PUBLISHED ONFebruary 02, 2026 10:45 AMBYChing Shi JieThe aviation and aerospace sectors will be "twin, reinforcing engines" for Singapore’s growth as global demand for air travel rebounds and supply chains face further complexity, Deputy Prime Minister Gan Kim Yong said on Monday (Feb 2).
Speaking at the opening ceremony of the Singapore Airshow 2026 at the Sands Expo and Convention Centre, he said that the Republic will attract global companies while scaling up local firms as "critical partners", invest in building a talent base and long-term infrastructure, as well as encouraging research and innovation.
"We will keep these twin engines of growth resilient, competitive and future-ready, and contribute meaningfully to the future of global aviation and aerospace," he added.
While demand for air travel, particularly in the Asia Pacific region, is rebounding, DPM Gan, who is also Minister for Trade and Industry, said that supply has become more constrained.
Over the next two decades, Asia Pacific is expected to account for more than 45 per cent of the global aircraft fleet and close to half of all new aircraft deliveries.
Passenger traffic here is projected to grow faster than in any other region, driven by rising incomes, expanding middle classes and deeper regional integration.
This has resulted in aircraft production struggling to keep pace and delivery timelines lengthening — driving demand for maintenance, repair and overhaul capabilities (MRO) as fleets are staying in service longer.
At the same time, supply chains in the aerospace sector face changes as companies make decisions "not just based on cost, but on resilience, reliability and long-term operating certainty".
"Geopolitical shifts, trade dynamics and climate risks are adding further complexity to investment and supply-chain decisions," said DPM Gan. "In this environment, stability, predictability and trust matter more than ever."
Against this backdrop, he said that Singapore can position itself by providing a "stable and predictable operating environment" as well as being able to connect people and markets, as well as anchor high-value production, repair, engineering and innovation activities.
He pointed out that Changi Airport served a record-high 70 million passengers in 2025, and is targeting to have links with 200 cities — up from around 170 currently — by the time Terminal 5 opens in the mid-2030s.
The new terminal will increase Changi Airport's annual passenger capacity by more than 55 per cent, from the current 90 million to 140 million.
Singapore has also since attracted more than $750 million in investments since the last airshow in 2024 and about 600 jobs in aviation are expected to be created over the next five years.
Besides Terminal 5, Singapore’s investments in long-term infrastructure include JTC aeroSpace Four in Seletar Aerospace Park, which will add 11,000sq m of factory space by 2027.
On research and development, as well as innovation, DPM Gan added that aerospace companies are looking to develop new technologies here that can be deployed globally.
"Aviation and aerospace will remain central to Singapore’s growth story as a trusted and connected hub in an uncertain world. Together, they connect Singapore to the world, create good jobs for Singaporeans, and anchor high-value capabilities here at home."
"To sustain this momentum, we are strengthening our business environment and industrial ecosystems so that companies can operate, invest and scale here with confidence over the long term," he added.
While global companies are attracted to build faculties in Singapore, the country’s 3,000 local enterprises can help them "build resilience" while "uplifting themselves into higher-value activities".
"This is the kind of ecosystem we want to scale — one where global companies can anchor deeper capabilities in Singapore, and local enterprises can build sophistication and global relevance," he added.
On talent, DPM Gan said that Singapore produces more than 2,000 graduates every year, and in July 2025 the Government announced a $200 million fund to back initiatives to attract, develop and retain talent in the aviation sector.
Collaboration between schools and the industry will also be strengthened — from company training facilities using artificial intelligence and robotics, to work-study programmes at institutes of higher learning.
The biennial airshow at Changi Exhibition Centre, now in its 10th edition, will run till Feb 8, and is expected to draw around 110,000 trade and public visitors and more than 1,000 companies from 50 countries.
The exhibition is open to public on Feb 7 and 8.
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chingshijie@asiaone.com