Singapore remains positive about the long term prospects of the aviation industry and will continue to invest despite the current global financial crisis, a senior official said on Oct. 14.

Speaking at the industry's maintenance, repair and operation (MRO) meeting, S. Iswaran, Senior Minister of State of Trade and Industry said, "In spite of the weak immediate outlook for airlines and the MRO industry, the long term prospects of the aerospace industry remain positive."

He noted, at July's Farnborough Airshow, significant new orders for aircraft continued to be placed with Boeing and Airbus, particularly from the emerging economies of the Middle-East, China and Russia. Demand has also come from airlines seeking to replace their fleets with more fuel efficient aircraft.

He added that the past few weeks had been a turbulent period for financial markets and the effects on the economy will be profound, however, the easing of fuel prices has provided some relief.

In Singapore, Iswaran said, its aerospace industry has a strong growth record, with a 13 percent compounded annual growth rate since 1990.

To support continued growth, Singapore is developing the Seletar Aerospace Park as an integrated aerospace cluster, which will host MRO, manufacturing and business aviation activities.

In addition, the Singapore government has recently decided to form a corporatized body to manage the Changi Airport, one of the best airports in the world, in a bid to further enhance the efficiency and competitiveness of the airport.

"All this is evidence that Singapore remains committed to developing the aerospace industry and reinforcing our status as an air hub," said the minister, adding that, "Singapore will continue to invest in the essential infrastructure and resources to support them."