as reasons for setting up manufacturing activities here. The from which to write your Asia growth story. burgeoning aerospace R&D landscape in Singapore, that taps into our existing strengths in science and technology research In the span of time since Airport first opened in 1981, capabilities, further allows companies to leverage industry- Singapore has achieved a strong reputation as a Global Aviation aligned research institutes and universities as well as a growing Hub. With over 500 accolades, is widely pool of research talent to enhance their manufacturing and MRO recognised as one of the world’s best international airports. activities through . Singapore has likewise become a widely known brand. Building on our strengths as an air hub, Singapore has developed With the increasing adoption of disruptive technologies such a leading aerospace industry that includes manufacturing, as robotics and automation, additive manufacturing, digital engineering, research and development (R&D), maintenance, manufacturing and the emergence of new business segments such repair and overhaul (MRO), and other aerospace-related services. as unmanned aircraft systems (UAS), Singapore is also looking to partner with companies to grow their innovation capability Today, Singapore has one of the largest and most diverse and develop new business models here. Notably, in 2016, concentrations of aerospace companies in Asia with over 130 signed a memorandum of understanding with the Civil Aviation aerospace companies making Singapore their home in the region. Authority of Singapore to conduct UAS proof-of-concept trials in Singapore. As a leading MRO hub in Asia offering nose-to-tail aftermarket services, Singapore has built airframe maintenance, engine These investments bear testament to Singapore’s status as overhaul, structural and avionics systems repair, as well as an established aftermarket services hub and a key aerospace aircraft modifications and conversion capabilities. These core manufacturing location that is innovation driven. Moving competencies, coupled with our commitment to quality and forward, Singapore will continue to expand and deepen our safety, have made Singapore a recognised one-stop solutions capabilities through supporting companies in building advanced provider for airlines’ maintenance and repair needs. Aerospace manufacturing and MRO capabilities, equipping our workforce companies continue to regard Singapore as their trusted partner with relevant skills and encouraging the adoption of advanced in Asia and have invested in MRO capabilities for new generation technologies to enhance competitiveness in our local aerospace platforms that will allow them to seize opportunities in the rapidly industry. growing Asia aerospace market. As a third of all new aircraft is expected to be destined for Asia- Leading aerospace OEMs and suppliers also offer a variety Pacific, there is an increasing need for aerospace companies to of other related services here, including fleet management, provide timely in-region support for their customers. We are component and spares distribution, logistics, aircraft leasing confident that with Singapore’s comprehensive MRO base, as well as pilot and crew training. These, added together, make strong aerospace workforce and connectivity to the rest of the Singapore the undisputed leading aftermarket hub in Asia. Asia-Pacific, Singapore will continue to be a prime location for aerospace companies to capture the growth opportunities in Beyond MRO and aftermarket services, Singapore is also looking Asia-Pacific. to support the global aircraft production ramp-up by working closely with aerospace multi-nationals and local suppliers to build manufacturing capacity and capabilities here. We have achieved Tan Kong Hwee, good success in aero engine manufacturing with leading OEMs Director, Transport Engineering, Singapore Economic including GE Aviation, Pratt & Whitney and Rolls-Royce. This Development Board Exclusive Data and Interviews Maps Leaders from both the Quantitative data help private and public sector readers better understand delve into the nuances and the position of Singapore, nascent developments that especially relative to its are shaping the industry. global competitors. 12, 28, 37 3, 14, 20, and many more 26, 27

Editorial Capabilities Content & Global Business Reports’ Directory journalists provide on-the- ground analysis of the trends Companies' capabilities list that are shaping Singapore’s and directory of Singapore’s aerospace industry. aerospace industry.

8, 15, 19, 24, 34, 41, 64-65, 66-71 47, 54, 58, 61, 63

8. The Singapore Aerospace Industry 34. Growing the Landscape- From MRO 58. Satellite and Telecommunication to Manufacturing 12. Interview with Singapore Economic Development Board 36. Interview with Thales in Singapore 60. Interview with Addvalue Technologies 13. Interview with SPRING Singapore 37. Interview with Singapore, Rolls-Royce 14. Facts and Figures 38. Interview with ST Aerospace 39. Interview with Jet Aviation Singapore 40. Interview with JTC 61. Solving an Age-old Problem that Vexes All Commercial Low Earth Orbit 15. Cutting-Edge Research & Satellites Development 41. Navigating the Skilled Labour 62. Interview with Thales, Technical and 17. A*STAR Aerospace Programme Shortages Space Development Agency for Science, Technology and Research 18. Association of Aerospace 43. Interview with Hawker Pacific Asia Industries (Singapore) 44. Interview with Excel Aerospace 46. Interview with Composite Technology 63. Conclusion International 64. Table of Capabilities 19. Educational Institutions 66. Directory 20. Locations of Educational Institutions 47. The Implementation of Industry 4.0 21. School of Mechanical & Aerospace and New Technologies Engineering, Nanyang Technological University 49. Interview with Accuron Technologies 51. Interview with Mitsubishi Electric Asia

24. Pushing Singapore’s Competences forward through Regional Competition 54. Introduction to Space

26. Aerospace Park 56. Interview with Singapore Space and 27. Singapore Aerohub in figures Technology Association 28. Interview with ATR Eastern Support 57. Interview with Singapore Economic 30. Interview with Southeast Asia Development Board (EDB), Office for Space 31. Interview with JEP Precision Engineering Technology and Industry (OSTIn) 32. Interview with Bombardier 33. Interview with Embraer Asia Pacific

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Woodlands

Seletar Airport

Changi

Changi SINGAPORE Airport

Jurong

Clementi Singapore

Jurong Island

Singapore at a Glance Population: 5,781,728 (July 2016 est.) Land area: total: 697 km2 This research has been conducted by Official language(s): Alice Pascoletti and Elisa L. Iannacone Mandarin (official) 36.3%, English (official) 29.8%, Malay (official) 11.9% Edited by Mungo Smith Head of Government: Graphic design by Gonzalo Da Cunha Prime Minister LEE Hsien Loong (since 12 August 2004) Layout by Özgür Ergüney & Deniz Kutlukan GDP: $296.6 billion (2015 est.) A Global Business Reports Publication Growth rate: 1.7% (2016 est.), 2% (2015 est.), 3.3% (2014 est.) GDP per capita (PPP): $87,100 (2016 est.) For updated industry news from our Source: CIA Factbook on-the-ground teams around the world, please visit our website at gbreports.com, subscribe to our newsletter by signing up Corporate Income Tax Rate: 17% to our VIP list through our website, World Global Ease of Doing business ranking 2017: 2 or follow us on Twitter: @GBReports Image: Composite Technology GBR • Industry Explorations • SINGAPORE AEROSPACE 2017 AN INTRODUCTION TO AEROSPACE INDUSTRY IN SINGAPORE

“The industry is currently moving towards a SMART factory concept, adopting automation and data driven systems to stay competitive in today’s challenging environment.”

Soh Chee Siong, CEO, JEP Precision Engineering. EDITORIAL Global Business Reports

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Image: A*STAR

Singapore has grown on the back of a need positioned as a constantly evolving and for survival since its independence from leading regional hub for the aerospace in- The Malaysia in 1965. Once a British colony, dustry. The Economic Development Board Singapore lost most of its market when (EDB), the lead government agency that it became an independent republic, yet plans and executes economic develop- Singapore retained the language and infrastructure ment strategies for Singapore, has selected from the colonials. The ' fear aerospace as one of eight target industries of communism spreading through SEA to develop in upcoming years given their Aerospace during the War made it eager to push for developing advanced technology enter the Singapore market and Singapore and manufacturing. “The EDB’s aim is to found many opportunities to support the continue positioning Singapore as a flag- Industry: British military during this time. As the ship aerospace hub within the Asia Pacific British withdrew their forces, this left the region, becoming more competitive and nation vulnerable so that creating its own innovating in MRO and manufacturing,” An Evolving defense capability was paramount for said Tan Kong Hwee, director of transport state security. The aircraft left behind by engineering, Singapore Economic Devel- Landscape the Empire were models after which Sin- opment Board. gapore could build and develop a thriving The country now holds 10% of the global aerospace industry. MRO market share and the government’s By Elisa L. Iannacone and With an annual output of over S$8 bil- aim is to increase Singapore’s production Alice Pascoletti lion (US$5.6 billion), today Singapore is capacity and IP by partnering with OEMs.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

“The government’s SPRING initiative also represents 90% of the country's aerospace its inception in 2007, SAP has established supports commercial companies that want sector. The remaining 10% is devoted to into a world class integrated aerospace hub to develop new capabilities. All of this manufacturing activities. Advanced manu- hosting a wide range of aerospace-related combined makes Singapore an ecosys- facturing and engineering have been iden- activities,” added Leow Thiam Seng. tem,” said Chow Kok Wah, general man- tified as a key technological focus area, The creation of the Rolls-Royce Seletar ager, Air Transport Training College. which is why a record of S$19 billion campus in 2012 has attracted local com- Both SPRING and the EDB operate as (US$13.3 billion) will be invested in the panies, such as JEP Precision Engineering, government agencies under Singapore’s research and development of these topics which makes engine casings and rings for Ministry of Trade and Industry. The former over the next five years. Rolls-Royce Trent 900 and 1000 engines. seeks to support SMEs in their journey to In an attempt to draw more investment and The campus acts as the company’s titanium establishing themselves as strong leaders solidify the presence of larger players in wide-chord fan blade manufacturing cen- and larger businesses. “We look forward the country, the Singapore Airshow, which ter, as well as housing R&D, training and to working with partners and SMEs from inaugurated in February 2008, was created engine assembly operations. Rolls-Royce the aviation industry that share the com- to encourage international partnerships established the first plant in Asia to manu- mon vision to grow Singapore into a and collaborations. According to the EDB: facture commercial engines in Seletar. This world-class aerospace hub,” said John Lu, “In 2012, Singapore Airshow saw more cutting-edge facility possesses the ultimate director of manufacturing & engineering, than US$31 billion worth of deals inked. operational and environmental efficien- SPRING Singapore. The show attracted over 45,000 trade visi- cies in the world, aiming to be a ground- Though these agencies work with compa- tors from 128 countries to attend.” breaking establishment. Like Rolls-Royce, nies across the industrial landscape, they Figures continue to rise. Industry giants many companies view having a presence have supported many companies operating have found in Singapore a place to estab- in SAP as a key achievement in their road- within the aerospace realm, particularly lish their operations and build for the fu- map. “Moving into within the precision engineering section. ture. Locations such as Seletar Aerospace (SAP) will be a major milestone which al- Locally represented by the Singapore Pre- Park (SAP) have enabled an aerospace lows us to build upon our capabilities in the cision Engineering and Technology As- ecosystem to emerge. MRO of aircraft interiors and expand into sociation (SPETA), precision engineering Launched in 2007, SAP serves the aero- new ones. Being closer to our partners will activities in Singapore started in the 1970s space sector by increasing the number of provide shorter turnaround time while pre- to support the manufacturing investments jobs in the country as well as continuously senting a more comprehensive range of ser- 9 in the country. There are currently ap- attracting leading industry players such as vices to business jet customers that choose proximately 2,700 companies operating Rolls-Royce, Airbus Group, Bombardier to use for aircraft MRO ser- in the precision engineering sector, servic- and Bell . “This is exemplified vices,” said Mr. Tan Chii Sin, president of ing a range of industries, from medical, through the “Queen Bee” effect. The co- Excel Aerospace. electronics and oil and gas to aerospace. location of SMEs and MNCs in SAP cre- Aside from physical company expansions, With a wide range of operations focusing ates more opportunities for networking new robotics and automation technologies on the manufacturing of jigs and fixtures, and business collaborations, thereby en- are being developed and implemented in metal stamping, metal castings, precision hancing competitiveness of the aerospace Singapore to position the country as an in- machining, photonic and semi-conductor industry,” said Leow Thiam Seng, group novative technological expert, capable of equipment, among several others, this in- director of Cluster Group, JTC. serving companies and clients with the latest dustry segment plays an important role in Founded in 1968, JTC is the lead govern- trends in the market. Adopting Industry 4.0 the continued development of Singapore ment entity in charge of developing indus- cyber-physical systems to monitor and col- manufacturing capabilities. trial infrastructure in Singapore, as well as lect data allows for the progressive decen- Developing new IP products and compe- innovative space. They have worked on tralization of certain decision-making pro- tences through R&D and innovation is par- projects such as Changi Business Park, cesses in the workplace. Data analytics are amount for the country’s continued growth CleanTech Park and the Airport Logistics also heavily relied on in order to improve and international leading position. “We Park of Singapore. “Seletar Aerospace operations and provide support for custom- want to establish more brand and technol- Park (SAP) is one of JTC’s iconic develop- ers. “It is important to work with the indus- ogy owners in the industry. To support this, ments dedicated to the continued growth try to help SMEs become Digital Champi- we aim to work with the industry to facili- of Singapore as an aerospace hub. Since ons to take the lead in this,” said John Lu. tate companies’ diversification towards the aerospace sector through capability devel- opment and facilitation of partnerships,” added John Lu. “ There is a clear indication that the centre of gravity for aerospace is moving Singapore has grown to host one of the from the USA towards Asia now. Singapore is an excellent place to do business largest, most diverse concentrations of and an ideal hub in terms of logistics, legal framework, safety, IP for R&D and IP aerospace companies in Asia. With 130 protection. In terms of connectivity, one can fly all over Asia from here very easily. companies in the sector employing 20,000 employees, the country has now earned a quarter of Asia's MRO market, which Ricardo Pesce, Managing Director, EMBRAER ASIA PACIFIC ” Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations EDITORIAL Global Business Reports

Implementing additive manufacturing for the production of parts is also an important aspect of the current R&D developments in the country. “We want to see more SMEs on-board, supporting the efforts to- wards the build-up of digital manufactur- ing in Singapore,” added John Lu. “The industry is currently moving towards a SMART factory concept, adopting au- tomation and data driven systems to stay competitive in today’s challenging envi- ronment,” said Soh Chee Siong, CEO of JEP Precision Engineering. JEP Precision Engineering is currently adopting automation technologies for ro- botic loading and unloading. Hoh Chee Siong added: “Keeping up with technol- ogy is no longer a choice but our key to survival in today’s competitive market.” With a 6.1% projected annual air traf- fic growth for Asia PAcific, demand for skilled-labor will increase exponentially. The region will become the largest travel market in the world in the next two de- cades and will own well over a third of the global fleet. “Singapore will capitalize on the rapid growth in aviation activities in 10 Asia. This country is a key global player in aerospace MRO, with an excellent seaport, airport and infrastructure,” said Lee Swee Meng, general manager of Composite Technology International (CTIPL). Singapore’s strategic geographical location is one of the reasons that have drawn many companies to base themselves in the coun- try. Furthermore, in this 720 sq-km island, all companies can be reached easily, mak- ing it an ideal location for industry players. Singapore is renowned for its ease of do- ing business as well as possessing the nec- essary infrastructure for a successful aero- space industry. Changi Airport is widely acknowledged as a world leader amongst international airports and houses the Chan- gi Airfreight Centre (CAC), a 24-hour Free Trade Zone (FTZ) with simplified customs for transfer and clearance of goods. The nine airfreight terminals have an annual capacity of 3 million tons per year. Ini- tially using top-level customer service as a calling card, has now grown to establish itself as one of the lead- ing airlines in the world, comprised of a modern 104 aircraft fleet with cutting-edge fuel efficiency. New developments for the 1,080 hectare Changi East are underway, where a third commercial runway and Terminal 5 will be Image: Bell Image:

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

operational by the mid-2020s. The target is to double passenger handling capacity to 135 million per year. This region will be “ The industry is currently moving to- wards a SMART factory concept, adopting the economic center of gravity for at least automation and data driven systems to stay competitive in today’s challenging the next 20 years as the potential of devel- environment. oping nations, such as Myanmar, Cambo- dia, Laos, , among others, is vast. Navigating a challenging landscape Soh Chee Siong, CEO, JEP Precision Engineering ” on the continent with the Himalayas and other mountain ranges, a general lack of infrastructure and safety concerns such as piracy and the South China Sea dispute, We want to establish more brand and technology owners in the industry. To aviation is the main solution for mobility. “ support this, we aim to work with the industry to facilitate companies’ diversification “If we attempt to go by sea, we have the towards the aerospace sector through capability development and facilitation of typhoon seasons and also piracy problems, partnerships. which we are trying to solve[...] The only way to move the masses feasibly is by air. There is no driving or sea-route alterna- John Lu, Director of manufacturing & engineering, SPRING Singapore ” tive,” said Liang Jerry, executive VP for Excel Aerospace. Although Singapore has found a way to sociation is exploring the design and con- play a role in the sector. Certainly, with the position itself as the regional hub in the struction of micro- and nano- satellites, country’s investment in smart technologies MRO and primarily civil aviation markets, as well as Earth-observing and telecom- as well as new space technologies, Singa- the country has also established goals to munications applications. With a solid re- pore is positioned to maintain a leadership play a niche role in the new space race. mote-sensing department, Singapore will position within the industry for many years The Singapore Space and Technology As- continue to develop new technologies to to come. ▬

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Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

How important is the aerospace industry expand on this and why you believe it for the country’s global standing in the is important? region and what are your key objectives The EDB works in collaboration with its for the aerospace industry for the next sister agency, A*STAR (Agency for Sci- few years? ence, Technology and Research), on tech- Aerospace is a strategic sector for Singa- nology innovation. Together we coordinate pore given our focus on advanced technol- the strategic technological investments ogy and manufacturing. The EDB’s aim is Singapore must make in order to keep our to continue positioning Singapore as a flag- lead in aerospace. We are currently looking ship aerospace hub within the Asia Pacific at the application of robotics, automation, region, becoming more competitive and data analytics and additive manufacturing. innovating in MRO and manufacturing. In the nearer term, we are focused on in- Singapore holds 10% of the global mar- novations and technology that would make ket share in MRO. If we look at the strong Singapore more competitive. This could in- growth in traffic and demand in the region clude adapting existing technology to aero- in upcoming years, we are in a strong po- space application. In the longer term, the sition to capture that growth in MRO and vision is for Singapore to gain the capabil- Tan Kong manufacturing. We need to work in collab- ity to design and engineer new products and oration with OEMs that have the technol- solutions for the market. We are encourag- Hwee ogy to set up operations in our part of the ing our research institutions to collaborate world to raise our production capacity and with companies to do that. Technologies productivity in the supply chain. We have of interest to Singapore include predictive made substantial investments in technol- maintenance, Unmanned Aircraft Systems ogy and innovation which are paramount (UAS), and aircraft electrification. to Singapore maintaining its leadership in 12 the region. What is the future for UAV’s in the country? Director Transport Engineering What are the EDB’s key targets with UAVs are potentially disruptive and as a SINGAPORE ECONOMIC Changi Airport T5 and Seletar Aero- country we should try to facilitate their use DEVELOPMENT BOARD space Park? as long as they are safe to residents, air traf- Changi Airport T5 is part of Singapore’s fic and property. We will certainly see more long-term development strategy. There are of them flying in upcoming years by many currently three terminals at Changi. With agencies, for surveillance, parcel deliveries, the fourth one opening in 2018, together inspection and so on. We will learn how to with T5, our passenger capacity should be deal with challenges and risks posed by fly- at 135 million/year, more than double the ing UAVs through some test trials. Our Civ- amount today. We aim to take advantage il Aviation Authority of Singapore (CAAS) “ Technologies of interest to of the growth of and has signed a MoU with Airbus to experi- Singapore include predictive increasing wealth in the region to grow the ment with delivery drones. This project is maintenance, Unmanned Aircraft aerospace industry as well. partly driven by Airbus’ R&D team in Sin- Land has been allocated within the new gapore. The CAAS is interested in under- Systems (UAS), and aircraft airport for an industrial zone which will standing the risks posed by the use of these electrification. be launched in the mid-2020s. Until then, UAVs, the benefits they can bring and how Singapore will continue to use Seletar we should adapt our regulations, which is Aerospace Park as the location for both why they are also partnering with the EDB runway-dependent and non-runway-de- on this process. The EDB’s interest is in en- ” pendent aerospace industrial operations. To couraging innovation and remaining at the date, 60% of Seletar’s 160 hectares of in- forefront to capture economic opportunities dustrial land have been committed. The de- that might arise from UAVs. Experiment- velopment of the Park and the new Changi ing and understanding are the first steps T5 underscores our strong commitment to towards the eventual adoption of technolo- growing the aerospace industry. gies. If companies are interested in carrying out trials and development activities here, The EDB has a strong push for imple- the EDB would be interested in talking to menting more robotics and automa- them. We will work closely with CAAS to tion within the industry. Could you make sure safety is not compromised.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

SPRING Singapore operates as a gov- working with partners like A*STAR, pri- ernment arm alongside EDB to support vate companies and local solution provid- the growth of various Singapore indus- ers to create more modular solutions that tries. Could you expand on SPRING’s are cost-effective and relevant. Modularity relationship with the EDB and the gov- is paramount given the necessary transi- ernment? tion into digital manufacturing. Opera- SPRING is responsible for helping Singa- tions must be interlinear so that they can pore enterprises grow and building trust in link up at various stages of the production Singapore products and services. Though chain. SMEs that are on-board with new the EDB is the lead agency for the coun- digital manufacturing technologies, will try’s aerospace industry, SPRING works be well positioned to meet future customer alongside them to ensure that local busi- requirements. nesses can expand, whether they are SMEs Technology is progressing at a rapid pace. or micro-enterprises. The organization In three to five years, cutting-edge opera- also works alongside businesses to help tions today might be obsolete or modified them reach revenue milestones and em- then, even for emerging capabilities such bark on their journeys to becoming large as additive manufacturing. The new indus- enterprises and international players. try trends will be a bit volatile in upcom- John Lu ing years and we have to learn to manage What is the importance of aerospace it. Each enterprise will have a different sector for SPRING? risk appetite, but as a government agency, Although SPRING assists businesses SPRING has to continue encouraging and from different industries across the board, pushing companies to be at the forefront we maintain a strong focus on growing of the race. Pushing growth is paramount the aerospace sector. Most of the enti- for Singapore’s goal of positioning itself as ties that SPRING works with and assists a regional aerospace hub. Being frontrun- are precision engineering companies sup- ners means taking some risks. Investment porting the aerospace industry. There are in stages is the way forward. If SMEs wait 13 Director Manufacturing & Engineering currently 2,700 companies in this field. for technology to mature, it will be too SPRING SINGAPORE Though not all are focused on aerospace, late. We must create balance between get- we hope to move some into the industry ting on-board early and taking it in stages. as opportunities become more evident and relevant. Singapore has a strong existing What are SPRING’s key targets over base of companies which could develop the next 3-5 years for the Aerospace In- into aerospace suppliers and product own- dustry? ers. SPRING will continue to work with We aim to establish more brand and tech- the companies to capture opportunities to nology owners in the industry. To support build up innovation and brand-ownership this, we aim to work with the industry to in SMEs. This will help them to break into facilitate companies’ diversification -to “ foreign markets and take their operations wards the aerospace sector through ca- internationally. pability development and facilitation of Singapore has a strong existing base partnerships. of companies that could develop Which trends and changes can we ex- We want to see more SMEs on-board into aerospace suppliers and product pect to see in the long term within the with efforts towards the build-up of digi- owners. SME market segment in terms of digital tal manufacturing in Singapore. It is im- manufacturing, Industry 4.0, and auto- portant to work with the industry to help mation? SMEs become Digital Champions to take Disruptive technologies are fundamen- the lead in this. Working with a Singa- ” tally modifying the global business envi- pore partner is also something we want ronment and SPRING is investing heav- to encourage, in order to leverage on our ily within the digital manufacturing and knowledge on the ground. Most SMEs are automation realm in order to prepare the present in regional markets and we want market for the future. Certainly large mul- them to continue excelling both locally tinationals are taking measures to become and internationally. frontrunners in these areas, but we want to We look forward to working with partners ensure that the gap experienced by SMEs and SMEs from the aviation industry that is narrowed. SPRING has a strong role to share the common vision to grow Singa- play, not just by providing support, but by pore into a world-class aerospace hub.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations FACTSHEET Global Business Reports

