PM Lawrence Wong at the CAAS 40th Anniversary Dinner

PM Lawrence Wong | 6 September 2024

Speech by Prime Minister and Minister for Finance Lawrence Wong at the CAAS 40th Anniversary Dinner on 6 September 2024.

 
CAAS Chairman and Director-General,
Colleagues from the Singapore aviation family,
Distinguished guests,
Ladies and gentlemen,

I am delighted to join you for the 40th anniversary of CAAS.

Singapore’s Aviation Journey

This milestone in Singapore aviation is also a milestone in our Singapore story.

Because aviation has always been vital to Singapore. As a small island nation with no hinterland and no resources of our own, we have to stay open and connected to the world.

Aviation enables the movement of goods, services, and people.

Aviation is our lifeline to global markets, innovation and opportunity.

Indeed, as Edmund said just now, we have come a very long way from our early days.

Back in 1975, we made the bold decision to build Changi Airport. No one then could predict the immense impact this would have.

Changi has grown to become a cornerstone of our connectivity with the world. Our national carrier, Singapore Airlines, grew in parallel with the airport.

And today, Changi Airport and Singapore Airlines are amongst the best in the business — if not the best in the business.

Our overall aviation ecosystem is also an important part of the economy now. It contributes about 5% of our GDP, sustains good jobs for Singaporeans, and supports other sectors like tourism.

For many Singaporeans, Changi Airport is not just an economic industry, but it will always have a special place in our shared experiences and memories.

Like me, for example. Growing up in the 70s and 80s, and I’m sure for many of us of a similar generation or older, we didn’t have the chance to go for holidays beyond road trips to Malaysia. That was so for my family.

So we did the next best thing – we went to the airport. It was a real treat for the family then. We would go to the viewing gallery to watch the planes take off. And on special occasions, we would celebrate and we would indulge in ice-cream at Swensen’s! The Terminal 1 Swensen’s, the original one.

So you didn’t have to travel to experience and have a good time at Changi.

And this continues today, because the four terminals and Jewel continue to be a wonderful place for families to enjoy quality time together.

Of course, it wasn’t always a smooth flight. There were bumps along the way. We faced challenges like the SilkAir MI185 crash in 1997, the SQ6 crash in 2000, we had 9/11 in 2001, and of course, more recently, the Covid pandemic. But the aviation family pulled through together through these episodes and emerged stronger each time.

I remember the Covid years most vividly of course. I am sure all of you do. It all feels like a bad dream now. But there were moments during those periods when it seemed like everything was going to fall apart.

Air passenger traffic plummeted.

Flights were cancelled, planes were grounded, and our terminals were completely empty.

We were all genuinely worried about the future of Changi and SIA.

But Covid also reinforced the importance of the aviation sector to Singapore.

Because air transportation allowed the swift delivery of vaccines, PPE, and essential goods. And the continued operation of flights allowed Singaporeans abroad to come back home.

And despite the severe disruptions from Covid, Changi never shut down completely. We continued to stay open and facilitated the flow of supplies and essential travel, while maintaining the necessary public health safeguards.

And all this helped to build trust in our aviation sector, and in Singapore.

In the end, we got through Covid together because of your efforts and hard work – you were nimble enough to redesign airport operations; brave enough to put yourselves at risk; and resilient enough to get us through those challenging times. So tonight, I would like to thank each and every one of you for all your contributions. Thank you very much.

Because of you, we are back up again today.

In the first half of this year, Changi’s passenger traffic has returned to almost 100% of pre-pandemic levels.

Our aviation workforce has exceeded pre-Covid levels.

We have welcomed new airlines and added new links to cities.

We are not only on track to full recovery, but we have also bounced back stronger, and we are doing better than before.

The Next Phase

While we celebrate these achievements, we cannot rest on our laurels. Competition is heating up.

The International Air Transport Association projects that post-Covid air passenger volume will double by 2040. And the Asia-Pacific, our region, will be a key engine of this increase.

Countries in our region and beyond are making significant investments to expand and improve their airport infrastructure, to capture more of this traffic. Some have announced plans for mega airports that can handle more than 100 million passengers a year. So they are narrowing the gap with Singapore.

Many airlines are also rapidly expanding their fleets and networks, including to serve more direct routes. Increasingly, flights that would have passed through Changi may no longer be needed.

So we must continue to sharpen our competitive edge and develop new advantages to set us apart.

We are already doing a few things for the next leg of our aviation journey.

The most important thing we are doing is to invest in Terminal 5 (or “T5”).

We will break ground for the construction of T5 in the first half of next year.

And T5 will add capacity for another 50 million passengers each year, on top of Changi’s current capacity of 90 million. So it will support more connectivity, transform the passenger experience, and create more jobs.

Besides additional capacity, the government is also working closely with our international partners to further liberalise our air services agreements, so that airlines can mount more flights, and expand Changi’s network.

We are already well connected, with almost 150 city links today. But we aim to grow this further, to over 200 links in the mid-2030s.

This will bring more passengers to Changi and Singapore, and create demand for the services of our broader aviation ecosystem.

Importantly, we must continue to work together as one aviation team, like what we did during Covid. You may come from different organisations, be it CAAS, CAG, SIA or SATS; you could be from the government, industry, or unions – but we are ultimately all part of the same aviation family. So we must work towards our shared goal of a vibrant and thriving Singapore air hub.

How can we do so? How can we stay ahead of the curve? I will offer three suggestions.

First, we need to step up innovation, and that means harnessing technology well, and continually looking for new ways to create value.

For example, CAAS has worked with the air navigation service providers from several countries to allow their airlines to plan routes freely within a defined airspace, without having to stick to predefined highways in the skies. So this reduces flight time and fuel consumption, and it is good for passengers, airlines, and also the environment!

