Singapore's aviation sector takes off to meet demand, but labour shortage could stall growth
Bellwethers like ST Engineering are looking to do more to meet the demand, such as building additional airframe maintenance hangers in Singapore and abroad.
"We plan to open a new engine shop later this year so that we have more capacity for engine overhaul," said Mr Jeffrey Lam, president of commercial aerospace at ST Engineering.
The facility will provide MRO services for the LEAP-1A and LEAP-1B engines that power narrow-body aircraft, including the new generation Boeing 737 and the Airbus A320. It is expected to provide 200 engine shop visit capacity annually.
The company said these additions will boost its man-hours in Singapore by a third next year – to over 4 million annually.
"We're hiring more people – in Singapore in particular – so that we can grow the amount of services that we can offer to our global customers," Mr Lam said.
The firm wants to add up to 500 staff to its headcount in the next one to two years, with engineer and technician roles certified in avionics and landing gear among the skill demands, added Mr Lam.
STRONG AVIATION SECTOR
Singapore contributes about 10 per cent of current global MRO output, making it a leading hub in Asia.
Industry players believe the nation is well-positioned to leverage the growth.
'For a small country like Singapore, 10 per cent of global market share is very significant,' said Mr Sia, pointing out the aviation sector has recovered well since the COVID-19 pandemic.
Between 2022 and 2024, Singapore bagged over S$750 million in investment commitments from aerospace companies.
Last year, Changi Airport handled almost 68 million passengers, which is 99 per cent of pre-pandemic levels. National carrier Singapore Airlines (SIA) and its low-cost arm Scoot flew 39 million passengers the same year, 12.7 per cent more than in 2023.
'Singapore has historically been able to attract very high-quality aviation and MRO players to base their facilities here,' said Mr Joshua Ng, director of Alton Aviation Consultancy.
'We think that Singapore is one of the few countries that are poised to tap on this growing demand in the MRO sector.'
MANPOWER SHORTAGE
However, industry players said ongoing manpower constraints could ground growth.
'MRO capacity is quite limited, and at the same time, the supply chain is highly constrained and talent is in short supply,' said Mr Sia.
'Fortunately, during the pandemic, we were able to maintain a good proportion of our workforce, which allowed us to ramp up to capture the surge in demand.'
He added that challenges remain in ensuring that enough people can access opportunities in aerospace, as well as in upskilling and cross-skilling the existing workforce.
Currently, efforts to build a talent pipeline include partnerships with educational institutes and career fairs.
ROLE OF AI IN MRO
Market watchers said artificial intelligence could help to address the staffing shortages by helping mechanics and engineers with routine and tedious work.
AI is driving transformation in the sector, allowing jobs to evolve to provide higher value products and services.
'In the past, repairs will only be done when defects are found. (AI will make the process) more proactive and more service oriented… leveraging data to predict whether maintenance (should) happen,' said Mr Ng.
AI makes it possible to predict failures before they occur, by monitoring performance data and identifying patterns of degradation, to avoid situations where planes cannot fly due to faulty parts, he added.
'The role of the human now will be more in terms of sense-making, interpreting the data… doing final quality checks, repairs and sign-offs to make sure that everything is in order for the aircraft to fly,' he explained.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
9 minutes ago
- CNA
Hedge funds pile back into Japan stocks, add shorts on South Korea, Morgan Stanley says
HONG KONG :Global hedge funds ramped up risk appetite and added exposure to Japanese equities ahead of the Nikkei's surge to an all-time high as tariff worries eased, while stepping up short positions in South Korea, a Morgan Stanley note showed. Hedge funds boosted gross exposure to Japan "in relatively large size" last week, with long bets outpacing short positions, according to a Morgan Stanley prime brokerage team note sent to clients on Tuesday, following a July pullback in positions. A fund manager survey by BofA showed that within Asia, Japan continues to be the most favoured market by a significant margin. Japan's benchmark Nikkei rose above 43,000 for the first time on Wednesday, with the broader Topix index also hitting an all-time high. Uncertainty over Japanese exports to the United States has eased after Tokyo reached a framework deal with Washington on tariffs in July, helping to push the market higher. The U.S. government last week promised to amend a presidential executive order to remove overlapping tariffs on Japanese goods, Japan's trade negotiator said. Morgan Stanley said hedge funds built positions across Japan's technology and industrial sectors. Shares of Nintendo soared to a historic high this week on robust sales of the Switch 2, while tech firm SoftBank Group also raced to an all-time high on optimism around artificial intelligence. In other Asian markets, hedge funds were buying Taiwan and Australia but increased bearish positions toward Korea last week, Morgan Stanley said. Hedge funds' net allocations to South Korea at the beginning of August sat just under peak levels of the past decade, as investors significantly increased their long and short bets in the market since the country lifted short sale ban, Morgan Stanley said in a separate note. Korea is the best performing Asian market this year, up more than 30 per cent.