Facts and Figures Asia’s Aerospace Outlook

Growing Economy Growing Air Travel Growing Fleet Size 66% 6.1% 1/3 of the global middle projected annual air of global aircraft deliveries class by 2030 traffic growth for APAC over the next 2 decades

4th Largest 37% travel market in the of global fleet by 2034, Largest world within the next nearly double that of ASEAN’s economy two decades next largest market globally by 2050

Source: Economic Development Board, Singapore

Singapore’s Aerospace Industry

10,000 Value Added 20-year CAGR: Total Output Total Employment 8,000 Output ~8% 6,000 >S$8B 20,000 4,000 14 Amongst the largest in Asia; Pool of highly skilled & 2,000 mix of 90% MRO & 10% industry 0 manufacturing aligned talent; 80% Locals

P Maintenance, Repair and Overhaul (MRO) Number of Aerospace Companies P Engine MRO 130 Aftermarket Services P One of the largest, most Manufacturing diverse concentrations of P aerospace companies in Asia Research & Development P Source: Economic Development Board, Singapore

Annual Growth in Industrial Production Index GDP Share of Manufacturing

% % 35 35 9 30 30 25 25 20 20 15 15 10

10 5 0 5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0 Manufacturing Industry 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -5 Source: The Department of Statistics Singapore Source: The Department of Statistics Singapore

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

turing processes,” said Prof. Louis Phee, chair, School of Mechanical & Aerospace Cutting-Edge Research Engineering, NTU. The research hub combines NTU’s leading infrastructure, cutting-edge engineering & Development and science research, and internationally recognized faculty with Rolls-Royce’s in- By Elisa L. Iannacone and Alice Pascoletti dustrial capabilities, leading engineering services and international reach. The Brit- ish aircraft engine manufacturer is also exploring power and control technolo- As a part of the National Research, Innova- aerospace industry. On a larger scale, ST gies with NTU’s School of Electrical and tion & Enterprise 2020 Plan, a record S$19 Aerospace has acquired leasing aircraft, Electronic Engineering, and software de- billion (US$13.4 billon) are to be invested which can then be converted from pas- velopment with the School of Computer in the Singapore Research and Develop- senger to freighter, and ultimately used for Science and Engineering. “Rolls-Royce ment (R&D) sector over the next five years, parts at the end of their life-cycle. invested £1.2 billion (US$1.5 billion) on with the aerospace industry as one of the Rapid changes in the aerospace landscape R&D in 2015, and has established a net- eight key targets for funding. With a strong are forcing companies to innovate and cre- work of 31 University Technology Centres aim to diversify the heavily MRO-prevalent ate alternate sources of revenue. With new worldwide,” said Bicky Bhangu, director market, advanced manufacturing and engi- generation air fleets entering the market, Singapore, Rolls-Royce. neering have been targeted as key techno- the need for MRO services will diminish NTU also has a S$5 million (US$3.5 mil- logical fields to focus on. Tay Kok Khiang, in frequency. “The trend of the MRO is lion) partnership with Leonardo for heli- chairman of the Aerospace Programme at going to be driven by the increase in the copter aerodynamics. “These major in- the Agency for Science, Technology and new generation aircraft, which will dou- ternational players see great potential in Research (A*STAR), Singapore’s lead pub- ble every three years. The impact will be Singapore and know that our infrastructure lic agency heading R&D processes for the strongly felt given that maintenance needs is cutting-edge. I would like investors to advancement of scientific discovery and have diminished significantly for these air- recognize this great potential,” added Prof. technological innovation, said: “We collab- craft. The 787 needs maintenance every 12 Louis Phee. 15 orate with partners in both the public and years, whereas older models needed it ev- With 30 researchers, the NTU Satellite Re- private sectors and catalyze research in the ery six years,” said Lim Serh Ghee, presi- search Center, which sits under the School industry through joint innovation.” dent, ST Aerospace. of Electrical and Electronic Engineering, With 5,400 staff, A*STAR plays a strong Rolls-Royce has collaborated with Nan- is also pushing Singapore’s space R&D to role in advancing the country’s work- yang Technological University (NTU) by the forefront. NTU’s focus on communi- force through a series of scholarships and making a S$75 million (US$53 million) cation payload started years ago alongside talent development programs. The en- investment for continued R&D at the the University of Surrey. After building the tity also runs a Research Consortium for Rolls-Royce@NTU Corporate Lab. “It is XSAT, their first satellite, Singapore Tech- Aerospace-focused R&D, which includes a major long-term partnership where we nologies Satellite Systems was created 15 lead commercial aircraft and engine have set up three large research centres as the country’s first commercial satellite manufacturers, specialized aviation ma- over a five year plan […]. We are focusing company. NTU currently holds and moni- terials companies and enterprises such as on manufacturing and re-manufacturing tors seven satellites in space. Airbus, Boeing, , Bombardier, GE, instead of throwing away used aircraft Singapore is highly interested in the de- Pratt & Whitney, Rolls-Royce, Honey- parts, to save costs and improve manufac- velopment of small satellites to position well, SIA Engineering and ST Aerospace. “Launched in 2007, the consortium under- takes pre-competitive research to address A*STAR is globally unique given that challenges in the Aerospace Industry,” “ it operates like a government funded added Tay Kok Khiang. The consortium has carried out over 100 University. They have capabilities in almost projects to date. A*STAR’s private-public every industrial sector, invest heavily in Advanced Remanufacturing & Technol- R&D, and develop collaborations with ogy Centre (ARTC) focuses on R&D for international companies. They leverage surface enhancement, repair and restora- their technical infrastructure and couple tion and product verification. The goal is to it with world class R&D capabilities, and develop processes that can be immediately bring together leading industry players in adopted by the industry at large. Finding a collaborative initiatives. second life for products that have reached their natural end-of-life is a strategy being developed by many companies within the Tom Gentile, CEO, SPIRIT AEROSYSTEMS”

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations EDITORIAL Global Business Reports

itself as an expert in niche space technolo- gies. Though the young space industry in the country does not have the capacity to “ Whereas regulation was initially a driving force behind the industry, we are become a leader in all-things space, it has now facing a situation where rules or regulatory frameworks have to catch up with the cutting-edge technology capabilities technology. This will continue to be the trend in the future. The fundamental driver and necessary infrastructure to position for these technologies to be developed is cost. Roughly, half of the investment itself as a highly specialized leader within budget in our industry goes into reducing cost. VR can, for example, assist by the space market. Thales in Singapore has omitting physical presence, whether it means maintenance training or airport established a Space Centre of Excellence familiarization, and so help reducing classroom, travel and other costs. for Research and Technology (R&T) and has partnered with NTU to create S4TIN (Smart Small Satellite Systems), a joint lab Tom Vandendael, Senior VP, Regional Management, LUFTHANSA SYSTEMS” for the development of nano-satellites that leverages on CINTRA, another joint lab between NTU, Thales and CNRS. Their Industry leaders have taken an active role development of a heavy fuel diesel engine focus is on nano-electronics and nano- in the development of R&D programs to for Unmanned Aerial Vehicles (UAVs). photonics. “We are always on the lookout ensure Singapore can maintain its leading The Singapore government’s push to de- to develop collaborations with other re- position as an R&D hub in the region. SIA velop new technologies, national IP and search institutions and organizations,” said Engineering, ST Aerospace, and DSO Na- innovations for the aerospace industry is Dr. Erick Lansard, vice-president for Tech- tional Laboratories joined forces with the paving the way for a bright and success- nical and Space Development, Thales. Department of Mechanical Engineering ful future for the country. Singapore plays Thales in Singapore has also established at the National University of Singapore host to the headquarters and R&D func- the first regional Thales Innovation Hub in (NUS) to launch the Centre for Aero- tions of many lead international industry the country to create innovative disruptive space Engineering (CAE) in 2013. With players. This is positioning the country as solutions. “The target is not only to fly pro- aerospace-focused research, education an aerospace R&D hub. With the increase totypes, but also to develop new industrial and outreach activities, CAE provides in- in manufacturing and space activities in systems that could be manufactured lo- novative solutions for the industry. Their the country, as well as the aim to maintain 16 cally in partnership with local actors, and research projects range from the study of a leadership position in the aerospace in- new applications and services,” added Dr. surface manipulation for drag reduction dustry, the R&D sector will only continue Lansard. and composite damage and repair, to the to grow. ▬ Image: Rolls-Royce Image:

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Tay Kok “ A*STAR Aerospace Research Consortium was launched in 2007, and undertakes pre- Khiang competitive research to address challenges in the aerospace industry. Through this platform, members can leverage on A*STAR’s research Chairman resources and state-of-the-art infrastructure. A*STAR AEROSPACE PROGRAMME AT THE AGENCY FOR SCIENCE, TECHNOLOGY AND RESEARCH ”

Could you describe A*STAR’s core focus Aerospace Program, and the flagship for this improvement on the current off-line period- and operations in Singapore? effort is the A*STAR Aerospace Research ic checks, is another example. In coatings, The Agency for Science, Technology and Consortium. Launched in 2007, the Consor- we research super-hydrophobic materials Research (A*STAR) is Singapore’s lead tium undertakes pre-competitive research to as well as ice-phobic coatings. There is an public agency that spearheads economic- address challenges in the aerospace indus- interest in Direct-Write technologies, which oriented research to advance scientific try. Through this platform, members can le- will allow for efficient and cost-effective discovery and develop innovative technol- verage on A*STAR’s research resources and health monitoring of modern aircraft. We ogy. With 5,400 staff, research is largely state-of-the-art infrastructure. undertake research to improve internet con- organized under two entities: the Science The consortium engages in all aspects of nectivity and capacity to meet the needs of and Engineering Research Council and the aerospace R&D from advanced materials, modern society. Biomedical Research Council. The research manufacturing processes and automation, 17 entities are primarily located in Fusionopo- information and communication, inspection What are your views on the regulatory lis and respectively. and non-destructive testing, computational framework which supports the aero- We collaborate with partners in both the modeling and dynamics. Starting with just space industry? public and private sectors and catalyze re- four founding members, the consortium The aerospace industry, from an engineer- search in the industry through joint innova- now has 15 members, which includes many ing and MRO perspective, is highly regu- tion. The science and engineering research of the leading commercial aircraft and en- lated and international in nature. Although entities conduct research within clusters gine manufacturers, component and special- there are country to country nuances, most such as Electronics, Chemicals, Marine and ized aviation materials companies, and lead- of the Western World practices are regu- Offshore, MedTech, Biologics and Aero- ing local enterprises. To-date, the A*STAR lated under the Federal Aviation Adminis- space. Our research focuses on creating Aerospace Program has undertaken more tration (FAA) and the European Aviation economic growth and jobs, and enhancing than 100 multi-disciplinary projects. Space Agency (EASA), and the two are lives. We work closely with the Economic largely similar in requirements. Development Board of Singapore to sup- Could you outline some of the projects Work done in Singapore has to meet the port the industry in Singapore and collabo- that have been undertaken by A*Star? requirements of the Civil Aviation Authori- rate with global partners. A*STAR plays a Some of the projects include research into ties of Singapore (CAAS) and, depending key role in nurturing and developing a ro- new materials, ranging from the treatment on the market where the work is intended bust and diverse innovation workforce for of pipelines to prevent coking, to new mate- for, it usually has to meet the FAA’s or the Singapore’s research, innovation and en- rials with special properties useful for avia- EASA’s requirements as well as the coun- terprise ecosystem through our scholarship tion. This includes conductive composites, try requirements of the end-user. These and talent development programs. which may one day replace the current ap- requirements relate more to engineering proach of protecting composite structures developments and MRO. Certification What is the importance of the aerospace of the latest generation aircraft against would be done at the product development sector for A*STAR and what is the vision lightning strikes. stage. To facilitate recognition of work for the sector moving forward? In electronics, we are innovating designs done in Singapore, for example, the CAAS The aerospace sector is an important sec- for harsh environments, such as high-tem- has a Bilateral Aviation Safety Agreement tor for Singapore which has seen a steady perature packaging, in order to meet the (BASA) with the FAA which outlines a mu- growth of 8.6% CAGR over the last 20 future needs of "more-electric aircraft”, tual acceptance of design and production years and employs some 20,000 staff, 90% for which current designs are inadequate. certifications. Companies which have work of which are skilled jobs. A*STAR collabo- Smart sensors that enable continuous and certified through the CAAS might benefit rates with the aviation industry through its on-line monitoring of engine oil levels, an from this cross-recognition.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Could you outline the main objectives of world’s major OEMs have also chosen to the association? make Singapore their significant base for The Association of Aerospace Industries is addressing the Asian market. 13 years old and we have about 130 mem- A growing sector is advanced manufactur- bers. Our membership comprises OEMs, ing. Rolls-Royce assembles and tests Trent MROs, small and medium-sized enterprises engines in Singapore. Both Rolls-Royce and a full range of service providers. It is and Pratt and Whitney also manufacture fan a reflection of the composition of the aero- blades here. The supply chain around these space industry in Singapore. Our mission activities is creating a positive spin-off lo- is to promote Singapore as a leading aero- cally, as well as, to other countries in our space hub, for the benefit of all our mem- neighborhood. bers and their business competitiveness. What we do can be summarized in three What is the advantage of operating in points: Firstly, we serve as the voice of in- Singapore as opposed to other markets dustry and play a role in policy advocacy. in the Asia-Pacific Region? We also work with the government on di- The strong advantages for Singapore have rections for the future development of the been our trusted brand, open economy, lo- industry we represent. The second point is cation, connectivity, industrial base, com- about developing the aerospace community, prehensive aerospace cluster and skilled SIA Kheng because we believe there are many oppor- talent. Our government invests very heavily tunities to collaborate and draw synergies in education and research and development, Yok from one another. Thirdly, we facilitate in support of industry. We also have a very businesses through organizing overseas strong OEM presence that differentiates us missions, exhibitions and helping with mar- from others. The EDB estimates we com- ket connections. mand a quarter of the regional MRO mar- ket. Our hope would be to continue to grow What kinds of members does the Asso- and extend our market reach. 18 ciation look for and how can they join? We welcome members who can contribute Singapore’s manpower can often be a Chief Executive as well as benefit from being a part of the challenge to operations given the incred- ASSOCIATION OF AEROSPACE AAIS community. The core membership re- ible demand and constant turn-over of INDUSTRIES (SINGAPORE) mains anchored by aerospace OEMs, MRO employees. How does the country aim to and suppliers. But we are also open to mem- navigate this roadblock? bers who provide services to the industry. In terms of growing the country’s skill-base More recently, this also includes companies and manpower, there is a very strong spirit with expertise in applying technology to of cooperation between government, em- aerospace – in fields such as data analytics, ployers and unions. This tripartite relation- digitization, robotics and Industry 4.0. ship is the cornerstone of decades of harmo- nious industrial relations in Singapore. The “ Singapore’s aerospace industry Which are the current trends you have industry and the educational institutions structure is quite unique, with the observed in the Singapore Aerospace also work very closely together to ensure heaviest concentration of MRO market and which segments do you an- we develop industry-ready graduates. This ticipate to experience strong growth? has resulted in a very responsive and far- activities in Asia-Pacific. The Singapore’s aerospace industry structure is sighted education system that anchors our Singapore Economic Development quite unique, with the heaviest concentra- competitiveness as a country. Education Board (EDB) reports that MRO tion of MRO activities in Asia-Pacific. The and training opportunities do not just stop comprises 90% of the industry Singapore Economic Development Board upon graduation from school. There is a output. (EDB) reports that MRO comprises 90% now a framework and system that enables of the industry output. This has arisen from everyone to be re-skilled and upgraded Singapore’s traditional role as an air trans- throughout his/her working life, in order to port hub giving rise to two major domestic adapt to changes in the workplace. It is not ” MRO players - ST Aerospace, with roots correct to say that there is a constant turn- in the defense sector, and SIA Engineering over of employees. The aerospace industry Company (part of the Singapore Airlines in particular, is known for its ability to re- group). ST Aerospace is now ranked one tain its employees and provide good career of the world’s largest third party MROs opportunities. In fact it is the sector with and SIA Engineering Company has an ex- one of the highest percentages of local em- tensive network of 26 joint ventures. The ployees – around 80%.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

Bachelor degree programs in mechanical and aerospace engineering, as well as a Educational Institutions range of graduate programs. With a rate of 130 graduates per year, MAE is also the By Elisa L. Iannacone and Alice Pascoletti home of the Air Traffic Management -Re search Institute, which was created along- side the Civil Aviation Authority of Singa- pore, to continue positioning the country With a projected growth of three times the able. With over 40 years operating in the as a strong location for Air Traffic Man- current air fleet by 2031, countries across country, the Singapore Institute of Aero- agement (ATM). The school is currently Asia are racing to establish strong educa- space Engineers also decided to found a developing Air Traffic Control (ATC) tional institutions to fill the projected gap training school for the industry in 1999, regulations for UAVs. “We are now devel- in the relevant skills. With over 1,700 which is how the Air Transport Training oping the necessary R&D to ensure we lay aerospace graduates per year, the Singa- College (ATTC) emerged. The ATTC has proper ATM laws for the future, delineat- pore government is investing heavily in established a training complex at Seletar ing airways and placing adequate no-fly- developing the professionals of the future, Aerospace Park with a full hangar that zone boundaries,” said Prof. Louis Phee, and has a strong relationship with the aero- has access to the Seletar Airport runway. chair, School of Mechanical & Aerospace space industry and country’s educational “In these 17 years we have trained more Engineering, NTU. institutions. “This tripartite relationship is than 40 MBA students, over 300 bachelor Singapore will continue working along- the cornerstone of decades of harmonious degree students, 300 diploma students and side the aerospace industry to develop industrial relations in Singapore,” said SIA over 4,000 certificate students,” said Chow the necessary curricula to train gradu- Kheng Yok, chief executive, Association Kok Wah, general manager, ATTC. ates who can work to the highest stan- of Aerospace Industries, Singapore. The School of Mechanical and Aerospace dards and remain at the forefront of the Singapore has world-class universities, Engineering (MAE) at NTU offers two sector. ▬ such as Nanyang Technological Univer- sity (NTU) and the National University of Singapore (NUS), as well as various We believe that getting involved with partnerships with universities and polytechnics that are investing in strength- “ 19 research institutions will help nurture talent and inspire the next generation of ening their facilities. The Singapore Poly- future engineers and scientists. This strong link with the local institutions will help technic has a four-story Aero Hub that potential engineers understand how their academic excellence can be applied in the houses an aircraft hangar with a Hawker workplace. We take around 100 interns every year into our Singapore workforce. HS125-700A, King Air B90, A4SU Super Skyhawk and a Bell UH-1H Helicopter. They have also created laboratories and an R&D center to assist the students receiv- Bicky Bhangu, Director, SINGAPORE ROLLS-ROYCE ” ing a diploma in Aeronautical Engineer- ing (DARE) and a diploma in Aerospace Electronics (DASE). The R&D Center has a flight simulator that can recreate an F16 “ I have concerns about the industry in SEA going too fast. The training cockpit, cockpit and F1 race- of pilots and cannot keep up given that the business has grown car cockpit. It also has an Airbus 320 flight too fast.[…]Singapore is well placed to provide the training facilities required to simulator and maintenance trainer. They meet this demand for engineers and technicians. But the region is still falling short are also focused on the development of experiencing fast growth with insufficient technical education infrastructure to vertical take-off and landing (VTOL) vehi- support it. cles, intermeshing and co-axial Unmanned Aerial Vehicles (UAVs) and hybrid rocket propulsion systems. Lim Yeow Khee, President, SINGAPORE INSTITUTE OF AEROSPACE ENGINEERS” Temasek Polytechnic invested S$30 mil- lion (US$21 million) to create the 6,000 sqm Temasek Aviation Academy (TAA), as an addition to the School of Engineer- The main roadblock to the private aviation’s operations is the huge lack of ing, making it the largest dedicated avia- “ tion training facility in the country. The information sharing within the industry segment. WOA provides a platform where TAA has an aircraft hangar with a Hawker pilots, operators and owners can collaborate and share information about crossing Siddeley 700A private jet, a closed-loop borders or receiving support. wind tunnel and a VR studio. The poly- technic also acquired full-flight simulators and the latest training equipment avail- Yeow Meng, Managing Director, WINGSOVERASIA ”

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations FACTSHEET Global Business Reports

Locations of Educational Institutions

6

5

2 4 9 7

8 1 3

20

Over 1,700 1 National University of Singapore Aerospace-trained graduates annually 2 Nanyang Technological University Close collaboration with industry to deliver industry-relevant training and education 3 Singapore Polytechnic

US$ 13.4 Billion 4 Temasek Polytechnic to be spent on R&D over the next 5 years 5 Nanyang Polytechnic Investments by Institutes of Higher Learning 6 Republic Polytechnic

Singapore Polytechnic Opening of four-story Aerohub (Q12016) 7 Ngee Ann Polytechnic Temasek Polytechnic Opening of S$30m Aviation Academy to train 8 Singapore Institute of Technology students and working adults

9 Singapore University of Technology and Design

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Could you outline the School of Mechan- The Singapore industry is gradually shift- ical and Aerospace Engineering’s core ing from being primarily focused on MRO mission and future outlook? to becoming a world leader in cutting-edge The School of Mechanical and Aerospace technologies and innovations. This trend is Engineering (MAE) at Nanyang Techno- going to take some time and will require a logical University is a recognized interna- lot of perseverance on part of the industry tional leader. We offer two Bachelor degree and the government. NTU is doing its part programs in Mechanical and Aerospace En- by training the best people who can rise to gineering and various MAE graduate pro- the challenge. Agencies like the Singapore grams. The aerospace program that we run Economic Development Board are bring- at NTU started 12 years ago. It was the only ing in all the large industry players, such as aerospace engineering course in Singapore Rolls-Royce and Pratt & Whitney. It is am- for many years. We are also proud to say ply clear that these multinationals are here that the number of students we are teach- for the long run. It is no secret that presently ing is steadily increasing. We started with we are in a bit of a slump, but we know the about fifty students per year and have now industry will pick up again. Aircraft sales reached one hundred and thirty per year. have increased in recent years. Though they Prof. Louis Our goal is to equip the leaders of tomor- will not require much maintenance to begin row with all the necessary skills and tools with, they inevitably will in the long term, they need in order to continue developing and when they do, Singapore will be ready Phee the Singapore and regional aerospace in- to serve them. dustry. We strive to continuously innovate and grow our academic excellence through Could you describe some of the univer- many R&D projects as well as international sities national and international collab- collaborations. orations? MAE houses the Air Traffic Management The collaboration that we have with Rolls- Research Institute, which is jointly set up Royce for continued R&D is very signifi- 21 Chair together with the Civil Aviation Author- cant to NTU. It is a major long-term part- SCHOOL OF MECHANICAL & ity of Singapore, with the aim of turning nership where we have set up three large AEROSPACE ENGINEERING, Singapore into a strong hub for Air Traffic research centers over a five year plan. The NANYANG TECHNOLOGICAL Management. Among the R&D projects first investment involved S$75 million. We the school is exploring, there is the future are focusing on manufacturing and re-man- UNIVERSITY of airport terminals at Changi as well as ufacturing instead of throwing away used looking into the air traffic management for aircraft parts to save costs and improve drones. manufacturing processes. Rolls-Royce is also collaborating with NTU’s School of What kinds of new developments is Sin- Electrical and Electronic Engineering to “ gapore looking to implement within the explore power and control technologies, The Singapore industry is gradually UAV realm? and the School of Computer Science and shifting from being primarily Both UAVs and autonomous cars are im- Engineering for software development. focused on MRO to becoming minent. For Singapore, however, imple- Moving forward, we will be looking into a world leader in cutting-edge menting aerial deliveries is a big challenge. other areas. technologies and innovations. There are many obstacles to overcome and We also have a collaboration with Leon- a manpower shortage that has to be ad- ardo, a global high-tech company for aero- dressed, so one viable way to achieve this space, defense and security, where we have would through the use of drones coupled an on-going S$5 million partnership on with autonomous vehicles. We are still at aerodynamics for helicopters. These major ” the R&D stages, but the universities and re- international players see great potential in search centers are all looking into the direc- Singapore and know that our infrastructure tion of autonomous intelligent vehicles. All is cutting-edge. I would like investors to these novel ideas are now being explored recognize this great potential. Singapore at NTU. and NTU are already researching and de- signing satellites, leading the way in terms Singapore’s aerospace industry is com- of innovation and R&D. Thus Singapore is posed of a 90% MRO presence. Could a place where companies can plan for the you describe the trends you notice for the long-term and know they have a reliable industry moving forward? partner to support them.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations Image: ATR GBR • Industry Explorations • SINGAPORE AEROSPACE 2017 AVIATION

"The GDP growth in Asia pacific is the most pronounced anywhere in the world. It is our objective to harness this growth into a sustainable future for our customers. Growth is certainly part of our plan and this facility in Singapore was designed for scaleability."

