Transcript: Singapore market insights
Download alternative video format (MP4, 33.8MB)
>>Christopher Rees: Singapore is a very small place, very little in the way of natural resources, but it is extremely well connected, it has very strong fundamentals in terms of regulatory environments, rule of law. It’s an enormous source of capital that is being deployed throughout the region, including Australia.
If you look at Australia, we have a great deal of land, we have a great deal of resources, we have a great deal of innovative institutions but largely undercapitalised and needing some of that connectivity into Asia.
By 2025 over half the world’s middle class will live within six hours flight of Bangkok. So it’s a way for us to partner with a very, very natural economic partner to both access and also contribute to the growth within Asia, in particular within the ASEAN area.
So Singapore is emerging as a very, very strong aerospace centre. They start off with let’s build the world’s best airport, let’s establish the world’s best airline and then all of the other airlines will come through here. We will develop maintenance, repair and overhaul facilities that require very sophisticated manufacturing skills. We’ll create a talent pool that can sustain that sector and then we move into manufacturing.
And so Rolls Royce now produce the Trent engine in Singapore and we’re seeing more and more manufacturing going on there. So what we see is that those large firms are moving their manufacturing and assembly to Asia, in this case Singapore. They’ll bring their current suppliers of componentry with them and then over a phased period replace all of those suppliers with locally sourced supply from around the Asian region, including Australia.
There’s been an awful lot of publications about ASEAN. What Austrade and DFAT have tried to do is bridge that gap between the high level picture and down to some meaningful action points, some meaningful information based on which Australian companies can make decisions about getting into the market, and that’s a document you can download from the Austrade website right now.