Straits Times
40 minutes ago
- Straits Times
S'pore life insurance sales surged in first half, led by strong growth in investment-linked plans
Sign up now: Get ST's newsletters delivered to your inbox Weighted new business premiums, which is a rough measure of new sales, rose 7.7 per cent to $2.99 billion in the six months to June 30. SINGAPORE – Sales of life insurance policies surged in the first half of 2025 as consumers sought balance between protection and wealth accumulation. Weighted new business premiums, which is a rough measure of new sales, rose 7.7 per cent to $2.99 billion in the six months to June 30 – the highest first-half figure since the Covid-19 pandemic. The increase was driven largely by annual premium policies, which rose 22 per cent to $2.26 billion as compared to the same six months in 2024, noted the Life Insurance Association (LIA) Singapore on Aug 13. By contrast, single premium policies fell 21.3 per cent to $722.9 million in weighted premiums. Investment-linked policies (ILPs) continued to set the pace, with weighted new business premiums rising 31.3 per cent to $1.28 billion in the first half. These policies accounted for 43 per cent of total new business. LIA Singapore president Wong Sze Keed said that the continued growth in annual premium policies and ILPs demonstrates Singaporeans' focus on long-term financial planning and security. 'Amid existing global uncertainties and market volatility, consumers are seeking balance between protection and wealth accumulation,' she added. Top stories Swipe. Select. Stay informed. Business Singapore banks face headwinds in rest of 2025, but DBS is pulling ahead: Analysts Singapore Allianz insures Singapore's first fully driverless bus amid challenges posed by autonomous vehicles Asia Mixed reactions among Malaysia drivers on S'pore move to clamp down on illegal ride-hailing services Business Singtel Q1 profit soars 317.4% to $2.9 billion on exceptional gains of $2.2 billion Asia Diamonds, watches and shoes: Luxury items at heart of probe into South Korea's former first lady Singapore Yishun man admits to making etomidate-laced pods for vaporisers; first Kpod case conviction Sport New Hui Fen becomes first Singaporean bowler to win PWBA Tour Player of the Year Singapore SG60: Many hands behind Singapore's success story 'The sustained demand for ILPs reflects a prudent yet ambitious mindset – one focused on safeguarding against global current unpredictability while capturing growth opportunities in an evolving financial landscape.' Total sum assured in the first half rose 1.8 per cent to $71.4 billion, with financial advisers accounting for 42.6 per cent or $30.4 billion, while tied representatives brought in 29.9 per cent or $21.4 billion. While total sum assured and total weighted premium rose, the total number of policies in the first half declined 18.6 per cent year on year to 579,343. LIA Singapore said this could suggest that consumers may be buying fewer, but more comprehensive policies, opting for coverage that offers greater protection or investment potential. About 69,000 Singaporeans and Permanent Residents took up new Integrated Shield Plans (IPs) in the first half. Nearly three million people – about 72 per cent of the resident population – have IPs, which provide coverage on top of the MediShield Life health coverage scheme. Total new business premiums for individual health insurance increased 69.3 per cent year on year to $373.7 million in the first half. IPs and IP rider premiums made up 89.9 per cent, or $336.1 million, with the remaining 10.1 per cent, or $37.6 million, comprising other medical plans and riders. Around $6.35 billion was paid out to policyholders and beneficiaries in the first half, down 42.1 per cent from the same period a year earlier.
CNA
40 minutes ago
- CNA
Thai central bank cuts key rate by 25 bps, as expected
BANGKOK :Thailand's central bank lowered its key interest rate by a quarter point on Wednesday, its fourth cut in 10 months as it looks to support a sluggish economy grappling with negative inflation and the impact of U.S. tariffs. The Bank of Thailand's monetary policy committee unanimously voted to reduce the one-day repurchase rate by 25 basis points to 1.50 per cent, the lowest in more than two years. The BOT had held the key rate at its June meeting following back-to-back cuts at reviews in February and April. It had also cut rates in October last year. Twenty-three of 28 economists in a Reuters poll had predicted a quarter-point reduction this week. The other five had expected no rate change. Among those who provided a longer-term outlook on rates in the poll, 19 of 26 saw the policy rate at 1.25 per cent by the end of 2025, seven said 1.50 per cent and one forecast 1.00 per cent.