On the ground, CAG, with the support of CAAS, has been working with the industry to trial the use of autonomous baggage-handling vehicles. This helps to overcome manpower shortages and shorten aircraft turnaround time.

These are all good examples, and I encourage you to keep up the efforts.

I am also glad that CAAS is bringing together different stakeholders in the aviation ecosystem to design innovative concepts for the future.

You have set up an International Centre for Aviation Innovation, for governments and industry to pool resources and expertise, and to catalyse R&D in new areas like unmanned aircraft systems, and smart and automated airport solutions.

Earlier today, CAAS signed an MoU to establish the International Aviation Lab; this is in partnership with the International Centre for Aviation Innovation, SUTD – one of our universities, Airbus, Boeing, CAG, SATS, SIA, and the International Airlines Group. The Lab will work on more efficient ways to handle aircraft, passengers, and baggage.

In fact, this is the first time that an aviation authority, airport operator, airline, aircraft manufacturers are all coming together. It is a good example of how Singapore can convene partners and stakeholders and serve as a pathfinder for the global aviation industry.

So keep up the good work, and let us continue to re-imagine aviation in bold, innovative new ways, so that we can continue to overcome our constraints and push the frontiers of innovation.

Second, we have to grow sustainably.

We all know that climate change is an existential threat for everyone.

Singapore is doing our part to get to net zero. And as a major international hub, we must contribute meaningfully to international climate action.

CAAS has adopted the Sustainable Air Hub Blueprint. This sets out clear and pragmatic strategies to decarbonise the sector, while keeping our air hub competitive.

This is a good start, but the hard work lies in the implementation. We know it is not going to be easy. But we have to give it our best shot.

So you will have to work closely with the aviation family to implement the blueprint, prioritising both growth and sustainability; not one at the expense of the other.

Third, we should continue to contribute actively to international aviation.

Singapore has seen how aviation can bring progress to countries, in addition to serving as a vital mode of transportation. We are a beneficiary of the international aviation framework.

That is why we are firm believers in the mission of the International Civil Aviation Organization or ICAO – to promote safety, efficiency, and sustainability in civil aviation globally. Singapore has served on the ICAO Council since 2003 and the Air Navigation Commission since 2005. We will continue to support and advance ICAO’s goals.

To date, the Singapore Aviation Academy under CAAS has trained more than 160,000 aviation professionals from over 200 countries. The Academy is undergoing a major refresh to boost its training capacity. We are doing this because we want to pay it forward. In our early days, Singapore benefitted from such training from other developed countries. Now, it is our turn to do our part for international aviation.

So I encourage CAAS to continue working with partners to identify and meet the needs of industry and the international community.

Your Singapore Aviation

I’ve shared some ideas on how we can continue to keep the Singapore air hub flourishing and vibrant.

We want everyone in the aviation industry to be involved in these plans for the future of Singapore aviation. If we succeed, the plans will not just benefit you, but all Singaporeans.

Because there will be new facilities at and around T5 for all to enjoy.

There will be more connections – better travel options; more opportunities for businesses; and more jobs for Singaporeans.

So we will be holding a public exhibition on the future of Singapore aviation next year. We welcome all Singaporeans to get involved and participate in shaping our Singapore aviation story.

The aviation story is ultimately a story about all of us – as fellow Singaporeans – working together and doing our part to keep our little red dot shining brightly.

Generations of CAAS officers have done so.

There are pioneering leaders like the late Mr Sim Kee Boon, as well as Mr Liew Mun Leong, who’s here tonight. They both played key roles in making Changi what it is today.

There are many other CAAS staff – past and present – who have made quiet but significant contributions to Singapore aviation.

Before coming in tonight, I had the opportunity to meet some of them.

Like Mr Soon Boon Hai, he joined the precursor to CAAS, the Department of Civil Aviation (DCA), in 1965, when Singapore became independent. He was involved in moving our airport from Paya Lebar to Changi. He was involved in a few crises too. During the hijacking of SQ117 in 1991, he was involved with communicating with the aircraft and hijackers for over an hour. After the SQ6 crash in Taipei in 2000, he assisted with the investigations.

Or there is Ms Mary Tan, who joined in 1971. She was part of the team that shifted airside operations from Paya Lebar to Changi in 1981. And later, she led the commissioning of airside operations for Terminal 2. They worked on this for months to be ready. But Murphy’s Law always strikes, and on the first day of operations, the Baggage Handling System malfunctioned. Despite the chaotic situation, Mary recalls how everyone rolled up their sleeves to sort and carry bags manually to prevent flight delays! And this strong sense of camaraderie motivated her to stay on for 36 years in CAAS, retiring in 2007.

Then there’s Ms Aini Bte Omar, an Air Traffic Control Watch Support Officer. Through her expertise and her many years of experience, she pioneered a process to alert Air Traffic Controllers of complicated flight plans which require close attention. This enhanced the Air Traffic Controllers’ ability to manage flights smoothly, efficiently, and safely. Aini is still in service – 42 years and counting!

I have just highlighted three examples; there are many more to tell. All of you in CAAS and in our aviation family, all of you embody the indomitable Singapore spirit that drives our nation forward.

We are a people who never give up. We take pride in our work. It doesn’t matter what position you hold in the organisation. Because whatever the role, we do our best and we strive for excellence.

Because in the end, we are all fellow Singaporeans. We are equals. We respect one another. We work together as one team – to overcome challenges and to keep on doing better for ourselves and our nation.

That is the spirit that has brought Singapore success; and that is the spirit that will enable us to take Singapore aviation to even greater heights. So keep up the good work everyone, and happy 40th anniversary! Thank you very much.

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