Sameer A. Rehman, Managing Director Asia Pacific, Bell Helicopter Asia EDITORIAL Global Business Reports

pace of 4.1%, with China and India as the main drivers for the continent. Currently Pushing Singapore’s holding a 31% share of the world’s GDP, Asia is projected to grow to carry a 39% of global GDP by 2035, due to the rapid Competences forward growth experienced in emerging markets and growing middle class in the region. Growing alongside the wealth contained through Regional within the continent, the business aircraft industry segment has experienced a steady rise over the last 10 years. A prime example Competition is Bombardier, with its Learjet, Challenger and Global business jets, and plans to re- By Elisa L. Iannacone and Alice Pascoletti main as the leader in this class of mobil- ity for the SEA region. Its goals are tied to the Global 7000 business jet’s entry-into- service in the second half of 2018. “This will bring a class-defining product to mar- According to Boeing’s Current Market ther growth given the anticipated economic ket that will capture much of the projected Outlook, 3,860 new , valued at middle class growth,” said Brendan Sobie, growth within business aviation,” said Si- US$565 billion, will be required in South- chief representative Southeast Asia and mon Wayne, general manager, Singapore east Asia in the next 20 years, along with a chief analyst, CAPA – Centre for Aviation. Service Center, Bombrdier Aerospace Ser- need for nearly 250,000 commercial airline Despite an on-going growing demand, the vices Singapore. The Global 7000 will fly pilots and just under 270,000 technicians. South East Asia (SEA) markets have ex- across the globe and can at times reach a “China will lead the region with a demand panded so ambitiously that overcapacity speed of up to M 0.925. for 111,000 pilots and 119,000 technicians, is starting to become a real issue. Airlines Bell Helicopter is currently developing followed by Southeast Asia with 62,000 from SEA, North Asia and the Gulf states the first commercially certified fly-by-wire 24 pilots and 67,000 technicians,” said Ralph have created an environment of increased helicopter, the Bell 525 Relentless. With a L. (Skip) Boyce, president Boeing South- competition, creating an imbalance be- capacity of up to 20 passengers and two east Asia. tween demand and capacity, lowering pilots, the electronics and actuators con- Emerging markets, such as , have their profit margins. “The profit margin trolled helicopter aims to “take the world been the ideal launching pad for Low Cost for airlines in SEA in 2016 were below the by storm,” according to Sameer A. Rehm- Carriers (LCCs), such as LION Group, to industry average and the Asia Pacific aver- an, managing director, Bell Helicopter. flourish. “The most extreme growth we age. Profits are likely to fall in 2017 due to Despite the global downturn of oil prices, have detected stems from the Indonesian overcapacity, which is pressuring yields, helicopter OEMs in the region have main- market, with over 400 aircraft on order and and rising fuel prices,” added Sobie. tained steady operations. “Composite the manpower requirements that go along This challenging environment could per- Technology International (CTIPL) did fac- with those,” said Tom Dowdall, chief ex- sist well into 2018 given the low-cost busi- tor in oil prices into the annual projection, ecutive officer, Aviation Labour Group. ness model that is offering passengers the but we discovered that the demand did not Despite slowing down, Air Asia also con- opportunity to fly with smaller operators in diminish. Companies such as Airbus He- tinues growing in the region. “According emerging markets and are increasing their licopters, Leonardo Helicopters and Bell to the annual report, more than 75% of the number of long-haul flights. Helicopter have described steady heli- airplanes needed will be for single-aisle Although the severe overcapacity obsta- copter sales in the region,” said Lee Swee airplanes, as we continue to see a rise in cles faced in 2014 were seemingly over- Meng, general manager, CTIPL. the number of low-cost carriers as well as come in the last two years, the outlook for With the capacity to repair helicopter strong annual traffic, with growth rates of 2017 is one of further challenges. Singa- rotor-blade repairs, CTIPL is looking to 6.4% for Southeast Asia,” added Ralph L. pore Airline’s December 2016 operating continue growing its international client (Skip) Boyce. results showcase that although the Passen- base. With many Singapore-based compa- Although the rate at which LCCs has grown ger Load Factor (PLF) was higher for East nies looking to strengthen their ties to the over the past 15 years has decreased, there Asia given the holiday season demands, the Asia-Pacific region, the government has is still high-expectation for increased de- PLF for the South West Pacific declined as strategized to be prepared for the increased mand. However, given the rising competi- capacity growth outstripped demand. “The demand. SAP continues attracting industry tion in the region, many LCCs are focused huge order book, which consists mainly of leaders and Changi Airport is prepared on merely trying to cover their operational orders from LCC groups, indicates the cur- to capture the projected aviation growth costs. “The rate of LCC growth in South- rent overcapacity situation is not about to in the region. The Changi Airport expan- east Asia has slowed over the last couple go away anytime soon,” added Sobie. sion includes a third commercial runway of years but the overall market continues to Asia’s economic growth has surpassed and a new terminal. Optimizing the cur- expand and there are opportunities for fur- the global rate by 2.9%, with an annual rent airport infrastructure is on-going in

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

the country, which also marks a strong dif- Singapore has also positioned itself as a tivity solutions and products for industrial ference from , also considered strong aircraft leasing and financing hub in networking. to be an aerospace hub in the continent. the region. The government has developed Singapore’s ease of operations’ benefits Though both abide to a comparable regula- attractive tax structures and incentives extends across the value chain, impact- tory environment, Hong Kong’s airport is for the sector, which was virtually non- ing even in-flight entertainment solutions already congested, particularly for business existent a mere 15 years ago. “In this short providers. The General Administration of aviation. “When the planning of that air- time, Singapore has become the Press and Publication (GAPP), previously port was done, they catered for what they of Asia in terms of aircraft leasing,” said known as the Ministry of Culture, acts as believed would be the largest private-jet Brendan Sobie. a film board censor that requires all films market possible, about 30 aircraft, whereas Back in 2006, BOC Aviation, previously to be played in-flight to be transcribed in there are well over 100 aircraft parked at the Singapore Aircraft Leasing Enterprise, full six weeks prior to being approved. the airport,” said John Riggir, vice presi- was the only leasing company operating in Singapore Airlines uses unedited cuts, but dent and general manager, JET Aviation. the country. It has since been purchased by certain airlines, such as Malaysian Airlines Despite the inevitable competition the Bank of China and held a successful and most Middle-Eastern carriers, require amongst the two hubs, many believe that it IPO. Global leasing companies that would the films to be re-edited. “In China we is through joint efforts that the best results generally base their offices out of Europe need to be sensitive to both the political are attained. “Surely, when it comes to air- or North America, are now shifting or ex- and cultural restrictions that may apply. lines passenger yield, there is clear compe- panding their operations into Singapore Our strongest challenge at the moment is tition as there is also competition from the given the level of support they receive digital communication with our Beijing Middle East, but I do not see Singapore as a from the country. office because of the ‘great firewall’ of country afraid of China. Historically these Banking structures for aircraft financing China,” said Pravin Jumabhoy, executive regions join hands, rather than just have are another indispensable factor for at- director, Images in Motion. straightforward competition,” said Tom tracting industry players into the country. Across the industry spectrum, from MROs, Vandendael, senior VP, Lufthansa Systems. Several have developed financing manufacturers and OEMs to service pro- Leading the way in airspace surveillance departments that support the airlines and viders, the general sentiment is one of trust given its geographical location, Singapore leasing companies in Singapore. Many law in the Singapore aerospace industry, as well has emerged and grown through both in- firms have also moved into the country to as in the government entities in charge of ternational and national collaborations. become a part of the growing leasing sec- fuelling the small island’s growth. Leading 25 This attitude is a part of Sinapore’s inter- tor. “FTS' main target customers are air- OEMs and suppliers that carry out manu- cultural fabric, and the country will con- craft leasing companies, given that most facturing activities in the country are being tinue to build strong ties within the region. airlines lease nowadays. All of the main encouraged to grow and continue develop- The Asian market is strongly OEM ori- aircraft leasing players are based here, ing their operations. Currently producing ented and Singapore is identified as a solid which makes our operations much easier engine casings, gears, bleed valves, and launching pad into the region. The speed and our customer-base easily reachable,” fan blades, as well as avionics computers, at which many companies have been able said Darrel Chua, general manager, Flight- among others, Singapore is well placed to to grow has a lot to do with Singapore’s ech Systems (FTS), a company that pro- continue expanding its operations outside ease of doing business environment, gov- vides wireless entertainment and connec- of the MRO realm. ▬ ernmental support and professional know- how in the industry. “Singapore has strong know-how as a country. We would have never been able to develop a company this Singapore has strong knowhow as a country. We would have never been able to fast in another country in Asia. The infra- “ develop a company this fast in another country in Asia. The infrastructure makes it structure makes it easy, but so does the easy, but so does the engineering and technical capacity. engineering and technical capacity,” said Thibaut Campion, chief operating officer (Production), Sabena Technics. With over 20 years in the country, and Thibaut Campion, Chief operating officer (Production), Sabena Technics based in Hong Kong since 2008, JET Avia- ” tion has been growing steadily since China started purchasing large jets. The company has decided to make Singapore the center “ The Southeast Asia airline sector needs consolidation but is not about to get of its operations. “JET Aviation built a it. While the fundamentals of the market are attractive – including rapid economic new facility in 2014, which was added to and middle class growth – the level of competition is at times extreme and capacity our old hangar, and we are building a new levels irrational. hangar in Singapore now. Overall, we will grow to occupy a space of about 15 thou- sand sq m, which will make Singapore our Brendan Sobie, Chief Representative Southeast Asia and Chief Analyst, ” hub for Asia-Pacific,” said John Riggir. CAPA – CENTRE FOR AVIATION

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations FACTSHEET Global Business Reports

Seletar Aerospace Park Phasing Plan as at Jan 2016

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Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports FACTSHEET

Singapore Aerohub in figures Changi Airport Traffic

Latest Period Latest Data % Change (Y-o-Y) Previous Period Data % Change (Y-o-Y)

Air Cargo Handled (Tonnes) 2016 1,969,434 6.3 1,853,087 0.5

Aircraft Landings (Number) 2016 180,251 4.1 173,152 1.4

Civil Aircraft Arrivals, Departures, Passengers and Mail, Changi Airport, Annual

1976 1986 1996 2006 2009 2012 2015 2016

Aircraft Arrivals 32,710 36,514 83,345 107,092 120,184 162,349 173,152 180,251

Aircraft Departures na na 83,404 107,132 120,176 162,373 173,182 180,239

Passenger Arrivals 1,859,505 4,445,576 11,587,394 16,677,822 18,026,026 25,055,954 27,491,096 29,203,726

Passenger Departures 1,880,888 4,489,692 11,542,408 16,690,277 18,062,970 24,853,645 27,344,459 28,953,978

Passenger Transit 795,465 1,132,451 1,384,446 1,664,984 1,114,982 1,272,205 613,409 540,335

Source: Civil Aviation Authority of Singapore

Air Cargo Discharged by Region/Country of Origin, Annual 27 2016 More than 100 airlines

Total 1,083,999 flying to some380 cities South East Asia 163,745 in about 90 countries Indonesia 55,215 and territories worldwide. Malaysia 17,401 Philippines 11,401 53,440 Each week, about 7,000 flights Vietnam 20,292 land or depart from Changi, North East Asia 486,635 with more than 58.7 million China 152,348 passengers passing through the airport a year. Hong Kong 140,873 85,340 South Asia 71,894 Commercial Aircraft Movements at Changi Airport Middle East 39,980 400 Oceania 133,401 Europe 163,696 300 8,113 15,680 200 22,757

Number of Aircrafts 100 North America 19,010 Other Regions 3,059 0 2011 2012 2013 2014 2015 2016 Not Stated 2,579

Source: Civil Aviation Authority of Singapore Source: Changi Airport Group

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Could you provide a brief history of ATR success in the region. Today, ATR counts a internationally and describe the impor- fleet of 377 aircraft in Asia Pacific, oper- tance of establishing your operations in ated by more than 50 customers and opera- Singapore? tors in 22 countries. It is essential to us to Christophe Potocki: ATR was created in demonstrate our lasting commitment to our 1981 in Toulouse, France, as a joint ven- operators by having a strong (and growing) ture between Airbus and Leonardo. Over services presence, close to them. the last 35 years, we have delivered more than 1,358 aircraft to nearly 200 customers Could you describe the origins and ser- in about 100 countries. In many regions – vice offering of ATR Singapore and out- and Asia is a perfect example – turboprops line your operations with the ATR Sin- are the only possible solution to travel from gapore Training Centre? one point to another. Regional aircraft must Christophe Potocki: Incorporated in have the capability to operate in any severe 1996, ATR Singapore (AES) is fully or restricted environment, such as on short owned by ATR, the world’s leading tur- and/or narrow runways, at high altitude boprop aircraft manufacturer. Despite airports, on semi-prepared airfields, in ex- the global economic challenges, we have treme temperatures etc. This is a huge mar- continuously maintained our presence in ket worldwide: regional aviation represents Singapore to support our customers in the 25% of the fleet. region. We have 50 talented employees in Jean-Pierre Clercin: Just as we do all over Singapore. Loyalty and dependability are the world, ATR’s mission in Asia is to con- the most important traits that customers nect communities and help their sustainable seek in Asia Pacific; they are both key val- growth with our turboprop aircraft. Asia ues within ATR. is the fastest growing aviation market and Our main activities in Singapore focus on ATR is fortunate to enjoy great continuing services to our customers. AES offers a

28 Christophe Potocki and Jean-Pierre Clercin

GM for Sales ASEAN & Pacific and Managing Director ATR EASTERN SUPPORT

“As countries in the region develop and modernize, the gap that currently makes Singapore stand out from the rest will certainly narrow. This means that continuous innovation is indispensable. ” Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

wide range of services, from training solu- ing center was essential for us to meet the our multi-party projects. The Government tions for pilots and engineers to technical demand in the fast growing Asian market. certainly creates the right environment for support (repair solution / troubleshooting) Christopher Potocki: There are not industrial companies like ours. and spare part support (inventory man- enough training centers in Asia Pacific at Jean-Pierre Clercin: Singapore encour- agement / power-by-the-hour system for the moment. Asia represents a third of our ages a pro-business ecosystem. The aero- maintenance [GMA]). In 2013, we invest- worldwide fleet and counts over 50 cus- space cluster in Seletar is a great example ed in a multimillion dollar training com- tomers and operators. ATR pilots are thus of this. The government has played a key plex in Seletar Aerospace Park, alongside in high demand in the region. We deliver a role in attracting major players of the sector Singapore Technologies (ST), to set up an third of our aircraft to Asia Pacific custom- to one single location. As the sourcing of ATR 72-600 Full Flight Simulator. It took ers, particularly within emerging markets skilled labor remains a challenge, there is a us six months to go from zero to housing such as Indonesia, Myanmar, Malaysia, the strong push for new courses and university an ATR simulator. ST managed this in- Philippines and other areas requiring inter- partnerships. credibly successful project. Today, ST’s island operations. simulator is operational over twenty hours What advice would you have for other per day. Singapore is also the home-base What are your views on the current regu- companies aiming to operate out of Sin- of our Sales teams in Asia Pacific. latory framework in Singapore to allow gapore and where do you intend to take for growth and development within the ATR Singapore in coming years? Why was the decision made to open a aerospace industry? Are there gaps that As countries in the region develop and training center in Singapore and what need to be addressed? modernise, the gap that currently makes are ATR Singapore’s international Christopher Potocki: Singapore is cer- Singapore stand out from the rest will cer- growth targets? tainly willing to embark on positive institu- tainly narrow. This means that continuous Jean-Pierre Clercin: ATR Market Forecast tional changes to support economic growth. innovation is indispensable. ATR will con- anticipates a need for over 1,000 aircraft This country is a great place to develop tinue to develop technologies and create within the next 20 years in the Asia Pacific business and be close to customers in Asia new solutions for clients. At the moment, region. Operators will all need pilots to fly Pacific. The EDB supported ATR Singa- we are focusing on the creation of a low all these aircraft. Having a dedicated train- pore with a tax scheme to finance one of visibility navigation system.

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Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Ralph L. “ The Boeing Flight Services Singapore (Skip) Boyce campus is our largest aviation training facility in Asia and can train up to 6,000 airline pilots and technicians annually.

President BOEING SOUTHEAST ASIA ”

Could you provide a brief overview of The demand for aircraft and profession- gether on the ISS, and NASA continues to Boeing Singapore and outline a few al personnel in Southeast Asia will only look for additional future partners. We be- country highlights? increase over the next couple of decades. lieve that putting humans on Mars will be Boeing has a 70-year strong partnership What are some of Boeing’s projections a global effort and the more countries that with Singapore where it employs about for the region? invest in the future of human deep space 350 people. The island state is our South- Boeing’s Current Market Outlook fore- exploration, the better. east Asia headquarters where operations casts that there will be a demand for 3,860 range from commercial aircraft and de- new airplanes, valued at $565 billion in The Economic Development Board of fense procurement, services support and Southeast Asia over the next 20 years. Ac- Singapore has a strong push towards training, to advanced research collabora- cording to the annual report, more than the implementation of robotics and au- 30 tion with the public and private sectors. 75% of the airplanes needed will be for tomation within the aerospace industry. A key highlight in 2017 will be SilkAir single-aisle airplanes, as we continue to How is Boeing contributing to this? taking delivery of its first 737 MAX air- see a rise in the number of low-cost car- As the world’s largest aerospace company, craft. The regional wing of Singapore Air- riers as well as strong annual traffic, with Boeing is at the forefront of new technolo- lines, SilkAir started its transition to an growth rates of 6.4% for Southeast Asia. gies and the implementation of robotics all-Boeing fleet when it took delivery of We also forecast a demand for 248,000 and automation innovation. We believe its first Next-Generation 737-800 in 2014. new commercial airline pilots and 268,000 that advanced manufacturing supports our Singapore Airlines, another bellwether new technicians over the next 20 years in competitiveness by facilitating higher and customer, will take delivery of the very Asia-Pacific. China will lead the region more efficient aircraft production rates. first 787-10 in 2018. Singapore Airlines with a demand for 111,000 pilots and Besides helping increase our production has ordered 30 787-10s. , the long- 119,000 technicians, followed by South- rates, it reduces flow time and improves haul low-cost subsidiary of the Singapore east Asia with 62,000 pilots and 67,000 first-pass quality. The investment in ad- Airlines Group, which took delivery of its technicians. The Boeing Flight Services vanced technology helps us increase our first 787-9 in 2015, will eventually have Singapore campus is our largest aviation capacity to build more airplanes. For ex- 20 Dreamliners in its fleet. With its un- training facility in Asia and can train up to ample, the Panel Assembly Line on the paralleled fuel efficiency and range, the 6,000 airline pilots and technicians annu- 737 program is a highly automated wing 787 family has opened more than 120 new ally. It houses six 737, 777 and 787 aircraft skin panel production system that consoli- nonstop routes since entering service in type simulators with plans to add more dates assembly into an in-line flow using a 2011 and today flies more than 530 routes simulators in 2017. pulsing line. In Singapore, Boeing works around the world. Boeing Asia Pacific closely with the Agency for Science, Aviation Services, a joint venture between Could you describe Boeing’s presence Technology and Research (A*STAR) on Boeing (51%) and SIA Engineering Com- within the space exploration industry research projects of mutual interests in pany (49%), will provide industry-leading segment? manufacturing automation, defect inspec- engineering, repair and maintenance ser- Today, Boeing is building NASA’s latest tion, maintenance and materials develop- vices for Boeing airplanes in the region. spaceflight to transport crew to and from ment. We believe in finding the right bal- Another key highlight this past year was the International Space Station (ISS) - the ance between automation, robotics and the Singapore Ministry of Defense an- Crew Space Transportation (CST)-100 manpower. nouncement that it has awarded a contract Starliner spacecraft, which will launch in to Boeing for the acquisition of CH-47F 2018. This will be a global endeavor and Heavy Lift Helicopters also known as there are opportunities for every country Chinooks. to participate. Today, 15 nations work to-

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Soh Chee “ The industry is currently moving towards Siong a SMART factory concept, adopting automation and data driven systems to stay competitive in today’s challenging environment.

