A More Connected Asia Through Singapore's Aerospace & Logistics Industry
By 2030, Asia expects a growth of 2.5 billion people in its middle class, which signifies an increase in a more educated, socially engaged and internationally connected population. The burgeoning middle class will lead to significant growth in air and land travel and consumer goods movements, which necessitates a more efficient transport and logistics network.
Focal point of exchange
Singapore is well-placed to facilitate these developments as a leading logistics and supply chain hub with robust maritime and aviation capabilities. With over 100 aerospace companies based in Singapore such as ST Aerospace, Goodrich, Rolls Royce, and Pratt & Whitney, Singapore’s aerospace industry accounts for a quarter of Asia’s Maintenance, Repair and Overhaul (MRO) output, supported by the dedicated Seletar Aerospace Park. With Asia’s MRO spend forecast to grow from US$18.3 billion to US$34.8 billion in 2025, Singapore is well-positioned to leverage this growth with its comprehensive range of nose-to-tail MRO capabilities.
Singapore Changi Airport handles about 6,800 flights every week, or about one every 90 seconds, and provides connectivity to 330 cities worldwide. It is also one of Asia’s largest cargo airports and handles close to 2 million tonnes of cargo annually. A fourth terminal, which will increase the airport’s annual passenger capacity by 16 million passenger movements, will open in 2017. This move, together with expansion works at Terminal 1 will bring Changi Airport’s annual total passenger capacity to 85 million.
Maritime transport is essential to the world’s economy as over 90% of the world’s trade is carried by sea. With a strategically positioned global hub port connected to 600 ports in over 120 countries, Singapore is home to about 130 of the world’s top shipping groups and is the ideal Asian gateway for global leaders in shipping finance, shipbroking, risk management and marine insurance.
Leading aviation, aerospace and logistics capabilities
Singapore ranks among the world’s Top 5 performers in the World Bank’s 2016 Logistics Performance Index. Some 21 out of 25 global logistics players, including DHL, FedEx, Kuehne + Nagel, Sankyu, Schenker, Toll Logistics, UPS and Yusen Logistics have also centralised their regional supply chain operations in the city-state.
Further building on existing capabilities, Singapore is well set for higher air traffic volume in the future with thousands of regional personnel well-trained through the Singapore Maritime Institute and Singapore Aviation Academy. The Singapore Aviation Academy – the primary training facility of Civil Aviation Authority of Singapore – is one of the top aviation schools not only in Singapore, but also across the globe. Established in 1958, it conducts more than 100 training programmes for the international aviation community and has trained thousands of personnel in various aviation sectors.
On the infrastructural front, the Asia Pacific region remains by far the largest transport infrastructure market, with investments increasing from US$557 billion per year to nearly US$900 billion per year in 2025. Singapore continues to invest heavily in its world-class infrastructure with specialised logistics capabilities. This includes the Airport Logistics Park in Changi Airport’s free trade zone, Singapore FreePort which provides the largest maximum-security facility for fine art and collectibles, the Banyan LogisPark which caters to the specific demands of chemicals and oil companies, and Coolport@Changi, which is the first airport facility in Asia to handle perishable cargo.