On Feb. 19, the inaugural Singapore Airshow opened at an S$82 million (about US$58 million) new site, after the Asian Aerospace show left for Hong Kong in 2006.

Two years ago, when the organizers of the Asian Aerospace moved out after they could not agree with Singapore's government on funding for the new site, the city-state decided to continue with a world-class airshow under the Singapore brand, with all the elements of trade exhibition, static and flying displays and conferences.

"We have now delivered on our promise," said Singapore Prime Minister Lee Hsien Loong at the official opening of the Singapore Airshow 2008.

More than 800 companies from 42 countries and regions, representing 59 of Forbes' top 100 aerospace companies, will display their wares from Feb. 19 in a 30 hectare space, which includes a 40,000-square-meter indoor display area.

The prime minister announced that Singapore's aviation output hit a high of S$6.9 billion (about US$4.9 billion) in 2007, a growth of more than 10 percent over the previous year.

He added that the growth was due to capitalizing on growing markets which allowed the aviation industry to expand.

"Singapore is well-positioned to ride these growth trends," said Lee.

To sustain the growth of the aerospace industry in Singapore, the government has in recent years invested heavily to develop infrastructure, such as a new 300-hectare Aerospace Park in Seletar, to attract top aerospace companies to base there.

Engineering giant Rolls-Royce announced last year that it would invest about S$320 million (about US$227 million) to build a new facility in the Seletar park to assemble and test the latest engines for the Boeing 787 and the Airbus 350XWB.

The groundbreaking ceremony for the plant will be held during the Singapore Airshow.

Heavy investments have also been made in the maintenance, repair and overhaul (MRO) facilities, which is a multi-billion dollar industry aimed at achieving safe airline operations.

"The Singapore Airshow is a key piece of our vision for the aerospace industry," Lee said.

It is expected that nearly S$500 million (about US$355 million) worth of investments linked to the aerospace industry will be worked out during the six-day event.