CEO JEP PRECISION ENGINEERING ”

JEP Precision Engineering has delivered JEP Precision Engineering grew from To overcome this, we are continuously look- precision machining solutions for over 10,000 sq ft to 200,000 sq ft with the new ing at ways for improvement and to increase 25 years. Could you describe the com- factory acquisition. Could you describe productivity, keeping our costs competitive. pany's relationship to JEP Holdings and the new facility? The other challenge is the tight labor mar- outline your service offering? With the rapid growth of the oil and gas, ket, which has a huge impact on most Sin- JEP Holdings is a precision machining and and aerospace industries five years ago, gapore companies. To overcome this chal- engineering services solutions provider, we started looking at expanding our opera- lenge, we have a close working relationship with a primary focus on the aerospace in- tions. We considered various countries in with educational institutions. I sit in one of dustry. There are a total of three subsid- the SEA region, but decided that Singapore the committees that review the curriculum iaries under the group: JEP Precision En- was still the most suitable place for us to for our industry to promote precision engi- gineering, Dolphin Engineering and JEP grow. We approached the respective gov- neering and hope it will be a way to attract 31 Industries. JEP Precision Engineering was ernment bodies that assisted us in secur- the younger generations. acquired by the group in 2007 and is the ing an 18,502.10 sqm plot of land within group’s main operating subsidiary. Seletar Aerospace Park. We are currently Which are JEP Precision Engineering's Accredited with AS9100, OSHAS, and in the process of moving and will be com- targets for the next three years? NADCAP, JEP Precision Engineering pro- pletely operating out of our new facility by The industry is currently moving towards duces high-level precision machine parts the last quarter of 2017. This brand new a SMART factory concept, adopting au- and our capabilities lie within machining facility will house a production space that tomation and data driven systems to stay high-tensile material such as inconel, tita- is 80% larger than our current premises. competitive in today’s challenging envi- nium and stainless steel. Over the years, Although there are no signs of the oil and ronment. For the next couple of years, we we have become established within the gas industry recovering in the next year, will be starting to introduce new technol- precision manufacturing industry and have the aerospace sector is still growing at a ogy concepts and equipment into our pro- evolved into a leading supplier that pro- steady rate. Boeing has reported about 5-7 duction. We will start by implementing au- vides complete turnkey services for aero- years of backlog in their orders and they tomation on a small scale, such as robotic space, oil and gas, electronics and machine are always on the lookout for suppliers to unloading and loading. Once the pilot run tooling industries. From the machining and increase their capacity to be able to fulfill is successful, we will look at implementa- engineering of engine casings for the B777, the demand. tion on a larger scale. A320 and B737, our business has expand- We are installing two sets of flexible manu- ed into other aerospace components such Manufacturing companies make up facturing systems (FMS), where two lines as landing gear components for the B787 10% of the Singapore aerospace in- of five machines would be fully automat- and A350, as well as air management sys- dustry and there is a strong interest in ed in our new facility. With this system in tem components for the B787 Dreamliner. growing this segment of the market. place, we will have less reliance on people In line with our goal to move up the supply What future trends do you expect to see and machine utilization will be improved chain and to provide our customers with in this realm? at the same time. Keeping up with technol- complete manufacturing solutions, a NAD- I believe that manufacturing will continue ogy is no longer a choice but our key to CAP accredited chemical processing facil- to be a key pillar in Singapore’s economy. survival in today’s competitive market. I ity was set up at Tanjong Kling in 2014 for However, Singapore is becoming a chal- think the beauty of adopting new technolo- the provision of secondary processes. lenging market to operate in given the ris- gies in our operations, is that productivity The aerospace segment currently repre- ing cost of living and salaries. Asia-Pacific and quality will be improved. Automated sents about 70% of JEP Precision Engi- countries with lower operating costs are able data collection will help us in making ef- neering’s revenue. to offer much more competitive pricing. fective decisions within our business.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Simon “ Within 15 minutes of this facility, we have a whole ecosystem of support. Wayne Singapore allows Bombardier to return aircraft to service with quick turnaround times and efficient logistics.

General Manager BOMBARDIER ”

Could you provide a brief overview of jet, Challenger and Global, represent the this facility, we have a whole ecosystem of Bombardier Singapore’s operations? broadest offering or all business aircraft support. Singapore allows Bombardier to Bombardier is the world’s leading manu- manufacturers and makes us well placed return aircraft to service with quick turn- facturer of both planes and trains, with to continue growing as a driving force for around times and efficient logistics. The revenues of US$18.2 billion and over mobility in the region. government is a strong player in the coun- 70,000 employees worldwide. Bombardier try; they truly focus on improving the sys- Business Aircraft Singapore is a business With over 4,000 employees in Asia, what tem to benefit the industry and they have aviation service center where we sup- is the importance of Bombardier for developed a very strong aerospace market port Global, Challenger and Learjet air- employment in the country and in what in a very short period of time. craft. We established our operations here way do your operations help the skilled The educational system and language in 32 in 2013 to become a one-stop-shop for labor growth in Singapore? the country are also strong selling points Bombardier business aircraft owners in Bombardier Business Aircraft Singapore for Singapore. This makes it easier to do the region. Bombardier Business Aircraft employs an average of 130 people. We business and allows for expansion. The also has regional support offices in Mum- have built strong relationships with local safety and security standards within Sin- bai, Shanghai, Hong Kong and Sydney, as polytechnics, technical institutions, and gapore provide strong stability for compa- well as parts depots in the region. Bom- training schools in order to develop Bom- nies operating in the region. Like Canada, bardier revenues (including its Aerospace bardier Business Aircraft’s staff with them. Hong Kong and , Singapore is and Transportation business segments) for We invest long-term in order to create sus- recognized as a world-class regulator. Cer- 2015 reached US$2.4 billion within the tainable solutions. We also have yearly in- tifications by CAAS are extremely well Asia-Pacific region. ternships for 10 to 20 students from local recognized globally. aeronautical engineering courses, which Bombardier aims to be the future of mo- last up to six months. The Singapore office What are Bombardier Business Aircraft bility for the SEA region. How will Bom- will continue to grow with local emerging Singapore’s key objectives for the next bardier work to attain this goal in terms talent that we have cultivated for years. 3-5 years? of business aircraft? Our employees are the driving force be- Our objective is to increase our capacity. The business aircraft segment of the indus- hind Bombardier Business Aircraft’s suc- We will be adding the Global 7000 aircraft try has grown a lot in the last 8-10 years in cess and we have a strong focus on hiring to our approvals in order to support the the region. This aligns with the economic the leaders of the future for our operations. new fleet coming into the region upon the development and growth that companies entry-into-service of the aircraft. Within 3 have experienced, as well as the level of Which are the key challenges and ad- years, we will attain an even broader port- wealth within Asia. vantages operating within the Singa- folio of certifications, covering a wider The Global 7000 business jet’s entry-into- pore market? area of maintenance and service. We aim service in the second half of 2018 will Singapore is a prime location in the region, to become a one-stop shop, building ca- bring a class-defining product to market with ease of access for maintenance and pacity to support an increasing fleet. We that will capture much of the protected operations, zero tax and connectivity to all will maintain our fast turnarounds and our growth within business aviation. the major cities within the region and glob- ability to support our customers 24/7. The Global is uniquely designed from ally. It offers time-efficient customs clear- the inside out to deliver a cabin experi- ance, which makes movement much easier ence like no other. Passengers will experi- than in other parts of the region. A quarter ence an impressive long-range capability. of the MRO market in Asia is contained Our three families of business jets, Lear- within Singapore. Within 15 minutes of

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Embraer has had a presence in Singa- is expected to account for about two thirds pore for over a decade. Could you de- of global growth. According to IATA, scribe the reasoning for establishing an by 2034, nearly half of all air travel will office in the country and outline a few touch the Asia Pacific region. Indonesia recent key milestones? is an ideal market for air transportation In the mid 1990s, the USA was by far the because they have more than 17,000 is- largest market that we had, with Europe lands and we see it as a prime example of following as the second. We knew that we a growth market. needed to diversify and made the decision to enter Asia and establish a strong pres- What are your views on the current ence in the continent. We opened an of- regulatory framework in the ASEAN fice in China, specifically for that market, region to allow for growth and develop- and also in Singapore, because it is a hub ment within the aerospace industry? for the rest of the Asia Pacific region. This There are discussions within ASEAN to has paid off given that for the last 16 years bring the Open Skies Agreement to great- we have placed more than 330 airplanes er fruition. We are very hopeful that this in 17 countries in the region. We made a will happen in the future, given that it Ricardo bold decision in 2006 to set up a regional would bring many opportunities for pas- distribution center for parts here. Embraer sengers. At the moment, most traffic is Pesce was the first large Brazilian corporation to directed through the hubs in the region, set up shop in Singapore; there are now such as Bangkok, Ho Chi Minh, Hanoi about 10 of them. and other main capitals. With the Open We are developing many products which Skies Agreement, there will be further are currently in testing phases to be re- connectivity opportunities into secondary leased during 2018. We have developed and tertiary markets. This would gener- seven new products on the business jet ate many opportunities for smaller single- 33 Managing Director side since 2005. No other manufacturer aisle jets like our E-Jets, which can bet- has created that many models in 10 years. EMBRAER ASIA PACIFIC ter match capacity against demand. It will On the commercial aviation side, the E- take some time for this to happen given Jets E2 program is underway. In the de- that many countries are protective of their fense and security area, we are in the flight own markets, but given the economic ben- test campaign stage for the KC-390 – our efits that await, we are confident that ASE- new jet-powered medium air-haul aircraft. AN’s skies will be more ‘open’ in time to At the Farnborough Airshow in 2016, we come. made the debut of the E190-E2 first pro- totype and the KC-390, in addition to the What is the importance of the Em- Legacy 500 business jet. We are optimis- braer’s new developments with E-Jets tic about the growth prospects in Asia Pa- in terms of environmental impact? “ cific and believe Singapore provides us a The whole purpose of developing the new We also see opportunities in strong base to capture opportunities in the family of E-Jets is to save on fuel con- emerging economies in the region. region. sumption, so they are much more efficient As each country’s GDP grows, so and aerodynamic. We have one of the will the appetite for travel. Over What are Embraer's target markets af- most fuel efficient airframes in the world the next 20 years, Asia Pacific is ter Singapore and China? (weight in relation to payload). expected to account for about two There is a clear indication that the center We design for efficiency and sustainabil- of gravity for aerospace is moving from ity. Despite the current low oil price, we thirds of global growth. the USA towards Asia now. Singapore is believe that it will eventually rise, reiterat- an excellent place in which to do business ing the long-term need for fuel efficiency. and an ideal hub in terms of logistics, le- Even as we work on our E-Jets E2 pro- gal framework, safety, IP for R&D and IP gram, we have been using our existing ” protection. In terms of connectivity, one E-Jets platform for the ecoDemonstrator can fly all over Asia from here very easily. program we are working on with Boe- We also see opportunities in emerging ing. It is aimed at testing technologies to economies in the region. As each coun- improve airplane environmental perfor- try’s GDP grows, so will the appetite for mance and accelerate their introduction travel. Over the next 20 years, Asia Pacific into the marketplace.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations EDITORIAL Global Business Reports

customs system which operates round the clock. It is critical for customers to mini- Growing the Landscape: mize the time aircrafts are immobilized on the ground and thus they value much more efficient logistic solutions in Singa- pore versus positioning such activities in From MRO to Manufacturing low-cost countries,” said Martin Habisre- itinger, director, Airfreight Singapore and By Elisa L. Iannacone and Alice Pascoletti Malaysia, Kuehne + Nagel. With an array of Free Trade Agreements both within ASEAN and multiple coun- tries in Asia-Pacific, air-freight provid- With 10% of the global MRO market leasing. ers can benefit from faster clearances, share, Singapore has strengthened its The precision engineering segment has top-level security and a general ease of nose-to-tail MRO capabilities for fixed experienced an improved business envi- doing business. “Replicating this system and rotary-wing aircraft on the back of ronment with higher orders for semicon- in India or China would likely prove a Asia-Pacific growth. Continued invest- ductor equipment. Continuous expansions fruitless task, as the Singapore govern- ment in the country’s MRO capacity so- in the MRO and after-market segments ment regularly puts forward ‘friendly’ lidifies its international position as a hub continue, with Airbus’ launch of the Air- policies which are conducive to contin- for the region. Given that MRO needs will bus Asia Training Centre (AATC), Safran ued growth,” said DSRV Varma, GM and diminish with the lessening maintenance opening a facility in SAP, and ST Aero- Head of Operations, CYIENT. needs of new generation aircraft, the EDB space establishing a VIP Aircraft Interiors The race for developing the manufac- is pushing the country to broaden its mar- Centre, all in 2016. However, the manu- turing industry in Singapore is on-going ket and grow manufacturing capabilities. facturing segment is not lagging behind, and various companies have been forced Comparatively to last year, Singapore’s housing world-class manufacturers such to seek support internationally in order overall manufacturing output increased as Pratt & Whitney’s GTF Engine Manu- to fulfill their operations in the - mean 11.9% in November 2016. facturing Facility, Wah Son Engineering, time. “On a company scale, Thales’ main 34 Currently, the Singapore MRO market which is commencing operations at its constraint is that we still lack certain has attracted companies such as Thales, Seletar facility and JEP Precision Engi- manufacturing capacity and services in- Safran and for cockpit neering, that also established a facility in country, which leads us to source them avionics, Panasonic and Jaco for cabin Seletar. “I believe that manufacturing will internationally,” said Ng Kim Keng, head interiors, UTC Aerospace Systems for continue to be a key pillar in Singapore’s of country business unit, Avionics, Thales thrust reversers and landing gears, SIA economy,” said Soh Chee Siong, CEO, Solutions Asia. Engineering and ST Aerospace for air- JEP Aerospace. Thales in Singapore is currently building frames, Meggitt and Liebherr for com- Aside from Singapore’s strategic loca- up local capabilities for avionics produc- ponents, Honeywell and Pratt & Whitney tion in the region as a hub for major trade tion and MRO. It is also developing com- Canada for APUs, and Rolls-Royce and routes, the country has strong air con- petences within the supplier network and GE Aviation for engines. Bell Helicopter, nectivity, with the presence of multiple believes that Singapore will continue to Safran Turbomeca and Airbus Helicop- logistics providers that can assist with turn challenges into longer term opportu- ters lead the market for helicopters, and clearances and shipping, making it a top nities for the industry. Hawker Pacific, Fokker, Cessna, - Bom logistics center. Well-designed infrastruc- Although new products are being created, bardier and Jet Aviaton are the driving ture and cutting-edge technology make innovation also entails the customization force behind business and general avia- Singapore a prime location to cut down of pre-existing products or the creation tion in the country. times on shipments and handle increasing of more cost-effective solutions for the Within the engine MRO department, demands. “Shipments can be pre-cleared industry. The SMART city concept is Eagle Services Asia for P&W Engine quickly and hassle-free via the online continuously developed for Singapore Overhaul, a JV between Pratt & Whitney and SIAEC, is the Centre of Excellence for PW4000 engines. The GE Aviation Services Network offers component sup- “ Lantal Textiles Asia Pacific analysed numerous options as possible locations port capabilities for multiple engines, and for an Asian hub. Among them we studied and Hong Kong, but SAESL, the Trent Centre of Excellence, Singapore’s geographical location is truly unparalleled in the region. Transport offers capabilities across a range of Trent facilities, infrastructure and international connectivity were also important to our engines. After-market services include operations. The fact that Singapore Airlines is one of our most loyal customers conversions, modifications, refurbish- worldwide was also an influencing factor. ments, supply chain management, spares distribution, pilot simulator training, ser- vice engineering, fleet management and Stefan Naf, Director Markets Asia Pacific, LANTAL TEXTILES ASIA PACIFIC” Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports

to maintain its technological leader- ship position in the Asia-Pacific re- gion. Increased connectivity also means increased cross-investment between countries both in developing and emerg- ing markets. Countries like Malaysia, Thailand, Vietnam and Indonesia are also supporting innovation but require higher levels of investment before they can compete as regional hubs. Singa- pore will continue developing advanced manufacturing technologies, such as ad- ditive manufacturing, robotics, automa- tion and data analytics to continue push- ing its industry into the SMART city concept. The manufacturing industry is a primary target for these new tech- nologies, with the capacity to implement them in parts of their operations that re- quire repetitive actions. The growth in the industry across Asia- Pacific has led country leaders to take measures to prepare for the future. The Bombardier Service Centre (BSC) has established a comprehensive range of after-market services and is capable of performing light maintenance for their families of aircraft jets. JET Aviation 35 increased its MRO capacity as well as increasing its capability to modify air- craft, complete avionics upgrades and interiors refurbishment. ST Aerospace is increasing its MRO capacity and Pratt and Whitney is acting as an OEM and MRO center in the country for its com- mercial aero-engine products. Although there is still a need for MRO capabilities in the region, overcapac- ity within the sector remains a concern given that many new facilities have been launched in anticipation for new aircraft deliveries. Less maintenance is required in newer generation aircraft and there- fore the need for MRO might be less then predicted. Nevertheless, the need for airports to expand in the region to meet the growing demand is pressing. “It is important that governments con- tinue to invest in expanding airports as well as other areas such as MRO and training. We need to stay ahead of the curve[…]Even though the rate of pas- senger traffic growth has slowed in re- cent years, it is paramount to continue to look at the bigger picture and invest to ensure that we do not create a sce- nario where capacity growth stops,” said Brendan Sobie. ▬

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NG Kim “ We continue to develop and increase Keng the competencies within the supplier network in Singapore and we collaborate with some of our partner companies to grow the repair capabilities in the region. Head of Avionics THALES IN SINGAPORE ”

Thales has been present in Singapore ity to repair equipment on-board aircraft their communications division. Thales has for over 40 years. With a presence in in Singapore and act as a regional repair focused on underwater communications various countries in Asia, what is the center for Asia-Pacific. Given our success systems and has supplied hardware and importance of Singapore for Thales? with repair operations, we also decided to software solutions that were co-developed In terms of aerospace, Singapore has been establish a production facility in the coun- with the Singapore Defense Agency. a paramount MRO hub for Southeast Asia try some six years ago, where the avionics (SEA) and Asia-Pacific. It is considered products produced here in Singapore are How does Thales assist Singapore in to be the center of connectivity for air and now shipped to companies like Airbus and building up local industrial capabilities maritime routes, as well as having the right Boeing directly. The production center le- for avionics production and MRO? language, infrastructure and ease of doing verages a network of suppliers in emerging Thales is strongly committed to further 36 business for aerospace. Maintenance ac- countries such as Thailand, Malaysia, India Singapore’s goal of acting as a regional tivity in the country is key for economic and China as well as established markets center for innovation within the aerospace development and job-creation. For sever- like Japan and Singapore. We have been industry. We continue to develop and in- al decades, the government has launched very successful in developing suppliers crease the competencies within the suppli- programs to incentivize companies like in these countries as an alternative to our er network in Singapore and we collabo- Thales to establish operations within Sin- traditional market. We institutionalize the rate with some of our partner companies to gapore. A high value is placed on transpar- supplier qualification process and require- grow the repair capabilities in the region. ency and reliability, which are indispens- ments within the network, and put in place Thales also runs an Innovation Hub in the able traits for the aerospace industry’s a strong partnership program with the sup- country, which engages customers and demands. We work closely with Singa- pliers to ensure smooth delivery of com- partners in user-centered innovation, en- pore’s Economic Development Board ponents and parts to our production center. abling cross-functional collaborations for (EDB) for the growth and development of We benefited from the support of the EDB co-designing, prototyping and testing new programs within Thales in Singapore. to build on this successful operation. concepts across areas ranging from de- The workforce in Singapore is reliable giv- fense and maritime security, to aerospace, en the high level of education that can be How does Thales in Singapore support air traffic management and smart cities. found in the country. Singapore is a hub Singapore’s Ministry of Defense? for industrial manufacturing and the aero- We have developed two types of activi- What is your vision for Thales in Singa- space industry needs this kind of compe- ties alongside the Singapore defense sec- pore over the next 3-5 years? tency, which is why we have been growing tor. The first is to take care of basic- re Our avionics and aerospace businesses in Singapore since 1981. We also oversee search and technology operations that can have been growing at an annual rate of 6 to a satellite operation in Beijing from here, be applied to the Ministry of Defense’s 8%, in terms of activity and revenue, and which serves local airlines in the Chinese operations. The second is to promote and we have achieved over US$200 million in market. propose defense systems for the sector, sales revenue on average each year. Five based on import technologies. Thales does years from now, I envisage having more Could you outline the Thales Group’s not develop any hardware or software in synergies in place for MRO and produc- key service offering for the aerospace Singapore, which means that we need to tion activities in the country. We will also industry in Singapore and the SEA import nearly 100% of our proposed so- explore the additional value that Thales region? lutions. We also run a Research & Technol- can provide to local customers, including We started operations by serving airline ogy (R&T) center, which was set up more getting closer to the early phase of product customers as a customer support service than 10 years ago with some funding from development and developing new services center. We have now set up our own capac- the defense sector, to perform research for for the market.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Bicky “ Our Singapore footprint contributes Bhangu to the global Rolls-Royce Research & Technology strategy. We have an extensive research footprint in Singapore in the area of manufacturing technology, electrical systems and digital systems. Director SINGAPORE, ROLLS-ROYCE ”

Could you provide a brief overview of ence that’s close to our customers. It is also Could you provide an overview of the Rolls-Royce in Singapore and outline vital to our business model as 50% of the digital activities that Rolls-Royce is in- your offering for the aerospace industry? overall Rolls-Royce revenue comes from volved in? Rolls-Royce operates internationally with after-market services and support. Conse- Rolls-Royce supplies a broad range of ser- five strategic ‘home countries’: the UK, quently, we understand the importance of a vices within the digital sector, from sensor the US, Germany, and Singa- regional hub to the success of our custom- technologies, software and connectivity, pore. In Singapore, we have a significant ers’ operations. to improving productivity in the factories footprint at the Seletar Aerospace Park. Our commitment is supported by Singa- of the future. Building on our expertise in Our 154,000 sqm Seletar Campus is an pore’s very clear and structured national civil aerospace, where we are already using integrated facility where we manufacture strategy which puts aerospace at the fore- Big Data in our TotalCare services We are wide chord fan blades, assemble and test front of future development. The fact Sin- also developing ship intelligence; we are 37 Trent engines, conduct our employee and gapore has strong governance, transpar- pioneering the technology behind autono- customer training, and have a focused cus- ency, and a highly skilled workforce all mous vessels, utilizing IoT (digital connec- tomer service center for our Asia Pacific contribute to Singapore being one of our tivity), which can be remotely controlled. airline customers. This is complimented strategic locations. One of the major challenges in the digi- by our MRO joint venture in Singapore, tal field is creating adequate algorithms SAESL, providing support for the full Could you describe the reasoning behind that can integrate the whole value chain. lifecycle of an aero engine. Together this Rolls-Royce’s partnerships with local Rolls-Royce is adding value as a systems totals 1,500 employees working in Singa- universities and research institutions? integrator, which is why we are seen as a pore, which added to our JV, becomes a In order to keep developing the most cut- strong partner in the country. We are start- pool of 2,500 people in total. ting edge technology we need to work with ing to develop predictive rather than reac- When we opened our Seletar Campus in the brightest and best minds from specialist tive maintenance. The ultimate target is to 2012, it marked a significant milestone for universities globally. Rolls-Royce invested develop the technologies of the future by Singapore’s aerospace industry – Singa- £1.2 billion on R&D in 2015, and has es- embracing digital, automation and robot- pore can say that it makes, flies and ser- tablished a network of 31 University Tech- ics developments, which will add value to vice engines. It’s worth highlighting that nology Centers worldwide, of which Nan- our operations. our Singapore footprint contributes to the yang Technology University (NTU) is one global Rolls-Royce Research & Technolo- of. So we collaborated with NTU to form Which are your key objectives for Rolls- gy strategy. We have an extensive research Rolls-Royce@NTU Corporate Lab. We Royce in Singapore, for the next 3-5 footprint in Singapore in the area of manu- have more than 2,000sq m in Singapore al- years? facturing technology, electrical systems lotted for laboratories for data analytics, re- I would like to see our Seletar Campus’ and digital systems. pair, electrical systems and manufacturing. facilities operating at 100% capacity: pro- While 90% of our operations in Singapore At the same time, we believe that getting ducing more than 8,600 fan-blades per are related to the civil aerospace market, involved with partnerships with universi- year, assembling our target of 250 engines we also engaged with the defense sector. ties and research institutions will help nur- / year and assembling a new engine type. ture talent and inspire the next generation We are already in pre-production phase Why was Singapore selected as one of of future engineers and scientists. We take with the Trent 7000 and will start produc- Rolls-Royce’s ‘home country’ markets? around 100 interns every year into our Sin- tion in 2017. Over half of our civil aerospace order gapore workforce. This is vital to ensuring a We want to maximize our digital technolo- books come from Asia and the Middle consistent and highly skilled talent pool not gies that will improve and develop our East, so it’s important for us to have a pres- just for us, but also for the wider industry. products, services, factories and processes.

