Singapore Aerospace and Defense

Singapore is Asia’s leading one-stop solutions provider for aircraft Maintenance, Repair, and Overhaul (MRO) needs, contributing to 10% of global MRO output.  The aerospace and defense market size are estimated at USD 6 billion in 2024 and is expected to reach USD 11.7 billion in the next five years, projecting a compound annual growth rate (CAGR) of 14.15%.

As Singapore continues its efforts to expand the industry over the next 3–5 years, more than USD 750 million has been invested, and more than 10 new projects have been created.  Additionally, the country reflects a robust CAGR as the defense budget is expected to increase from USD 10 billion to USD 12 billion and the acquisition budget from USD 493 million to USD 714 million from 2024 to 2028.

Singapore recently introduced two initiatives to further support sector growth:

•    Aerospace Industry Transformation Map 2025 (ITM): Encourages collaborations in areas such as sustainable aviation and Advanced Air Mobility (AMM), supports aviation industry recovery, and drives future opportunities.

•    Partnerships for Capability Transformation (PACT): Recently enhanced to expand collaborations between larger multinational corporations and local enterprises, deepen their capabilities, and expand their operations to capture new market opportunities.

U.S. industry leaders such as Pratt & Whitney, GE Aerospace, and Barnes Aerospace have expanded their business operations by transforming facilities into a ‘smart factory’ to comply with Singapore’s Green Plan 2030.  To optimize new technologies, the government seeks education and training from foreign experts to enhance the labor force.

The Singapore Government actively invites more new technology collaborations with industry leaders to meet the growing demand for advanced manufacturing and clean fuel energy in aerospace and defense.  During the Singapore Airshow 2024, more than 150 U.S. companies exhibited at the show and U.S. Commercial Service ASEAN offices recruited close to 300 delegates.

To tap these opportunities and for more information, please contact the U.S. Commercial Service in Singapore: Mr. CHAN Y K, Commercial Specialist.