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Lim Serh “MRO in the future will evolve along the Ghee features of the newer airplanes, as the focus shift towards a smarter and more data-centric maintenance regime.

President ST AEROSPACE ”

ST Aerospace has a global network to as- ST Aerospace is a part of ST Engineer- growth of 5.7% to US$66 billion. Of these, sist clients across a full range of services. ing, a homegrown defense and engineer- the largest segment is for engine repair Could you describe the service offering ing group with three other strategic busi- overhaul, for which material costs will be that you provide? nesses in electronics, land systems and dominant. As new aircraft are inducted with ST Aerospace has presence in the US, marine. How does ST Aerospace leverage newer technologies and better efficiency China, Europe, Australia and Singapore. the synergy within the group? and reliability, the maintenance needs will In 1975, we started in Singapore to sup- For customers that require integrated and also change. The traditional heavy checks port the Republic of Singapore Air Force networked solutions spanning the air, land cycle will become less dominant as new (RSAF) with their aviation maintenance and sea domains, we are able to leverage generation airplanes require less labor dur- requirements. From that strong engineer- synergies within the ST Engineering group ing scheduled maintenance, which will also 38 ing foundation, we have grown the busi- to deliver such solutions. As the unit with happen at longer intervals. MRO in the fu- ness in MRO in tandem with the growth in air platform expertise, ST Aerospace will ture will evolve along the features of the global commercial aviation to a portfolio lead in (UAV) newer airplanes, as the focus shift towards a that is about 30% military and 70% com- projects while the land system unit, ST smarter and more data-centric maintenance mercial by revenue. Our service offerings Kinetics, will lead the autonomous ground regime. Beyond the system-level trouble- as ST Aerospace group of companies in- vehicle projects, and the marine unit, ST shooting, the more detailed level of MRO clude aircraft maintenance and modifica- Marine, in sea platforms. The electronics will have to evolve to become more efficient tion, component total support, engine total unit, ST Electronics, with its strengths in by using smart diagnostics to troubleshoot, support, aviation and training services, and communications, software and intelligent and automation to reduce the human work aerospace engineering and manufacturing. systems, can develop the intelligence in the effort. This points towards the need to invest These five clusters of capabilities and com- platforms. One example of collaboration more in robotics, analytics, data communi- petencies allow us to offer to our customers is a UAV developed by ST Aerospace that cations and systems thinking to be able to the spectrum of engineering and mainte- can be launched from the rear of a vehicle effectively manage and innovate processes nance solutions. developed by ST Kinetics. Beyond collabo- to maintain onboard smart systems. With more than 40 years working on both rating on product design and development, military and commercial aircraft, engines the strengths of ST Engineering can also be What is the future outlook for ST Aero- and components, we have the engineer- harnessed to help the group innovate and space and which milestones do you hope ing depth and expertise to provide repair perform better in the delivery of services to to achieve in upcoming years? and engineering solutions that are tailored our customers. For instance, we are work- ST Aerospace will continue to leverage to the requirements of our customers. We ing on using data analytics more in our its engineering capabilities to create more develop value-added solutions for our cus- operational processes to improve decision- intellectual property that will be a part tomers that can range from engineering de- making as well as automate some of our of its range of products. The hallmark of sign to modify an aircraft fleet, for instance work processes to benefit from unmanned aviation has always been about being air- passenger-to-freighter conversion, to de- operations where suitable. worthy and safe operations. As an MRO signing and manufacturing aviation prod- service provider, ST Aerospace is certified ucts such as aircraft seats. Another attri- What kinds of trends have you noticed in by international airworthiness authorities, bute that differentiates ST Aerospace is our the MRO segment and what changes do such as the CAAS, the FAA and EASA, work involving both military and commer- you see moving forward? to be compliant and world-class. We will cial aviation, and with it, our work culture The global MRO spending continues to be continue to improve ourselves to serve our has strong focus on technical competence, strong. In the next 10 years, spending is customers with utmost professionalism timeliness and dependability. expected to achieve a compounded annual and best standards.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

John Riggir “ Doing business here, in terms of access to airport facilities and services companies, is easy.

Vice President and General Manager, JET AVIATION SINGAPORE ”

Jet Aviation has been providing services Could you describe your service offering are very proactive in promoting Seletar to customers in Singapore for 20 years. for the aviation market in Singapore? Aerospace Park and have a strong vision Could you describe your international Jet Aviation is a multi-faceted business to create business aviation services that are operations as well as your vision for Sin- aviation services company. We want our unrivalled in the region. Doing business gapore? customers who own a private jet to have here, in terms of access to airport facilities Jet Aviation is headquartered in Basel, the possibility of having it serviced any- and services companies, is easy. Switzerland and is part of a Fortune 500 where. From a services perspective, we company called General Dynamics (GD). are divided into aircraft completions (for What is your opinion on the Singapore Jet Aviation represents one arm of the large aircraft), maintenance and refurbish- EDB's strong push for the implementa- aerospace investments division within ment services, FBO (ground handling), tion of robotics and automation in the GD. As a leading business aviation ser- aircraft management (owning, crewing, aerospace sector in Singapore? 39 vices company, Jet Aviation’s service of- flight planning, provisioning), and we also From my prospective, it will take an in- ferings include maintenance, completions operate alongside Jet Professionals, which credible amount of alignment with the and refurbishment, engineering, FBO and is a staffing company that provides all the manufacturers and regulators to success- fuel services, along with aircraft manage- personnel needed to provide high-standard fully implement robotics and automation ment, charter and staffing. From a service services to our clients. into aerospace operations. Jet Aviation's perspective, we have an integrated “hub operations would have to be sized and co- and spoke” business service model, op- How does Singapore's aerospace indus- ordinated to address several models of air- erating four major MRO hubs — located try compare to Hong Kong's? crafts and, given that cost and complexity, in St. Louis, Basel, Dubai and Singapore In terms of business aviation, the rules and AI would not be our main focus at present. — which are supported by other global regulations are basically the same in both Jet Aviation already implements advanced maintenance facilities to meet regional Singapore and Hong Kong. As far as run- technology in terms of 3D mapping to demand. Our two Completions Centers ning a business in those locations, Hong produce aircraft interiors, which allow us are based in Basel and St. Louis, while Kong airport has become congested. When to design, construct, assemble, test and we operate 20 FBOs around the world and the planning of that airport was done, they certify a complete interior stage by stage manage a global fleet of approximately catered for what they believed would be — and much faster compared to what 300 aircraft. the largest private-jet market possible, we could do just three years ago. We are Jet Aviation launched its MRO & FBO fa- about 30 aircraft, whereas there are well now able to create a full Boeing business cility at Singapore Seletar Airport at the over 100 aircraft parked there. The infra- jet interior in six months. State of the art Singapore Airshow in February 1996. structure to support business aviation there 3D engineering and manufacturing aid us The business aviation market is certain- is complex and now restricted given that in cutting honeycomb panels with laser or ly growing in Asia-Pacific and we have operators are all competing for limited water-jets in a synthetic environment for faced accelerated growth ever since China space and landing permits along with the ultimate accuracy. Real advantages will started buying large jets in 2010. Jet Avia- growth in demand in commercial airline be felt in terms of aircraft assembly, where tion built a new facility in 2014 adjacent activity. Hence our strategy to expand into skilled labor may be replaced by automa- to our old hangar, and we are building Macau, which will provide us with a great tion in the future, but aircraft maintenance a new hangar in Singapore now, which deal more flexibility and opportunity for will take longer. will be completed in Q3 of 2017. Overall growth of our operations in the future. we will grow to occupy a space of about In Singapore the Economic Development 15,000sq m, firmly establishing Singapore Board is playing a very influential role in as a major hub for Asia-Pacific. terms of land allocation and usage. They

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Leow Thiam “ The clustering of aerospace companies Seng also opens up more opportunities. Being in SAP brings them closer to their customers, which helps to improve business linkages and operational efficiency.

Group Director of Cluster Group JTC ”

Could you provide a brief background of including Rolls Royce, Pratt & Whitney, ing how being in SAP has aided Wah Son’s JTC’s history in Singapore and outline and Bombardier, and progression. your key objectives within the aerospace local SMEs. There is a thriving aerospace SAP provides industrialists with the neces- industry? community of almost 5,000 working pro- sary supporting infrastructure and allows Set up in 1968, JTC is the lead government fessionals in SAP. them to seize potential synergies by being agency responsible for the development clustered together. Being in SAP brings of industrial infrastructure to support and Could you speak of the success that SAP them closer to their customers, which helps catalyze the growth of industries and enter- has had in developing the aerospace eco- to improve business linkages and opera- prises in Singapore. Landmark projects by system? tional efficiency. JTC include the Jurong Industrial Estate; SAP is able to help the aerospace industry 40 the for energy and chemical attract their supply chain to form a compre- Beyond infrastructure, JTC is building a industries; business and specialized parks hensive ecosystem, which in turn grows the strong knitted community in SAP, could such as Airport Logistics Park of Singa- number of good jobs for the industry and you speak of this? pore, International Business Park, Changi Singapore. The co-location of SMES and The next stage of SAP’s development fo- Business Park, CleanTech Park and MNCs in SAP creates more opportunities cuses on deepening business relationships Biomedical Park; a new work-live-play- for networking and business collaborations, and creating a sense of belonging and iden- &-learn development called one-north; and thereby enhancing the competitiveness of tity; building a community that is greater the Jurong Rock Caverns, Southeast Asia’s the aerospace industry. The establishment than the sum of its parts. To create a vibrant first commercial underground storage facil- of the Rolls-Royce Seletar Campus, besides community, JTC organizes regular events ity for liquid hydrocarbons. JTC also devel- attracting correspondingly world class sup- for the SAP community including network- ops innovative space, such as JTC Surface porting suppliers such as RLC, has also ing events, lunchtime talks and exercise Engineering Hub, JTC MedTech Hub and generated positive spinoffs and expansion classes. Focus group sessions are held regu- JTC Food Hub, which incorporate innova- into SAP by local companies such as JEP larly to engage and understand the needs of tive features and shared infrastructure to Precision Engineering, who manufactures the community. These initiatives provide enable industrialists to start their operations Rolls-Royce engine casings and rings for companies with the platform to network, quickly and enhance productivity. Trent engines. setting the stage for possible collaborations. Wah Son is a key instance of an SME JTC also works closely with companies Could you describe JTC’s developments whose strategic establishment in the SAP and the industry association, Association and future outlook for Seletar Aero- has aided in enhancing its growth as well of Aerospace Industries Singapore (AAIS) space Park? as the ease of integrated business collabora- to strengthen business linkages between Seletar Aerospace Park (SAP) is one of tion with aerospace MNCs. Established in companies. Most recently, we worked to- JTC’s iconic developments dedicated to the 1971, Wah Son has evolved from a tradi- gether with AAIS and other government continued growth of Singapore as an aero- tional family-run machining workshop to agencies to showcase local companies in a space hub. Since its inception in 2007, SAP a global leading aerospace engine tooling trade exhibition in France. We are in discus- has developed into a world-class integrated manufacturer. Moving into the SAP in July sion with AAIS to run courses pertaining to aerospace hub hosting a wide range of aero- 2015 was an important enabler for Wah Son aerospace certification, safety regulations, space-related activities. to continue expanding and developing its and general skills upgrading for the aero- SAP spans 320 hectares of purpose-built capabilities. Wah Son has since established space community. JTC will continue to de- land and infrastructure, including the Sele- new partnerships with Pratt & Whitney, velop new and innovative space solutions tar Airport. Today, SAP is home to more Bombardier and Vector Aerospace in the so that SAP can continue to support Singa- than 60 companies, with a mix of MNCs, estate to provide tooling solutions, signify- pore's aerospace industry.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

Image: Hawker

Navigating the Skilled Labor Shortages By Elisa L. Iannacone and Alice Pascoletti

41

The Singapore aerospace industry current- to rise. Employees have a tendency to go ing costs have also extended to running ly employs 19,900 workers and is commit- between companies looking for a higher- a business in the country. Not only are ted to developing the necessary talent to paying job or a better offer. "We end up employees’ salaries higher, but a major meet the industry’s growing needs through with a pool of people that are simply tran- challenge faced, particularly by the SME the expansion and support of educational sitioning from one business to another. segment, is the rising cost of space rent- institutions. New courses and specialized The concern is that whilst this practice als. The government’s push for improving programs are emerging to support the drives up the cost of skilled labor, it can operations and processes through automa- more than 1,700 yearly graduates in the be perceived as a generation that has less tion to cut-down on labor costs is a part of aerospace sector. Although educational loyalty to the companies that offer them Singapore’s solution to the problem. “[We institutions have grown to attract interna- opportunities,” said Nick White, managing must] upscale the workers rather than re- tional students and Singapore has evolved director, Fokker Services Asia. place them. Let robots do the basics,” said to become a training hub for the region, the Despite the fact that many companies feel Philip Sung, director, sales & operations, country is still struggling with satisfying that high-turnover rates are experienced Esterline Advanced Sensors. the need for skilled labor in its own aero- within the aerospace industry, others dis- Though the Singapore economy is primar- space industry. agree. “It is not correct to say that there ily made up of SMEs and efforts are con- A general sentiment that the Singapore is a constant turn-over of employees. The stantly made to set up grants and subsidies graduate does not want to work his way up aerospace industry, in particular, is known for these companies, its is paramount to the work-ladder and tends to want to have for its ability to retain its employees and improve on productivity by retaining the a high-paying job from the start is shared provide good career opportunities. In workforce on key roles and implementing across the industry. “In Singapore, young- fact, it is the sector with one of the highest Industry 4.0 in the work-space to keep up er generations nowadays seem to loathe percentages of local employees – around with the aerospace industry’s growth pace. manual work that may get their hands 80%,” said SIA Kheng Yok, chief execu- Younger generations are attracted to tech- dirty. There is an overarching feeling that tive, Association of Aerospace Industries, nology and innovation, which is another starting from the ground up is not worth- Singapore. reason to push new processes forward. while,” said Lee Swee Meng, general man- Despite these opposing views, it remains “We need to make the aerospace sector ager, Composite Technology International. clear that the sourcing of skilled-labor in especially appealing given that most Sin- The rapid increase of aviation businesses the country has yet to stabilize and there gaporean graduates choose to go into what also means that demand for skilled labour is not yet a strong enough skilled-labor they perceive as more lucrative fields such is higher, and employment costs continue pool to meet the industry’s demands. Ris- as business. Working on an aircraft, engine

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or car is not viewed as prestigious. We need to introduce the concept of technicians into Singapore in order to continue growing the “ It is not correct to say that there is a constant turn-over of employees. The industry,” said Patrick Garez, managing di- aerospace industry in particular, is known for its ability to retain its employees and rector, Asia Technical Services. provide good career opportunities. In fact it is the sector with one of the highest Given the shortage of skilled labour in the percentages of local employees – around 80%. country, many companies in the aerospace industry are forced to look for alternate means to meet their needs. “We are cur- SIA Kheng Yok, Chief Executive, ” rently hiring employees from even our ASSOCIATION OF AEROSPACE INDUSTRIES (SINGAPORE) customers,” said Yap Siok Leng, finance controller, customer service & support, ” Meggitt. Others have started to question if their operations would benefit from hold- The Boeing Flight Services Singapore campus is our largest aviation training ing operations internationally, given that “ facility in Asia and can train up to 6,000 airline pilots and technicians annually. the cost of labour is so much lower in the surrounding emerging markets, such as It houses six 737, 777 and 787 aircraft type simulators with plans to add more The Philippines, Malaysia and Indonesia. simulators in 2017. Another unique feature is that the facility has a composite “The main driver for our business is not training workshop. so much labour costs, but rather access to the talent pool. Certainly, labour cost is something we have to manage and there is Ralph L. (Skip) Boyce, President, BOEING SOUTHEAST ASIA ” a tendency to look for alternate locations to manufacture more cost-efficiently,” said geographical closeness, and many also, Dedienne Aerospace. At the same time, Tan Kai Hoe, president and chief execu- in developing partnerships and col- others are concerned with the level of ex- tive officer, Accuron Technologies. “The laborations that can invest in growth as pertise they may find in markets outside government in this country needs to think joint ventures. “Singapore is in a strong of Singapore. Some have concluded that 42 about how it brings more position given that it is surrounded by the best course of action is to remain lo- into aviation before the only thing we can countries in the region where people are cal and pay more for the guarantee that do is bring in more local labour,” added happy to come out to work. We are able the work-force they hire will be kept to Nick White. to source manpower from Malaysia, Phil- a professional standard. “The simple fact Companies looking to source labour in- ippines and Indonesia if need be,” said of operating out of Singapore offers confi- ternationally are primarily interested in Kelvin See, VP business deveopment, dence and assurance […]Operational and Image: JEP Precision Image:

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Hawker Pacific has a strong presence in interests in emerging economies – this can Asia Pacific. Could you describe your be seen from increasing sales of business presence in the region and elaborate on aircraft for personal use, particularly in In- the services offered to your clients? donesia. Business owners recognize that Hawker Pacific was established in - Aus the aircraft is a business tool, allowing tralia, and started its operations in Singa- them to connect between continents and pore by providing technical consultation places which may not always have well- for the Republic of Singapore Air Force established commercial transportation back in 1969. Since then, the company links, and this allows them to save on time has grown, establishing a technical sup- which they value above all else. port facility in Singapore and growing this over the years to become one of the largest Could you highlight Hawker Pacific maintenance, repair and overhaul (MRO) Singapore’s key objectives for the next operators in Singapore’s Seletar Airport, 3-5 years? providing maintenance, modifications, up- We are increasing sales and the geographi- grades and other aircraft support services. cal reach of our aircraft support services, We are now fleet-support market leaders and growing and investing in our pool of Louis Leong for civilian and military aircraft and our skilled labor which currently sits at ap- dedicated team can provide integrated so- proximately 150 people. We work along- lutions across the value chain of aviation. side the Singapore government to attract We have aircraft maintenance facilities lo- the younger generations into business avi- cated across the Asia Pacific region in Sin- ation, which remains a niche segment of gapore, Malaysia, Philippines, China, Aus- the market. It is a key growth area which tralia and , supporting some has witnessed many polytechnics offer- of the largest business and general aviation ing aircraft maintenance and aerospace- manufacturers such as Beechcraft, Bell related courses over the past five years. 43 Vice President Asia Helicopters, Bombardier, Cessna, Daher- Hawker Pacific is looking into developing Socata, Dassault Falcon Jets, Diamond, HAWKER PACIFIC ASIA new opportunities in-country and through- Embraer Executive Jets and Hawker. out the SEA region. We are always open to Fixed Base Operator (FBO) and handling partnerships and joint ventures wherever services are also available at our locations the demand requires it. in Singapore, Shanghai, , Cairns, Sydney and Brisbane. Hawker Pacific also offers aircraft sales, aircraft management, special missions support and component repair out of Aus- tralia, and spares distribution through our warehouse in Hong Kong. We also have “ representative offices in China and Indo- Customers are growing increasingly nesia, and a facility in Dubai, which offers aware of how using a business rotary-wing maintenance and component aircraft can increase their support. productivity when pursuing business interests in emerging economies What kinds of trends for business avia- – this can be seen from increasing tion have developed in the Asia Pacific region over time and what key drivers sales of business aircraft for personal will we see for the segment’s continued use, particularly in Indonesia. growth? The key drivers for the growth of the busi- ness aviation sector will be the increased demand stemming from countries that ” have a sizeable aircraft fleet, such as Chi- na, Indonesia, and even Malaysia. Cus- tomers are growing increasingly aware of how using a business aircraft can increase their productivity when pursuing business

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Jerry Liang “ We need to build up rather than out, by exploring innovation and developing workable processes to face new challenges.

Executive VP and Accountable Manager ” EXCEL AEROSPACE

Could you provide a brief background customers to concentrate on other priority masses in the region is by air. Demand of EXCEL Aerospace and highlight the matters. for aircraft will increase and we expect to aircraft interior projects you are cur- have a strong presence in this rapid grow- rently working on? Excel Aerospace is growing at a rapid ing market. Excel Aerospace is a Singapore-based, ap- pace, could you describe your near-fu- proved MRO that focuses on supporting ture expansion plans? What challenges are MROs currently both operators and hangars in the region Excel Aerospace is moving into the next facing? as an economic-solutions support-shop. phase of growth at the moment. We have I think MROs have to change their mind- We have a decade of experience and a invested in a 3/4 hectare of land at Sele- set to become more competitive. I saw the very strong delivery history. Excel Aero- tar Airport, which will become a 4 story glory days in this region – everyone was 44 space started as an aircraft interiors shop, building and 11,000 sqm facility. Excel making good money, airlines were happy, and this capability remains its core busi- Aerospace would like to work with other even when oil prices skyrocketed, every- ness, with constant projects and cost effi- companies that want to expand in Asia in one was good. Most aerospace businesses cient overheads. Our business mission is order to develop synergies with new part- today in Asia are expanding sideways to let our customers know that we provide ners. We can grow organically to a certain rather than vertically, regardless if these products and services at European quality level, but then we need to rely on partners expansion plans are repetitive or dupli- standards, but at Asian pricing. We have in order to continue expanding to meet the cating others. Without steady jobs and a a strong interest in maintaining a certain growing demands in the region. commitment to grow, cost will surely go quality of image. When people walk into Do you expect your operations to grow up with added depreciation and low pro- our offices they can tell they have been alongside the demand emerging in the ductivity. Therefore, we need to build up exquisitely designed, and we want them Asia-Pacific region? rather than out, by exploring innovation to feel the same way when they enter an The Asia Pacific region will be the eco- and developing workable processes to face aircraft interior we have been in charge of nomic centre of gravity for at least the next new challenges. designing. We have a turn around time for 20 years. The percentage of growing na- our customers that is much shorter than tions is vast, such as Myanmar, Cambodia, EXCEL Aerospace holds certifications our competitors. Laos, Philippines, among many others. from the FAA, TA-M, as well as the VAR Asia has three of the world’s largest popu- 145. How challenging was it to receive a How does Excel Aerospace source new lations. Borders in the region are not like certification from the CAA-S compara- clients and partnerships? Europe or even America, where one can tively? In this industry one gains customers drive across long stretches. In Asia, trav- Basically because we are an SME, we had through word of mouth. By managing our elling northwards on land is a challenge, to approach the goal of attaining the vari- overhead and operational costs well, and due to its many borders, uneven terrains, ous Airworthiness approvals carefully. The keeping a high standard in all our deliver- underdeveloped roads and security levels. cost of getting them is not cheap, while ies by investing in skills, automation, and These issues will take a long time to be ad- maintaining them is another challenge. We support logistics, we are able to offer our dressed. From West to East there are the have a strong commitment to ensuring that customers a competitive edge when they Himalayas. If we attempt to go by sea, we the entire company will work as a team, compete for projects. We work closely have the typhoon seasons and also piracy and that the management team is able to with our customers to listen to their chal- problems that we are trying to resolve. Sea lead every department with knowledge lenges and needs. Excel Aerospace will routes currently are mainly freight only, and wisdom, ensuring all regulations and then fine tune its activities and capabili- we see very little or no services for pas- policies established by the authorities are ties to support their needs and to allow our senger travel. The only way to move the adhered to and practiced.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

living costs are also high, but these are tied to quality assurance, which is more of a positive feature,” said Darrel Chua, “ Singapore is a small place with 5.5 million people, which includes foreigners. general manager, Flightech Systems. There is a tight quota on foreign hires and it is getting increasingly difficult to Looking at neighbouring countries in the hire locals who are interested in this line of work. To overcome this challenge, we region for labour can also pose the chal- have a close working relationship with educational institutions. I sit in one of the lenge of ensuring that work visa require- committees that review the curriculum for our industry to promote precision ments are met. Companies seek as far as engineering and hope it will be a way to attract the younger generations. Australia, New Zealand and in certain cases across other continents. With an expertise in immigration law and for- Soh Chee Siong, CEO, JEP PRECISION ENGINEERING eign policy, companies such as ALG have emerged to assist customers in these kinds of processes. “Every country has a restriction on international staff and Sin- A challenge with Singapore is that gapore is no different to Australia when it “ with the rapid growth of aviation, many comes to this,” said Tom Dowdall, chief executive officer, ALG. In terms of the businesses are struggling to recruit local future outlook for the labour costs in the staff who have the experience needed. region, Tom believes that “labour costs We end up with a pool of people that are will inevitably continue to ramp up in simply transitioning from one business to Singapore, which is the nature of the in- another. The concern is that whilst this dustry here, as well as a challenge.” The practice drives up the cost of skilled labor, strategy is to ramp up production through it also leads to a growing population who automation and sourcing the right skills may be perceived to have less loyalty to the for the job. companies who offer them opportunities? The push for manufacturing has attracted industry giants like GE, Rolls-Royce and 45 Pratt & Whitney into Singapore, which Nick White, Managing Director, FOKKER” triggers a mixed demand for labour, with a need for tradesmen as well as high-level licensed engineers and executives. Find- ing tradesmen remains the biggest chal- lenge for the industry but the government identified this gap in the value chain a few years back and has set in place vari- ous programs to try and address the issue in time. Engineering shortages can also be felt across the industry. “Today the industry is very heavily loaded with tech- nicians but not with sufficient engineers. SIAE has a mission is to build a technolo- gy and safety culture for the ‘Next Gener- ation Aviation Profession’ to grow,” said Lim Yeow Khee, president, Singapore In- stitute of Aerospace Engineers. Singapore, as a small island, will always have limitations, but progress is being made. In the same way that a S$76 mil- lion (US$53 million) investment was made into a Precision Engineering man- power initiative, and then supplemented in 2012 by another S$36 million (US$ million) for Precision Engineering Voca- tional Continuing Education & Training (PEVC), investments are currently being made to develop a sustainable pool of master craftsmen in the country. ▬

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Lee Swee “ CTIPL did factor in oil prices into the annual projection, but we discovered Meng that the demand did not diminish. Companies such as Airbus Helicopters, Leonardo Helicopters and Bell Helicopter have described steady General Manager helicopter sales in the region. COMPOSITE TECHNOLOGY INTERNATIONAL ”

Composite Technology International is a CTIPL did factor in oil prices into the annu- of business, safety and quality. rotor blade repair specialist. Could you al projection, but we discovered that the de- describe the main ways in which you mand did not diminish. Companies such as What are the advantages of operating as serve the aerospace sector in Singapore? Airbus Helicopters, Leonardo Helicopters a smaller company while servicing multi- Composite Technology International (CTI- and Bell Helicopter have described steady nationals? PL) was established in 1984. We currently helicopter sales in the region. As a smaller company, CTIPL is much service more than 120 customers in 18 coun- easier to manage and control. Our services tries within the Asia-Pacific region. CTIPL The aerospace industry in general has remain focused on our core business of he- is an authorized customer service facility of observed an increase in the use of com- licopter rotor blade repairs. Many larger Airbus Helicopters, Bell Helicopter, Leon- posite materials for manufacturing. companies opt to diversify and operate with 46 ardo Helicopters and Sikorsky. Since 2012, Which would you say is the future trend a large workforce, but I believe our strength our business has experienced an exponential for rotor blades in this realm? lies on this niche capability. We experience growth and CTIPL has sourced 12-14 new CTIPL has seen tremendous growth in low manpower turnover rate given the loy- clients per year. Though all of our repairs blades that are made out of composite ma- alty of our employees, which are all local. take place in Singapore, we continue to ex- terials. In the past, there used to be only me- However, sourcing skilled labor is chal- pand our customer base into new countries. tallic rotor blades but today we work more lenging. In Singapore, younger generations We have also made some major renovations on composite blades. We do not perceive a nowadays seem to loathe manual work that to expand our facilities in the Loyang Avia- strong difference between the materials re- may get their hands dirtied, and there is an tion Estate, near Changi Airport. There are lating to repair processes though composite overarching feeling that starting from the 21 people operating out of this facility and blades, which have a much longer finite ground up is not worthwhile. Recruitment we undergo an average throughput of 450 life and are more repairable as compared can become a challenge. blades annually, providing a full range of to metallic blades, provide us more repair specialized services for composite and met- opportunities. What is your outlook for CTIPL for the al helicopter rotor blades. next 3-5 years? Our operations are strategically located in What percentage of your operations stem Regardless whether there is a slower Singapore to act as a hub for the region and from military and defense as opposed to growth in the market, we will inevitably we are supported by a pool of dedicated commercial ? reach a saturation point where our growth technicians with in-depth know-how and CTIPL's business comprises roughly 40% will slow down or plateau. We will have to professionalism. CTIPL initially worked military and defense, and 60% commercial be nimble and possess a proactive attitude with Airbus Helicopters and Bell Helicop- aviation. We work with international mili- to the industry to ensure we are prepared to ter; Leonardo Helicopters and Sikorsky tary/defense customers in countries such as face challenges whenever they approach. were included later. These OEM’s repair the Philippines, Thailand, Indonesia, etc. CTIPL will continue to operate as a highly approvals are confined to agreed territories, We have six Approved Maintenance Organ- reputable company to partner with. Sin- and that is the reason for establishing our isation (AMO) approvals from relevant civ- gapore will capitalize the rapid growth in presence only in Singapore. il aviation authorities in this region and Eu- aviation activities in Asia. This country is rope. We received the Singapore Aerospace a key global player in aerospace MRO with Given the global downturn of oil prices, Award for Singapore Aerospace Industry an excellent seaport, airport and infrastruc- some companies in the helicopter indus- Excellence, Platinum, in 2014. This is a ture, and I would therefore encourage heli- try have faced challenges. Have you per- strong accomplishment for our company copter companies and manufacturers to join ceived a decreasing industry trend from and it speaks well of our capability and ca- into this ecosystem and get in touch with us the OEMs themselves? pacity in maintaining the highest standards for business or partnership.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

lieves that no regulator will be allocating permits and approvals within that realm The Implementation of anytime soon. Although the EDB is pushing for robotics and AI developments within the aerospace Industry 4.0 and New field, some are questioning the capacity that disruptive technologies will have to truly aid their operations, especially giv- Technologies en the high-levels of investment required to implement them. “Using automation in By Elisa L. Iannacone and Alice Pascoletti the aerospace aftermarket environment would require a major investment where- by I reckon not many SMEs would find it economically viable […] The challenge is not how to get it automated, but rather, Automation, Internet of Things (IoT), ad- Though Industry 4.0 processes will aid what is the payback?” said Philip Sung, ditive manufacturing and all processes the industry at the moment, whether this director, sales and operations, Esterline. that assist Singapore in addressing ris- can feasibly act as a permanent solution Nonetheless, the opportunities to be ing costs and labor shortages are para- remains uncertain. The first concern that found within the repair value stream are mount to the successful development of must be addressed is the speed at which to be explored. In order for automation the country’s aerospace industry. Despite the transition into automation can take to become more common, it has to prove the industry’s investments in new training place within the industry. “In my opin- that it can provide greater advantages and facilities to grow the number of gradu- ion, it will take an incredible amount of solutions for Singapore than the sourcing ates in the market, such as Haite Group’s alignment with the manufacturers and of skilled-labor within the SEA region. S$95 million (US$67 million) training fa- regulators to implement robotics and au- The reasoning behind companies’ deci- cility with simulators, the speed at which tomation successfully into aerospace op- sions to seek out disruptive technologies skilled labor is needed in the region is erations,” said John Riggir, vice president is quite varied. In the case of Accuron, it greater than the country’s capacity to sup- and general manager, JET Aviation. is the drive to take precision engineer- 47 ply trained workers at the moment. The Though the company has implemented ing up the value chain with own designs, EDB and A*STAR are investing heavily 3D scanning to reproduce aircraft interi- which require more cost-efficiencies. “We on technology innovation processes. “We ors and utilize cutting-edge 3D engineer- will always watch out for disruptive tech- are currently looking at the application ing and manufacturing processes to cut nologies and techniques, such as additive of robotics, automation, data analytics honeycomb panels with laser and water- manufacturing. It may take a while for and additive manufacturing. In the nearer jets, the real advantages will be felt in this to truly become prevalent in the aero- term, we are focused on innovations and terms of aircraft assembly, where skilled space industry, but I think that change technology that would make Singapore labor will be replaced by automation. will take place swiftly. We will also see more competitive,” said Tan Kong Hwee, The company is not focused on Artificial people making use of Industry 4.0, IoT, or director, transport engineering, EDB. Intelligence (AI) at the moment, but be- simply automation to improve the manu-

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations EDITORIAL Global Business Reports

“ We have planned to introduce robotic welding in our flexible manufacturing cell within the next year. Despite the current market sentiments and inherent risk of failure, we are compelled to think long-term and instead of making decisions based solely on an immediate-term cost-benefit analysis. We see this as the way forward because of the shortage of skilled Singaporean welders and machinists will be a perennial issue. In order to compete globally we need to be courageous in finding alternative ways to address these challenges.

Lim Hee Joo, Executive Director, WAH SON ENGINEERING” Image: Lufthansa Image:

facturing process,” said Tan Kai Hoe, president and chief execu- sensor technologies. The UK-based industry giant has already tive officer, Accuron. implemented the use of Big Data within its civil aerospace Wah Son Engineering has decided to introduce robotic welding TotalCare service offering. “We are pioneering the technol- in their flexible manufacturing cell within a year’s time. “De- ogy behind autonomous vessels, utilizing IoT, which can be spite the current market sentiments and inherent risk of failure, remotely controlled,” said Bicky Bhangu, director Singapore, we are compelled to think long-term instead of making deci- Rolls-Royce. sions based solely on an immediate-term cost-benefit analysis. Despite the challenges in pioneering new technologies, Rolls- We see this as the way forward because of the shortage of skilled Royce is a firm believer that implementing Industry 4.0- pro Singaporean welders and machinists will be a perennial issue,” cesses will add value to their operations in the future. “One of said Lim Hee Joo, executive director, Wah Son Engineering. the major challenges in the digital field is creating adequate al- 48 Rolls-Royce has also implemented a full range of processes gorithms that can integrate the whole value chain,” added Bicky within the digital sector, from software and connectivity, to Bhangu. The company has positioned itself as a systems integrator that is able to partner with clients to provide them with predictive maintenance. New simulators and AI are being developed in Singapore for the aerospace industry primarily for the military and defense industries, which need to focus on crisis-manage- ment within airports. Asia Technical Service’s partners, MASA, are developing an AI system alongside the French army, to train high-level military officials. “This constructive simulation soft- ware, with its AI, is being used within the Singapore Ministry of Defense’s think tank,” said Patrick Garez, managing director, Asia Technical Services. Although these new Serious Game type technologies are still foreign to the market, they are gradually becoming more com- mon. “I believe they will take hold of the industry and evolve incredibly rapidly,” he added. The company is creating a strategy for a 70% staff-reduction within the army based on these simulation technologies. Though most 3D and VR technologies tend to remain within the commercial segment of OEMs, the training possibilities are being explored. MROs will require a longer process of certifica- tion and approvals in order to be able to implement such interac- tive training materials within their operations. The implementa- tion of mobility, digitization and big data represent a change in the way that companies relate to customers, employees and their own processes. Various companies, such as Lufthansa Systems, are positioned to assist clients by implementing IT solutions to optimize their service offering through data analytics. Accessing and analyzing the large amounts of data that is col- lected by airlines can help them improve and even personalize

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Tan Kai Hoe “ There is no choice for precision engineering but to go up the value chain. To own the designs is key to the segment’s continued growth. We will develop new techniques and President and CEO methods for making parts more ACCURON TECHNOLOGIES cost-effectively and efficiently. ”

Could you describe your transition is both a contract manufacturer as well as complex parts, which will give the coun- from having worked as Chief Executive an OEM that designs and produces certain try an added value. International compe- in SPRING to becoming the CEO for components such as linear actuators and tition will always be present at multiple Accuron Technologies? valves. Some of our current operations are levels, such as in China, Japan and Ko- I joined Accuron Technologies a year and undertaken by subsidiaries which were ac- rea, which all have very sophisticated a half ago. Before this, I spent 25 years quired in the past decade. We continue to technologies. The goal is to continue to serving in the navy and then working in acquire companies to expand our service spearhead and be at the forefront of the SPRING Singapore, eventually as chief offering, capacity and capabilities. precision engineering industry. executive. Given my previous experience We will always watch out for disrup- in SPRING where we were facilitating the With a presence in Singapore, Malaysia, tive technologies and techniques, such 49 growth of Singapore enterprises, I wanted Thailand, China and Germany, does Ac- as additive manufacturing. It may take a to experience the chance of building up and curon Technologies have the intention to while for this to truly become prevalent growing a company directly for myself. continue growing internationally? in the aerospace industry, but I think that Yes, Accuron Technologies will continue change will take place swiftly. We will Singapore Aerospace Manufacturing to pursue its growth internationally. The also see people making use of Industry (SAM) is a subsidiary of Accuron Tech- main driver for our business is not so much 4.0, IoT, or simply automation to improve nologies. Could you describe the rela- labor costs, but rather access to the talent the manufacturing process. tionship between Accuron and SAM in pool. Certainly, labor cost is something we terms of aerospace? have to manage and there is a tendency to Based on your experience, could you Singapore Aerospace Manufacturing look for alternate locations to manufacture describe the aerospace SME market’s (SAM) was incorporated in 1981. A few more cost-efficiently. But we are mainly future trends and where you see the in- other companies were formed in the looking for locations that are not too far dustry going in Singapore and SEA in 1990s, including Dornier MedTech and from us geographically and carry the talent upcoming years? Advanced Material Technologies. In 1999 pool to serve our needs. I think Singapore’s reputation for consis- there was a decision to group these com- We will also continue to seek new partner- tency, good quality and on-time delivery panies under the Singapore Technologies ships and collaborations to jointly invest will put our Aerospace companies in good Precision Engineering (STPE) umbrella. in growth. Aerospace is a capital-intensive stead. The governmental efforts to support STPE later changed its name, finally -be area, but we are willing to take a long-term the aerospace industry through entities coming Accuron Technologies in 2005. view and invest the required capital to such as the EDB, A*STAR and SPRING SAM has also acquired other companies drive new growth. are helping the SME and micro-enterprise including German-based Sitec Aerospace segments to continually grow and reach and KLSE-listed SAM Engineering and Which are the future trends and poten- their targets much faster than they would Equipment. tial of precision engineering in Singa- if they were operating alone. Today, Accuron has two main business pore and the region? Young technology companies which of- groups – one is the SAM group and the There is no choice for precision engi- fer interesting solutions for the aerospace other is the MedTech group. Accuron’s neering but to go up the value chain. To industry are also emerging. This push for revenue stems from SAM (70%) and own the designs is key to the segment’s new innovations and technologies rep- Medtech (30%). In turn, about 70% of continued growth. We will develop new resents a potential area of growth for the SAM’s total business is aerospace and techniques and methods for making parts country and aids it in pursuing its goal of the remaining 30% is devoted to indus- more cost-effectively and efficiently. -Sin becoming a leading cutting-edge technol- trial equipment and automation. Accuron gapore is well positioned to manufacture ogy world center.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations EDITORIAL Global Business Reports

their services for passengers. IoT sensors can be used to collect data regarding tem- perature, engine performance and even passenger in-flight entertainment choices. According to Lufthansa Systems: “In the airline-passenger relationship, process digitization and data usage are the key to differentiating oneself from the competi- tion by offering personalized products and services.” Despite Singapore’s clear footprint within the realm of future technologies, the rapid growth experienced in the surrounding emerging markets is also placing pressure on the country to continue innovating and improving. “As countries in the region develop and modernize, the gap that cur- rently makes Singapore stand out from the rest will certainly narrow. This means that continuous innovation is indispens- able,” said Christophe Potocki, general manager, sales, ATR. The continuous pursuit to spearhead the development of smart technologies and Big Data processes remains at the heart of many Singapore operations. UAVs are also an area of high interest 50 for the Singapore aerospace industry, and the EDB aims to explore all the ways in which research institutions can partner with companies working in the field. The Skyways Experimentation Project will be running UAS trials in Singapore to develop the necessary aerial avenues for parcel deliveries within the country’s ur- ban landscape. The project will run in two phases, the first will be the creation of a network of parcel stations within NUS campus in order to deliver urgent docu- ments. The second will involve deliver- ing objects such as electronic parts and medicines. The “Civil Aviation Authority of Singapore (CAAS) has signed an MoU with Airbus to experiment with delivery drones,” said Tan Kong Hwee. The EDB, A*STAR and the CAAS, along with Universities such as NTU, are un- dertaking the incredibly challenging feat of experimenting with UAVs to determine the extent to which these new technolo- gies can aid the increasingly demanding market in the country. With the level of investment and know-how in the country, Singapore is well positioned to lead the way and determine the ways in which the world can implement new technologies to assist the operations of the aerospace industry. ▬ Image: Rolls-Royce Image:

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Could you describe your goals for Mit- actively involved in Earth observation, subishi Electric Asia? satellite positioning, communication sat- Mitsubishi Electric Asia is a represen- ellites, and even explorers to the Moon tative office for our space business that or Mars. Singapore’s space business core meets with customers and assists our focus is Earth observation, and they are headquarters in Japan to negotiate on looking for smaller and more compact satellite deals. We promote our products spacecraft for operations, which is an via conventions and conferences. Mit- overarching trend. subishi Electric as a whole considers the Many companies are launching small aerospace sector as one of the growing and high-performance Earth observation sectors within our business. Within this, satellites. Since Mitsubishi Electric also we have an important focus on the space has many experiences in Earth observa- sector, where we are looking to continue tion spacecraft, we may be able to pro- growing through on-going investment vide some space units and components and product lines. Mitsubishi Elevators is for spacecraft being manufactured at the another division within the company, and universities or by a manufacturer. they specialize in escalators and elevators Ryuta exclusively. What is the importance of implement- Mitsubishi Electric has a satellite standard ing Industry 4.0 processes in the manu- Suzuki platform called DS2000, which has been facturing space business? implemented on many civil and commer- The goal of automation within the space cial satellites. We are planning a develop- business is to revolutionize the way in ment program to enhance our spacecraft which we manufacture satellites, because capabilities with the aim to double our they have to be produced cheaply. It is capacity by 2021. HTS (high-throughput becoming increasingly important to auto- satellite) is becoming increasingly impor- mate some of the processes that are cur- 51 General Manager tant to provide more throughputs to the rently undertaken manually. Though this end users. Powerful and compact satel- MITSUBISHI ELECTRIC ASIA evolution is not taking place at a global lites are necessary due to higher power scale yet, I believe that it will inevitably demands by the HTS payloads to put happen very soon. Additive manufactur- many beams on the ground. In 3-5 years ing will become much more focused than we hope to be providing this powerful it is presently. The revolution for space- HTS satellite to all of our satellite cus- craft manufacturing processes has already tomers by completing this development. started with the introduction of 3D print- Though the satellite clients in Singapore ers. If this is implemented in a more ag- are few, we expect demand to increase in gressive way, perhaps in five to 10 years the Asia Pacific region in the longer term. we may see more complicated and com- Singapore is very conveniently located to pact spacecraft being manufactured by “ travel to other countries in the region. We 3D printers. Singapore’s space business core take advantage of this easy-access to ex- focus is Earth observation, and they pand our business. Our vision is not just The Singapore Government is encour- are looking for smaller and more for Singapore, but for Asia Pacific and aging businesses to develop their own compact spacecraft for operations, India. IP products. Could you describe how which is an overarching trend. Mitsubishi Electric applies this to the In which way is Mitsubishi Electric in- space sector? volved with Singapore’s space sector In terms of the space business, Mitsubishi and could you highlight your service Electric produces everything in-house. offering within it? We have our own engineers, product line, ” Mitsubishi Electric’s space department manufacturing facilities and test facili- in Singapore started operations about 10 ties. Nonetheless, it would be important years ago to promote our space products to create an engineering center that could mainly within the SEA and AP regions. interact directly with the customer to un- Singapore has a somewhat limited com- derstand their satellite needs, and develop mercial space business capacity, but is draft plans that reflect this. We could then very active in the field of observation relay the information back to the factory satellites and nano-satellites. We are also to build the products.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations Image: Addvalue GBR • Industry Explorations • SINGAPORE AEROSPACE 2017 SPACE

"The Singapore Space industry is well positioned through its commercial and pragmatic approach, developing niche capabilities that augment the future digital economy.”

Jonathan Hung, President, Singapore Space and Technology Association EDITORIAL Global Business Reports

at the moment, but it certainly has a long- term roadmap of space development in Introduction to Space the pipeline. Companies like ST Electron- ics and smaller SMEs have successfully By Elisa L. Iannacone and Alice Pascoletti launched their own satellites and are pav- ing the road for Singapore’s international space recognition. Space-based equipment manufacturers developing satellite com- ponents, sensor systems and materials Though it is mostly known for commer- the region. “We encourage public-private can seek collaborations with Singapore’s cial aviation and MRO, Singapore has an collaborations as part of our effort to trans- research entities, such as the Data Storage awakening space industry that is looking late research into commercial products and Institute (DSI) and Institute of Microelec- to develop key competences to become services,” said Beh Kian Teik. tronics (IME). an industry leader within a niche part of Creating a rich environment for the space Beyond commercial satellite integration, the market. With 30 active companies industry, where companies can leverage on companies can turn to Singapore to de- and a workforce of over 1,000 profes- Singapore’s extensive engineering know- velop satellites and new technologies with sionals, the Singapore space industry has how and R&D, is in the making. With two the universities. Both NTU and NUS run grown dramatically since 2011, when only main focus areas, the design and manufac- development programs exploring forma- 150 researchers were covering the sec- ture of small Smart satellites and the ad- tion flying, altitude and propulsion sub- tor. “Over the next five years, the indus- vanced application of satellites, Singapore systems, among several others, for micro- try will continue to employ an additional may not have a large quantity of products 300 professionals across the entire satellite value chain, from engineering to service provision,” said Beh Kian Teik, executive director, Office for Space Technology and Industry (OSTIn), EDB. Singapore’s closeness to the Equator makes it a strong location for satellite 54 testing to take place. “We can receive very high-coverage with only one satel- lite given that each orbital period lasts approximately 1.5 hours. To achieve the same results further north, we would need to deploy a constellation of satellites,” said Dr. Erick Lansard, vice president, techni- cal and space development, Thales Solu- tions Asia. Since 2011, Singapore has launched 11 small satellites. Leading satellite opera- tors, such as Inmarsat, Intelsat and Eutelsat have started basing operations in the coun- try, which is also pushing the Singapore space industry to comply with the highest industry standards and develop cutting- edge products. With an increased focus on micro- and nano-satellites, Singapore seeks to devel- op New Space Engineering technologies through advanced R&D to improve satel- lite performance. Six small locally built satellites were launched by Singapore in December 2015, showcasing the coun- try’s engineering capabilities. The EDB created the Office for Space Technology and Industry (OSTIn) in 2013 to support the growth of the industry and further de- velop New Space opportunities, as well as New Space applications and services in

Image: Addvalue

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

and nano-satellites. “From the university keen to develop space technologies, espe- nano-satellites can be controlled to com- research satellite standpoint, we will prob- cially within the field of satellites, can come municate with GEO satellites to allow for ably see between four to five satellites de- to Singapore and make use of its extensive direct internet links to the satellite without signed, built and attempted to be launched R&D strengths. Previously having signed the need for a ground station. With a total every two to three years,” said Jonathan a collaboration agreement with the French of seven satellites in space, NTU is leading Hung, president, Singapore Space and Space Agency, CNES, the EDB also signed the way in terms of data monitoring and Technology Association. a MoU with major satellite operator SES new technologies that can be implemented Developing larger payload capacity for to explore next-generation satellite tech- for space monitoring activities. satellites is a core focus for new satellites nologies, such as the design, prototyping The first Singapore satellite launched from being built in the country. On-board pro- and production of technologies for satellite the International Space Station took place pulsion is another aspect that has started mobility applications in the aeronautical, successfully on January 16th, 2017 as a appearing on nano-satellites, making way automotive and maritime sectors. collaboration between NTU and Kyutech. for formation flying. “This is a very- im NTU has established a 24/7 mission con- The AOBA VELOX-III contains a micro- portant and recent development, and it is a trol center for monitoring the satellites propulsion system that is capable of double key to enabling technology that Singapore they have in space. The VELOX-CI has the satellite flight time in space. This tech- is positioned to develop,” said Dr. Erick been in space since December 2015 and nology tester will allow for more elaborate Lansard. is mainly used for monitoring climate missions in the future. Another joint satel- Singapore is developing international part- through GPS signals that generate data lite is scheduled to be launched in 2018. nerships within the space industry through on items such as pressure, humidity and With the technologies demonstrated by the OSTIn. Companies and space agencies temperature. The VELOX-II proved that two satellites, NTU and Kyutech are aiming to jointly develop a future lunar mission. Despite Singapore’s major space achieve- ments, the major challenge experienced by the space sector is convincing the world that the necessary capacities and capa- bilities for a successful space industry are present in the country. Although Singapore does not yet have a Space Agency, players 55 in the sector are aiming to continue grow- ing the right technologies to position the industry on a global playing field. Devel- oping commercial space products is key to the long-term sustainable vision for the country. Companies looking to invest in space projects are encouraged to leverage Singapore’s advanced technological offer- ing to launch their ideas more quickly and with a strong partner. Companies looking to grow internation- ally can turn to Singapore as a launching pad into ASEAN countries, as well as the SEA and the Asia Pacific regions. To successfully commercialize satellite solu- tions, a collaborative environment that has the support of the government, the indus- try and the institutions is indispensable, which is exactly the kind of offering that Singapore can supply. Singapore also sup- plies the necessary financial backing as a tax-friendly environment to support com- panies looking to finance their projects with a base in the country. Though further government investment will be necessary to take the industry to the next level, the wheels have been set in motion to create a strong space industry that is capable of de- veloping new technologies that will have a ripple effect across the globe. ▬

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Jonathan “Singapore is active in Earth observation, telecommunications and navigation Hung services, as well as small satellite design and manufacturing.

President SINGAPORE SPACE AND ” TECHNOLOGY ASSOCIATION

Singapore does not have a dedicated lites going into Space on an annual basis cessing), which is based at NUS, has been Space agency. Could you describe the due to our desire to get the basics and operating as a non-profit ground station, role that the Singapore Space and Tech- foundation right, but there is a pipeline receiving and processing imagery from a nology Association plays? and ready potential to steadily increase wide range of remote sensing satellites. Although Singapore’s aerospace output our output capacity. From the university They are recognized domain experts and is strongly MRO based, we are home to a research satellite standpoint, we will prob- an integral component of our local Space fairly established base of companies de- ably see between four to five satellites ecosystem, providing dedicated ground voted to Space and telecommunications. designed, built and launched every two to station services to a global clientele. The Singapore Space and Technology As- three years. sociation was founded to support the de- There are plans for our next range of satel- What future trends can we expect to 56 velopment of the Space industry through lites to allow for larger payload capacity. see in the future for the Singapore B2B growth initiatives. We provide sup- Due to the primarily commercial nature Space industry? port to the companies operating within this of our domestic space companies, there is It is becoming increasingly important for sector given that Singapore does not have a highly focused and deliberate approach governments to justify Space exploration a dedicated space agency. to developing innovative, yet commer- in terms of social and economic returns. Singapore is active in Earth observation, cially sustainable programs. Homegrown This means decreasing mission costs, in- telecommunications and navigation ser- Space companies such as ST Electronics creasing efficiency and mission life, and vices, as well as small satellite design and SMEs have grown and successfully pursuing research and experiments that and manufacturing. We support partner- launched their own satellites and payloads, have potential to improve aspects of life ships between all companies and organi- proving the model works. They are lead- on Earth. The Singapore Space industry zations. At the moment we represent 30 ing the way in Singapore in terms of satel- is well positioned through its commercial corporate members, which are both local lite development and continue to embrace and pragmatic approach, developing niche and international. global partnerships. capabilities that augment the future digital economy. The SSTA continues to encour- What will the Singapore Space industry’s What kind of services does Singapore age our domestic space ecosystem to seek core focus be over the medium term? offer in terms of Earth observation? international, mutually beneficial partner- Singapore has been making positive strides Providing high-resolution, optical im- ships, spur growth in the region, and per- in satellite development, especially so over agery on-demand is a strong market for haps be a regional hub for cutting edge the last decade that saw successful launches Singapore. TeLEOS-1, ST Electronics’s Space innovation. of locally built satellites. The market is domestically built and recently launched To achieve all of the above, we recognize made-up of small satellite manufacturing, satellite is positioned at a near equatorial the need to build a strong talent pool of services and applications, satellite subsys- orbit, differentiating itself over traditional budding Space engineers and scientists. tems and technology advancements. polar orbiting satellites. This allows for The SSTA focuses heavily on Space educa- Singapore has two focus areas which we higher revisit rates, and is highly useful for tion initiatives, drawing on local talent, and are aiming to further develop: the design a wide range of commercial, research and partnering global experts to build and sus- and manufacture of small, “Smart” satel- security clientele that need good imagery tain interest: an interest and culture among lites, and the advanced applications of sat- on demand. our youth to be highly passionate about sci- ellites. Most institutions have a roadmap We are home to some of the best imagery ence, be at the forefront of technology, and of five to 10 years, and manufacturing a processing capabilities in the region. For create a meaningful future for the global satellite typically takes two to four years. the past two decades, CRISP (the Centre society. That, I believe, is at the heart of all We might not see large numbers of satel- for Remote Imaging, Sensing and Pro- of us within the Space community.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports INTERVIEW

Beh Kian “ Singapore already has a small but Teik vibrant satellite industry, with over 30 companies creating high value jobs for more than 1,000 professionals engaged in a wide range of activities. Executive Director, Office for Space Technology and Industry (OSTIn) SINGAPORE ECONOMIC DEVELOPMENT BOARD (EDB) ”

Since when has the EDB supported Space Singapore’s space industry has grown rap- One of OSTIn’s core missions is to forge operations in Singapore and what is your idly. From a base of 20 researchers in 2011, collaborations between Singapore and the vision for the Singapore Space industry? we now have a community of over 150 re- international space community on space The Singapore Economic Development searchers working on satellites. Over the initiatives. In 2015, EDB signed a Letter of Board established the Office for Space next five years, the industry will continue Intent with French space agency CNES to Technology and Industry (OSTIn) in 2013 to employ an additional 300 professionals explore possible areas of collaboration in to pursue “New Space” opportunities. Our across the entire satellite value chain, from satellite component development. In June initial efforts are focused on small satel- engineering to service provision. 2016, EDB also signed a MoU with ma- lite applications and technologies. This jor satellite operator SES to explore next- involves building up the small satellite With an increased focus on micro- and generation satellite technologies, such as capabilities of our public research institu- nano- satellites in the country, what the design, prototyping and production of 57 tions through competitive grant calls and niche Space roles is Singapore trying to technologies for satellite mobility applica- small satellite missions. We encourage develop competencies in? tions in the aeronautical, automotive and public-private collaborations as part of We seek to develop a technology edge in maritime sectors. Beyond these partner- our effort to translate research into com- New Space engineering, through invest- ships, EDB also looks forward to future mercial products and services. OSTIn also ments in R&D which improve the miniatur- engagements with members of the interna- supports companies that are interested in ization of components while simultaneous- tional space community for mutual growth leveraging Singapore to innovate and de- ly improving performance. As more small and development. velop “New Space” applications and ser- satellite constellations come online, we are vices. Our long-term vision is therefore to also exploring building up capabilities that In which ways will developing Earth ob- create a vibrant Space ecosystem for Sin- enable richer features and functionalities servation and telecommunications tech- gapore, where companies can tap into our such as propulsion technology, constella- nologies aid the aerospace sector? deep engineering and research capabilities tion management algorithms, and more. The use of satellite data (e.g. satellite im- to innovate and export “New Space” prod- In Dec 2015, six small satellites built by ages) is well understood in the context of ucts and services. Singapore-based entities were launched defense and military intelligence applica- into Space, a testament to Singapore’s in- tions, so we will focus on the opportuni- Could you provide a brief background digenous small satellite engineering capa- ties in the Satellite-enabled tracking tech- of Singapore’s space industry? bilities. This positions Singapore well to nologies that can help pilots and ground Singapore already has a small but vibrant capture the growth of the New Space econ- station crew track the location of aircrafts satellite industry, with over 30 companies omy, with the burgeoning of new product which can help to raise early alerts in event creating high value jobs for more than ideas and markets for satellite-enabled ap- of anomalies, and expedite search time in 1,000 professionals engaged in a wide plications. With our strengths in electronics cases of missing aircraft. The data could range of activities – from the design and and ICT, we believe Singapore can play a also help airlines better plan their route manufacture of Space components, to substantial role in this new growth phase of and optimize fuel savings. We see satellite the provision of satellite-based services. the satellite industry. It will be an exciting enabled telecommunications, especially in Since 2011, Singapore-based entities have time ahead. the form of High Throughput Satellites, as launched 11 small satellites, and major sat- improving the overall inflight experience ellite operators like SES, Inmarsat, Intelsat Is Singapore developing key interna- for passengers by providing seamless, high and Eutelsat, as well as startups such as tional partnerships within the space in- speed connectivity. Such developments Astroscale, Spire and Microspace all have dustry? If so, with who and with which could also open up opportunities for new significant presence in Singapore. Indeed, purpose? applications in the airline industry.

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations EDITORIAL Global Business Reports

and communication service providers, such as , Thuraya and Intelsat have Satellite and opted to base out of Singapore, leveraging on the country’s well-established infocom- ms and aerospace industry. Telecommunication “We have reached a point where every- body is using navigational satellite tech- nology, whether explicitly or not,” said Innovations Christine Koh, market development di- rector, Spacetime Technology. Sensors By Elisa L. Iannacone and Alice Pascoletti and Global Navigation Satellite System (GNSS) chip-sets and receivers are used for air navigation, cellphone GPS appli- cations, photo geocoding and even social As intelligent satellite based services ex- improve their operations. Singapore’s networking. The broad usage of these pand, companies are realizing the impor- Centre for Remote Imaging, Sensing and technologies also poses some risks for the tance of utilizing analytics to process Big Processing (CRISP) has the capacity to security and defense realm, where impor- Data for improved performances, as well complete SAR, multi and hyper-spectral tant country targets or networks could be as implementing IoT, and IDRS technolo- data analysis. The Institute for Infocomm disclosed unwillingly. Companies and ser- gies. Remote sensing has become indis- Research (I2R) and the Institute of High vice providers are trying to find the neces- pensable for disaster management, preci- Performance Computing (IHPC) are oth- sary balance between advancing technol- sion farming, climate change monitoring, ers exploring the many possibilities for ogy and protecting their clients. “The main urban planning and mineral exploration, as sat-coms. consumers for these GNSS technologies has satellite-based communication for the Singapore is not lacking in telecommu- are governments and large corporations maritime and aerospace industries. Many nications opportunities. Communications that need Big Data for their decision mak- R&D institutions are present in Singapore equipment manufacturers, such as Addval- ing processes. Smaller SMEs are still not for companies to explore the multitude ue Technologies, are providing services to implementing these, but we will see that 58 of possibilities for which satellite-based lead service providers that rely on satellite the trend will change rapidly in years to services and telecommunications can technologies. Multiple satellite operators come,” added Christine Koh. Image: Nanyang Technological University (NTU) Technological Nanyang Image:

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

Launched in October 2015 with the sup- analysis, these technologies can even help data service for LEO satellite operations, port of the EDB and GLAC (GNSS and aircraft save on fuel costs and strategize connecting them to higher-orbit GEO sat- LBS Association of China), Spacetime their routes better. The center is research- ellites, allowing for 24/7 on-demand re- Technology’s Singapore Centre of Excel- ing Synthetic Aperture Radar (SAR), as sults. The Addvalue IDRS services aim to lence (CoE) was created as the first -ad well as multi- and hyper- spectral data be commercialized no later than the year vanced incubator for GNSS and LBS in analysis. High throughput satellites (HTS), 2020. Asia. Its goal is to develop new technolo- a type of communication satellites that Beyond space exploration, Singapore has gies and innovate processes in order to provide over twice the total throughput of been involved in the development of an generate new solutions for the industry. a traditional FSS satellite, are being used European Spaceplane through EADS As- “With a strong focus on making operations to explore new opportunities and applica- trium, to make commercial sub-orbital easier for businesses and having an impact tions within the aerospace industry. flights possible. The aircraft is being- de on people's daily lives, Spacetime Tech- Addvalue has also been exploring Inter- veloped by Airbus and aims to carry four nology has the aim to launch technologies Satellite Data Relay Systems (IDRS), passengers up to 100 Km above sea-level. that can revolution the market,” said Ping which are a means to addressing the ‘on- OSTIn remains keen on attracting compa- Teck Huat, CEO, Spacetime Technology. demand’ obstacle that LEO satellites were nies around the globe that intend to inno- IoT was implemented for M2M (Machine unable to overcome on their own Addval- vate and develop new technologies to posi- to Machine) applications nearly eight ue launched an IDRS terminal aboard the tion Singapore as an advanced-technology years ago for the oil and gas sector and VELOX II, supplying a two-way IP based hub in the region and the world. ▬ technology has evolved significantly since then. “Addvalue is active in the IoT arena as the ubiquity and reliability of satellite communications are essential to comple- The goal of automation within the space business is to revolutionize the way ment the terrestrial communications to “ in which we manufacture satellites, because they have to be produced cheaply. It fulfill the insatiable desires of connectiv- is becoming increasingly important to automate some of the processes that are ity in any industry,” said Tan Khai Pang, currently undertaken manually. Though this evolution is not taking place at a global chief technology and operating officer, -Ad scale yet, I believe that it will inevitably happen very soon. Additive manufacturing dvalue Technologies. will become much more focused than it is presently. The revolution for spacecraft Earth observation and remote-sensing 59 applications are now amply used by lead manufacturing processes has already started with the introduction of 3D printers. If global players. High-resolution optical this is implemented in a more aggressive way, perhaps in five to 10 years we may see services have become a strong offering more complicated and compact spacecraft being manufactured by 3D printers.” within the Singapore market. Singapore’s first commercial Earth observation -satel lite, ST Electronics’s domestically built Ryuta Suzuki, General Manager, MITSUBISHI ELECTRIC ASIA ” TeLEOS-1, was launched from India on December 16th, 2015. Five more home grown satellites were launched alongside it. The TeLEOS-1 is near an equatorial or- It is always the commercialization of technologies that spurs more activities bit and allows for higher re-visit rates as “ in the industry, which is why there is a strong push to try to commercialize nano- well as providing services for research in- satellites. The commercial nano-satellite market is venturing for a breakthrough in stitutions and security companies. “Many business model. new and impactful applications could be demonstrated in/from Singapore for both military and civilian needs, for instance Lim Wee Seng, Executive Director, School of Electrical and Electronic Engineering,” in the fields of Earth observation, meteo- NANYANG TECHNOLOGICAL UNIVERSITY oceanography, navigation, data collect, telecommunications etc., leveraging on Thales excellence in optical and micro- wave satellite payloads, platforms and systems,” said Dr. Erick Lansard, vice- “ Singapore is a solid location to test satellite technologies because it is located president for technical and space develop- close to the equator, which allows for higher performance results. We can receive ment, Thales. very high-coverage with only one satellite given that each orbital period lasts The Centre for Remote Imaging, Sens- approximately 1.5 hours. To achieve the same results further north, we would need ing and Processing (CRISP), based out of to deploy a constellation of satellites. NUS, has been processing satellite images for the last 20 years as a non-profit ground station. Their imagery can be used across Dr. Erick Lansard, Vice-President for Technical and Space Development, ” the value chain, but when paired with data- THALES

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Dr. Colin Chan and and Tan Khai Pang

CEO and Chief Technology & Operating Officer ADDVALUE TECHNOLOGIES

Could you give us some background in- Our one-stop-shop product development erating many mega cross-border projects formation about Addvalue Technologies capabilities and our core competency in in the ASEAN region. We are ready to tap and its relevance to the aerospace indus- sophisticated satellite communications into such opportunities as our proven satel- try in Singapore? technologies stand us out as a unique, in- lite and digital communications technolo- Colin Chan: Addvalue was incorporated novative company in the world of satellite gies and our knowledge in the region place in 1994 to provide design services targeting communications. We have also been pro- us in good stead to partner with the China- the consumer electronics industry. In 1999, viding sophisticated design services related based companies for the joint development we expanded our market focus to the satel- to digital communication technologies for of relevant products and services. lite industry and designed a digital satellite Singapore government-linked companies receiver for Sirius Satellite Radio. The com- and organizations that are involved in aero- Talk is rife about the Internet of Things 60 pany was listed on the Main Board of the space applications. We hope to forge part- (IoT) these days and there are great ex- Singapore Stock Exchange in the year 2000. nership with commercial companies in the pectations for market growth through it. Two years later, we made a major break- aerospace industry. What is Addvalue's plan on this front? through into the satellite communications Khai Pang: Addvalue offered a few satel- industry by procuring a significant contract What opportunities does Addvalue have lite communication products for Machine- to design a portable satellite terminal for In- in China and the ASEAN region, as they to-Machine or M2M applications in the oil marsat. In 2006, we successfully launched are among the highest growth markets in and gas and energy industries almost eight our first mobile satellite communications the world? years ago. These M2M applications are product. Since then, Addvalue has effec- Colin Chan: We already have a wholly- akin to a kind of IoT solution that connects tively morphed into an entity which focuses owned subsidiary operating in China to machines end to end via a satellite com- only on the satellite and digital wireless help us identify and develop partnerships munications network. As the IoT enabling communications market. To date, we have to tap into the immense market potential technologies continue to evolve, new ap- developed and commercially launched a full for satellite communications. While we plications will fuel the need for connectivi- array of satellite communications terminals have garnered strong market shares in the ty with anything, at anytime and anywhere. for land and maritime applications. Chinese fishing vessel market, we are also Addvalue is active in the IoT arena as the In 2013, with the financing grant provided cultivating opportunities in the general avi- ubiquity and reliability of satellite com- by the Singapore Government, Addvalue ation market and the LEO satellite industry munications are essential to complement embarked on an ambitious project to con- in China. the terrestrial communications to fulfill the duct a proof-of-concept for an innovative Through partnerships, with integrators insatiable desires of connectivity in any in- inter-satellite data relay system (IDRS). and resellers in the region, Addvalue has dustry. Addvalue is working diligently to The innovation will enable real time on de- also been making headway into the ASE- deliver satcom-based backhaul platforms mand communications with any Low Earth AN market, particularly in the Philip- that aggregate data from or disseminate Orbit (LEO) satellite - a challenge faced by pines, Vietnam, Indonesia and Malaysia, data to a multitude of IoT nodes over a all LEO satellite operators today. Addvalue tapping into opportunities from govern- satellite network. One of the key IoT ap- launched its Velox-II LEO satellite in De- mental and enterprise projects, ranging plications lies within a very wide area of cember 2015 and successfully validated the from fishing management and environ- remote sensing, and, in this regard, devel- proof-of-concept after more than a year of mental surveillance to smart grid, and oping product technologies that allow large continuous testing. Addvalue shall further smart cities connectivity. numbers of small sensors to have direct develop this technology and aim to com- Furthermore and synergistically, the “One satellite access shall also be a core part of mercialize the Addvalue IDRS services no Belt, One Road” initiative promulgated by the product development strategy for Ad- later than 2020. China will have a direct impact on accel- dvalue over the next two years.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EXPERT OPINION

nal suitable for deployment on small LEO satellites. The aim being to provide eco- Solving an Age-old nomical low latency, on-demand data com- munications known as Inter-Satellite Data Relay System (“IDRS”) services to support Problem that Vexes All LEO satellite operations. The Addvalue IDRS service will operate via the highly reliable Inmarsat I4 constellation and its Commercial Low Earth BGAN network and be made available to LEO satellite operators across the globe. Supported through a grant provided by the Orbit Satellites Office for Space Technology and Industry (OSTIn) of the Singapore Economic De- By Tan Khai Pang, Chief Technology and Operating Officer, velopment Board (EDB), Addvalue devel- Addvalue Technologies oped its first space-resilient communica- tions terminal. An intermediate outcome of this endeavor is the realization of the Velox-II project, which involves a nano- Since 2012, a key strategic move has been This delay in restoration of LEO satellite size LEO satellite that carries the Ad- to develop a communications service to service can have significant economic dvalue communication payload for con- improve the operational efficiency of the impact. Real-time mission tasking is cur- ducting the IDRS technical trial over the expanding Low Earth Orbit (LEO) satel- rently not possible since the LEO satellite Inmarsat BGAN network. Developed in lite based business. With its IDRS service, operator must wait for the next available collaboration between Addvalue and Nan- Addvalue plans to participate in this mar- scheduled ‘fly-over-Earth-station’ session. yang Technological University (NTU), the ket, one that is projected to grow rapidly in With IDRS, LEO satellite operators can Velox-II was launched on 16 December the years to come. rapidly respond to data collection oppor- 2015 and has been undergoing over a year Since the beginning of the Space age, tunities that would otherwise be missed. of in-orbit tests. These tests have fully virtually all non-synchronous satellites Applications that need longer sessions demonstrated the technical feasibility of have operated with very limited non-real than the ‘fly-over-Earth-station’ time slot Addvalue IDRS operation over the Inmar- 61 time communications support. Only the are not possible under the current scheme sat BGAN network. most important missions, such as manned of rigid operations. There has been an in- The Velox-II’s IDRS payload fits into a launches and some US military satellites, crease in the use of more than one LEO 2-U physical size and weighs less than are supported by 24/7 on demand data satellite configured in a constellation for 2kg. The Addvalue IDRS terminal will links. LEO satellites typically circle the more sophisticated missions. The need for be a good fit for LEO satellites of down Earth in less than 130 minutes and ap- more real-time communications among to nano-scale (100Kg or lighter). Capable pear to move very swiftly to an observer these LEO satellites operating in a coor- of supporting data rates in excess of 100 on the ground. Currently the vast major- dinated manner is crucial for such opera- Kb/s, the Addvalue IDRS solution is ca- ity of LEO satellite missions are sup- tions. Last, but not least, with IDRS the pable of providing on-demand 24/7 data ported by networks of a small number of cost and duration of the commissioning connection services and mid-size data ground Earth stations distributed around period for new LEO satellites is greatly transfer. This is certainly a game changer the globe. Due to the limited number of reduced. in the existing way most commercial LEO Earth stations and the speed of the LEO What Addvalue has tested is the technical satellites are operating their telemetry and satellites, these ground Earth stations can feasibility of leveraging a commercially command communications. By eliminat- only provide intermittent communications available Geosynchronous Earth Orbit ing the in-sight-of-an-Earth-station limita- services. To date, a typical LEO satellite (GEO) satellite constellation system as a tion and providing an on-demand real-time is supported by from one to 10 minute means to relay data to and from an orbiting communications link to LEO satellites, long communications sessions, or passes, LEO satellite so as to provide on-demand, Addvalue hopes to provide a reliable plat- a day. Thus communications with a LEO near real-time data link services. form for new market opportunities for satellite are currently unavailable for long Historically, Addvalue has been involved LEO satellite operators in the foreseeable periods of time. Furthermore, this limited in the development of sophisticated mo- future. availability is rigidly set in advance by the bile satellite communication terminals The in-orbit testing of the Addvalue’s characteristics of the LEO orbit and the compatible with the Inmarsat I4 constel- IDRS terminal on Velox-II will continue location of the supporting Earth stations. lation BGAN network since 2004 - before to provide valuable test data for our engi- This imposes limitations on how LEO the launch of the Inmarsat I4 constellation neers to analyze and improve the design satellite operations can be effectively and itself. Building upon these many years of for commercial purposes. Concurrently, efficiently conducted. For instance, any experience, and with a view to expand its Addvalue is in discussion with several anomaly on board the LEO satellite cannot business beyond traditional Earth-bound leading industrial players in the LEO sat- immediately be reported to the satellite op- markets, Addvalue began in 2012 to ex- ellite industry to launch commercial IDRS erator for diagnosis and quick resolution. plore the feasibility of developing a termi- service no later than 2020. ▬

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations INTERVIEW Global Business Reports

Could you highlight a few of the partner- cal backing, we are a trustworthy partner ships and projects that Thales has devel- with over 43 years of experience within oped for the Singapore space sector? Singapore. Our R&D operations started 15 Singapore has a strong interest in small years ago within the military and we are satellites (under 150-200 Kg). In support the partner of choice for Singapore’s Min- of that, Thales in Singapore has created a istry of Defense. Research and the subse- Space Centre of Excellence for Research quent technologies remain the backbone and Technology (R&T) as well as devel- of our company, and in collaborating with oped a partnership with the Nanyang Tech- our stakeholders, we believe that the key nological University (NTU), which has to sustainable partnerships is to work on been the frontrunner for satellite research R&D together. amongst Singapore’s academic institutions. We have created a joint laboratory named Why is Singapore a strong location for S4TIN (Smart Small Satellite Systems – Thales’ space operations? Thales in NTU) where we develop new Singapore is a solid location to test satel- concepts and new technologies, leverag- lite technologies because it is located close ing on CINTRA, a joint lab between NTU, to the equator, which allows for higher Dr. Erick CNRS and Thales, that is focusing on nano- performance results. We can receive very electronics and nano-photonics. high-coverage with only one satellite given Lansard NTU is a strong partner for small satellite that each orbital period lasts approximately platforms and skill-set development, while 1.5 hours. To achieve the same results fur- Thales is focusing on the missions relevant ther north, we would need to deploy a con- for small satellites, though we remain inter- stellation of satellites. Whenever we want ested in larger satellites and stratospheric to ramp up a new service, for instance, it platforms. We are exploring all of these at is good to first deploy it on the equatorial 62 our corporate R&T center in Singapore, one belt, between +/-15 degrees latitude. This of the five in the world, from the develop- will enable us to later expand it to a global Vice-President for Technical and ment of piggy-back payloads, to large satel- coverage. Space Development lites and telecommunications. We have also There is also the benefit of having demand- THALES created the first regional Thales Innovation ing customers in the high-tech space in Sin- Hub in Singapore, where, alongside our gapore. This means that our operations are main customers and end-users, we create always held to the highest standards, which new disruptive solutions together. allows Thales to develop the best products The target is not only to fly prototypes, but for the future. also to develop new industrial systems that could be manufactured locally in partner- Which new developments can we ob- ship with local actors, and new applications serve with nano- and micro- satellite “ We have also created the first and services. Naturally, the intention is to technologies? regional Thales Innovation Hub in address the global market, starting with For example, nano-satellites are starting to Singapore, where, alongside our the equatorial belt region. Beyond our col- have some on-board propulsion, which is laboration with the Singapore Ministry of main customers and end-users, opening the door to formation flying or fly- Defense, we are also exploring new part- ing alongside a large satellite. This is a very we create new disruptive solutions nerships with local partners for civilian important and recent development, and it is together. missions. a key enabling technology that Singapore is positioned to develop. How important are the areas of re- Many new and impactful applications could search, development and technology for be demonstrated in/from Singapore for both ” Thales? military and civilian needs, for instance in Out of a total pool of 62,000 employees the fields of Earth observation, meteo- worldwide, Thales Group has one-third oceanography, navigation, data collection, of these employees working on engineer- telecommunications etc., leveraging on ing research and technology activities. We Thales excellence in optical and microwave invest 20% of our revenues into research satellite payloads, platforms and systems. and development and deeply believe that In the long run, these new developments technology can bring great value to our should impact the growth of satellite activi- operations. Given our strong technologi- ties in Singapore.

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports EDITORIAL

are changing the landscape of the industry world-wide. Though Singapore will not be Conclusion able to compete in all-things space given its land limitations and young space industry, By Elisa L. Iannacone and Alice Pascoletti its potential to become a niche-technology hub is well on its way to being realized. It may still take some time to create a na- tional space agency, but the general senti- Although Singapore has only been a coun- in the industry are also an indication that ment of the companies operating within the try for just over 50 years, the rate at which companies are here to stay and are con- space realm is that it will inevitably come. its industrial capabilities and capacity have tinually expanding and investing into their New IoT sensors are being implemented grown is extraordinary. The government’s operations. The expansion plans at Changi across the board to explore all the data that push for developing the country through Airport are a way of planning for the fu- can be processed through data analytics. the EDB, A*STAR and SPRING has aided ture in order to avoid the congestion that Some have referred to the importance of dozens of companies in the pursuit of es- is currently experienced by many cities in developing ways in which machines and tablishing their operations successfully in the region, including Hong Kong, which is infrastructure can communicate amongst Singapore. Both SMEs and MNCs have another regional hub. SAP has become a themselves in order to make M2M deci- the well-established regulatory framework tight knit community of industry giants, as sions. Exploring the ways in which both to support each of their needs. There is an well as national companies that are look- space and Industry 4.0 technologies can overall ease of doing business in the coun- ing to collaborate with others within the be implemented and commercialized is try, where businesses can trust that they sector. Once again, Singapore’s history of of great importance to the industry today. are in reliable hands, and although the cost surviving on the back of mutual coopera- Justifying the cost of both automation and of living and skilled labor is continuously tion and collaboration resonates across the space exploration is becoming more dif- on the rise, tax benefits, 24 hour customs aerospace industry. ficult, but if ways to impact business op- clearances, airport expansions, infrastruc- Singapore’s push to becoming a cutting- erations on Earth can be addressed at the ture, numerous R&D institutions and a edge technology leader is also rippling same time, the speed at which these will prime geographical position are only a across the industry. R&D centers are in- take place will increase substantially. few of the reasons why companies decide vesting heavily in the development of au- Singapore is in the midsts of developing a 63 to operate from Singapore as a hub in the tomation, robotics, VR, IA, and UAV tech- strong talent pool of trained professionals Asia Pacific Region. nologies, which can all be implemented in and manpower that can assist the industry The aerospace industry is a driving force order to aid the skilled labor shortages in and meet its needs. Despite the costs and behind Singapore’s growth. With a strong the country and improve a company’s op- resourcing challenges, Singapore remains MRO position that the country aims to erations across the value chain. There is a reliable partner, with a government, in- maintain, Singapore is now looking to also a strong focus on developing space dustry and educational backing that work grow the manufacturing sector and to technologies. Satellite and telecommu- in unison towards the common goal of broaden the value chain offering in the nications innovations generated through strengthening the country’s position as an country. Major investments by key players the use of HTS and IDRS implementation aerospace hub. ▬ Image: Bell Helicopters Image:

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations TABLE OF CAPABILITIES Global Business Reports

Actuation Aerospace Comm. Components Design, Industrial and Landing Services Systems and and Interiors and Engineering Gear Equipment Standard Exteriors Companies Parts

A*STAR P P P P Accuron Technologies P ACSOA P P Addvalue Technologies P Air Transport Training College Asia Technical Services P Association of Aerospace Industries (Singapore) ATR Aviation Labour Group P Aviation Safety and Training Bell Helicopter Bombardier P P CAPA - Centre for Aviation Composite Technology International P Cyient P P Embraer 64 Esterline Sensors Services P Excel Aerospace P P P Fokker Services Asia P Images In Motion P JEP Precision Engineering P JTC P Lufthansa Systems Asia Pacific Lufthansa Systems GmbH & Co.KG P Mitsubishi Electric Asia P P P P Rolls-Royce Sabena Technics Asia P P P P P P Singapore Aerospace Manufacturing P Singapore Economic Development Board Singapore Institute of Aerospace Engineers P Singapore Space and Technology Association P Singapore Technologies Aerospace (ST Aerospace) P P P P P Spacetime Technology P P Starburst Accelerator P Thales Singapore P P P P The Boeing Company Wah Son Engineering P Zero G Design P

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports TABLE OF CAPABILITIES

Machinery Manufacturing Mapping MRO Navigation Sub- Systems and Testing and Training Treatment and and Remote Systems and assemblies Software Maintenance and Equipment Sensing Equipment and Processing Structures

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P P 65 P P P P P P

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ACP Metal Finishing Association of Aerospace Industries (Singapore) 6 Circle 690 West Camp Road, #08-08 JTC Aviation Two, Seletar Singapore 629037 Aerospace Park, +65 6863 8318 Singapore 797523 www.acpanode.com.sg +65 69221788 www.acpaerospace.com.sg www.aais.org.sg

Accuron-SAM ATC Coating 51 Corporation Road, Block 205, Woodlands Avenue 9 #04-54, Woodlands Spectrum II Singapore 649806 Singapore 738957 +65 6867 8809 +65 6362 1200 www.accuron.com www.atc-treatment.com

Addvalue ATR (Avions de Transport Regional) 8 Tai Seng Link, Level 5 (Wing2) 51 Changi Business Park Central 2, #08-02 The Signature, Singapore 534158 Singapore, 486066 +65 6509 5700 +65 6548 3386 www.addvaluetech.com www.atr-aircraft.com

Aerospec Supplies Aviall 81 Ubi Avenue 4 2 Loyang Lane #05-01/02, #09-25 UB.One Singapore 508913 66 Singapore 408830 +65 6542 5420 +65 6382 2272 www.aviall.com www.aerospec.com.sg

Aviation Labour Group Agency for Science, Technology and Research (A*STAR) 1 Central 5, #03-08 CPF Tampines Building, I Fusionopolis Way, #16-16 Connexis, Singapore 529508 Singapore 138632 +65 6782 0380 +65 6826 6111 www.aviationlabour.com www.a-star.edu.sg, www.astaraerospace.sg

Bell Helicopter Asia Air Transport Training College 6 Seletar Aerospace Heights, 70 Seletar Aerospace View, Seletar Aerospace Training Complex, Singapore 797545 Singapore 797564 +65 6542 2422 +65 66036600 www.bellhelicopter.com www.attc.edu.sg

BOC Aviation Asia Technical Services 8 10 Anson Road, #10-001 International Plaza, #18-01 Singapore 07903 Singapore 068811 +65 9615-0148 +65 6323 5559 www.asiatechserv.net www.bocaviation.com

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Boeing Composite Technology International #01-01, 30 Changi North Rise, 39 Luoyang Way, Singapore 498780 Singapore 508735 +65 6309 1500 +65 6542 1121 www.boeing.com www.cti.com.sg

Bolloré Logistics (Singapore) Conco Aereo Maintenance / ACSOA 101, Alps Avenue #03-01 41 Loyang Drive, Singapore 498793 Singapore 508952 +65 6416 8333 +65 6542 2336 www.bollore-logistics.com www.ACSOA.com, www.concoaereo.com

Bombardier CYIENT 10 Seletar Aerospace Heights, 61 Seletar Aerospace View, Seletar Aerospace Park, Singapore 797560 Singapore 797546 +65 66902610 +65 6718 6600 www.cyient.com www.bombardier.com Dedienne Aerospace 1 Seletar Aerospace Lane, CAE International Holdings Singapore Branch Singapore, 797435 2 Seletar Aerospace Link +6583600888 Singapore 797570 www.dedienne-aero.com +65 6430 4390 67 www.cae.com/worldwide- presence/cae-singapore-training- centre/ DHL Supply Chain Singapore No. 10 Changi South Street 2, Level 2, ABX Building Singapore 486596 CAPA — Centre for Aviation +65 6372 8200 1 North Bridge Road, #19-09, www.dhl.com.sg Singapore, 179094 +65 6674 3118 www.centreforaviation.com DMG MORI Singapore 3 Tuas Link 1 Singapore 638584 +65 6660 6688 Changi Airports International www.dmgmori.com 60 Airport Boulevard #048-049 Changi Airport Terminal 2 Singapore 819643 +65 6541 1922 , +65 6545 5369 Embraer www.cai.sg 391B #24-02, Ngee Ann City, Tower B, Singapore 238874 Civil Aviation Authority of Singapore +65 6734 4321 Singapore Changi Airport www.embraer.com 60 Airport Boulevard, 4th Storey, Terminal 2 Singapore 819643 +65 6542 1122 Esterline www.changiairport.com.sg, www.caas.gov.sg Easterline Sensors Services Asia, 30, Loyang Way, #06-06, Singapore 508769 +65 6546 4428 www.easterline.com

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Excel Aerospace Hypercoat Enterprises Block 5008 Ave 5, #06-04/05/06, Techplace II, 1 Loyang Way 6 Singapore, 569874 Singapore 507076 +65 6481 6491 +65 6542 8989 www.excelaerospace.com www.hypercoat.com.sg

Federal Express (S) Images in Motion 90 Alps Avenue 26A Everton Road, Singapore 498746 Singapore 089381 1800 743 2626 +65 63231990 www.fedex.com.sg www.iim.com.sg

Fokker International Engine Component Overhaul 1800 West Camp Road, Seletar Aerospace Park, 3 Loyang Way 2 Singapore 797521 Singapore 507102 +65 6481 1080 +65 6318 2555 www.fokker.com www.ieco.com.sg

FTS Flightech Systems JET Aviation #05-10, CT Hub, 1071 West Camp Road, Seletar Airport, Singapore 339407 Singapore 797799 www.fts-aereo.com +65 6481 5311 68 www.jetaviation.com

GE Aviation, Engine Services - Singapore 23 Loyang Way Singapore 508726 JEP Precision Engineering +65 6545 6071 +65 6545 4222, www.jepprecision.com.sg www.ge.com

Kimberly-Clark Singapore Haite Aviation Training 83 Clemenceau Avenue #14-05 UE Square 15 Changi Business Park Crescent, Singapore 239920 #01-01 HAITE Building, +65 6226 2882 Singapore 486006 www.kcprofessional.com.sg +65 63985668 www.haite.com.sg Kontron 14118 Stowe Drive, POWAY, Hawker Pacific CA, 92064-7147, USA 720 West Camp Road, Seletar Aerospace Park, +1 888 294-4558 Singapore 797520 www.kontron.com +65 6681 7888 www.hawkerpacific.com Kuehne + Nagel Singapore Logistics Hub, 10 Pioneer Crescent, Honeywell Aerospace Singapore Singapore, 628566 2 Joo Koon Circle +65 6339 5115 Singapore 629039 www.kuehne-nagel.com +65 6861 4533 www.shared.honeywell.com

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Lantal Textiles Asia Pacific Meggitt Aerospace Asia Pacific 11 Tampines Concourse #01-05, 1A Seletar Aerospace Link, Seletar Aerospace Park Singapore, 528729 Singapore 797552 +65 6635 57 60 +65 6511 7200 www.lantal.com www.meggitt.com

Liebherr-Singapore Ministry of Trade And Industry 8 Pandan Avenue 100 High Street, #09-01 The Treasury Singapore 609384 Singapore 179434 +65 6265 2305 +65 6225 9911 www.liebherr.com www.mti.gov.sg

Lockheed Martin Global, Inc. Mitsubishi Electric 501 Orchard Road, #21-02 Wheelock Place 307 Alexandra Road, Mitsubishi Electric Building, Singapore 238880 Singapore 159943 +65 6508 0000 +65 64732308 www.lockheedmartin.com www.MitsubishiElectric.com.sg,

Lufthansa Systems Nanyang Polytechnic 390 Orchard Road, #07-03/04, 180 Ang Mo Kio Avenue 8 Singapore 238871 Singapore 569830 +65 6514 1330 +65 6451 5115, +65 6455 0500 www.lhsystems.com/location/asia-pacific www.nyp.edu.sg/SEG 69

Lufthansa Technik AG Nanyang Technological University - 390 Orchard Road Satellite Research Centre #05-04 Palais Renaissance 50 Nanyang Drive, Research Techno Plaza, Border X Block, Singapore 238871 Level 7, RTP/BX07 +65 6733 9081 +65 6790 6289 www.lufthansa-technik.com www.ntu.edu.sg

Mag Engine Systems Ngee Ann Polytechnic - School of Engineering - #05-09 JTC Aviation One, 700 West Camp Road Seletar Mechanical Engineering Division Aerospace Park Block 37 #06-00, 535 Clementi Road Singapore 797649 Singapore 599489 +65 6684 3302 +65 6460 6425 www.mag-es.aero www.np.edu.sg/soe

MAJ Aviation NORDAM Singapore 80 Seletar Aerospace View #01-01 29 Changi North Crescent Singapore 797563 Singapore 499619 +65 6483 7470 +65 6496 7100 www.majaviation.com.sg www.NORDAM.com

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Optical Gaging (S) SIM University 21 Tannery Road 461 Clementi Road Singapore 347733 Singapore 599461 +65 6741 8880 +65 6248 9777 www.smartscope.com.sg unisim.edu.sg/sst

Panasonic Avionics Corporation Singapore Aero Engine Services (SAESL) 9 Loyang Lane 11 Calshot Road Singapore 508927 Singapore 509932 +65 6586 8200 +65 6415 7502 www.panasonic.aero www.saesl.com.sg

PPG Industries (Singapore) Singapore Economic Development Board (EDB) 63 Tuas Avenue 1 250 North Bridge Rd, Singapore 639507 Singapore 179101 +65 6861 1119 +65 6832-6832 www.ppgaerospace.com www.edb.gov.sg

Pratt & Whitney Singapore Headquarters – Regional Office Singapore Institute of Aerospace Engineers 61 Seletar Aerospace View 70 Seletar Aerospace View, Singapore 797560 Singapore 797564 www.pw.utc.com +65 6659 8266 70 www.siae.org.sg

Rockwell Collins Southeast Asia (Singapore Service Center) 18 Loyang Lane Singapore Polytechnic School of Engineering Loyang Industrial Estate Singapore 508918 500 Dover Road +65 6542 2078 Singapore 139651 www.rockwellcollins.com +65 6772 1815 www.sp.edu.sg/SPweb/appmanager/eee/home

Rolls - Royce 1 Seletar Aerospace Crescent, Singapore Space and Technology Association Singapore 797565 318 Road, +65 6240 3333 Singapore, 247979 www.rolls-royce.com/country-sites/singapore.aspx +656735 7995 www.space.org.sg

Sabena Technics 11 Seletar Aerospace Lane, Singapore Test Services Singapore, 797440 249 Jalan +65 62061400 Singapore 619523 www.sabenatechnics.com +65 6660 7271, +65 6660 7322 www.test.com.sg

Safran Electronics Asia 26 Changi North Rise Spacetime Technology Singapore 498756 3 Fusionopolis Way #13-21 Symbiosis +65 6545 2885 Singapore 138633 www.safran-electronics-defense.com/company/safran- +65 6635 8633 electronics-defense-services-asia-pte-ltd www.spacetime-tech.com

Industry Explorations SINGAPORE AEROSPACE 2017 Global Business Reports Global Business Reports DIRECTORY

Spirit Aerosystems Inc. Vector Aerospace P.O. Box 780008, Wichita, KS 67278-0008 100 Seletar Aerospace View +1 (316) 526-9000 Singapore 797507 www.spiritaero.com +65 6715 2100 www.vectoraerospace.com

SPRING 1 Fusionopolis Walk, #01-02 South Tower, Solaris, Wah Son Engineering Singapore 138628 1 Seletar Aerospace Heights, +65 62786666 Singapore 797547 www.spring.gov.sg +65 6734 3167 www.whason.com.sg

SR Technics 5 Tampines Central 1 Tampines Plaza #02-04 Wesco Aircraft Singapore Singapore 529541 750E Road +65 3157 8871 #05-02A, Technopark @ Chai Chee www.srtechnics.com Singapore 469005 +65 6543 2814 www.wescoair.com ST Aerospace 540 Airport Road, , Singapore 539938 Windsor Airmotive Asia +65 6287 1111 21 Loyang Lane www.staero.aero Singapore 508921 +65 6542 4885 71 www.windsorasia.com.sg Temasek Polytechnic 21 Tampines Avenue 1 Singapore 529757 Wings Over Asia +65 6780 5144 66 Seletar Aerospace View, www-eng.tp.edu.sg WOA Aviation Hangar - 66 #03-01 Singapore 797509 +65 6659 6225 Thales Solutions Asia www.wingsoverasia.com 21 Changi North Rise Singapore 498788 +65 6424 7100 Zero G Design www.thalesgroup.com +65 8111 0591 www.zerogdesign.com

United Aviation (Singapore) 132 Services Asia Singapore 629597 36 Loyang Drive +65 6863 6067 Singapore 580949 www.uaviation.com +65 6579 2230 www.zodiacaerospace.com

UTC Aerospace Systems - Goodrich Aerospace (Customer Services Asia Pacific) 39 Changi North Crescent Singapore 499642 +65 6545 9975 www.utcaerospacesystems.com

Global Business Reports SINGAPORE AEROSPACE 2017 Industry Explorations