India and Singapore relations are on a firmer footing with the elevation of ties to a comprehensive strategic partnership. The South East Asian city state, which is a key hub for aviation and shipping, is seeking further cooperation and connectivity with India. This includes a liberalised air service agreement for more flights. Singapore’s minister for transport and second minister for finance Chee Hong Tat, who is in Delhi for an aviation summit tells businessline that better infrastructure and partnership would result in strengthening of our connectivity and economic growth.
What is your assessment of India-Singapore relations?
India and Singapore enjoy a long tradition of friendship based on trust and mutual respect. Over the years, we have seen tremendous progress in our bilateral relationship which has recently been elevated to a comprehensive strategic partnership. This will allow us to deepen existing areas of cooperation and enable new ones, bringing us closer on various fronts.
India is among the top five markets for Singapore’s Changi airport. However, passenger growth from India is slower compared to North East Asia. Is Singapore proposing a revision to air services agreement to allow more flights between the two countries?
Air travel in the Asia Pacific region is expected to see the fastest growth over the next two decades. Demand for air travel between India and Singapore has also been strong and annual passenger traffic between our countries has surpassed pre-COVID levels. It will be mutually beneficial to Singapore and India to explore a liberalisation of the air services agreement. In this way, our carriers can better respond to market demand, and passengers can benefit from more travel options.
The Indian government has cleared Singapore Airlines’ investment in Air India group. Are Singaporean companies considering investment in other areas of aviation too?
India is an integral economic partner for Singapore and aviation is a key growth area. Singaporean companies recognise and are interested in opportunities in the Indian market. For instance, SATS Ltd opened its largest international facility outside of Singapore in Bengaluru in March. The new facility will manufacture ready-to-eat meals complementing existing large-scale food facilities in the region. With airlines in India placing aircraft orders at unprecedented scales, there will be greater potential for investments by Singapore companies, such as in maintenance, repair and overhaul (MRO) units.
With the ongoing Red Sea crisis the Singapore port has seen severe congestion and enhanced wait times for berths. How is your government addressing the situation?
The Port of Singapore has faced increased demand and complexity of container handling this year. From January to July, we handled 23.82 million twenty-foot equivalent units, an increase of 6.1 per cent from the same period last year. The Singapore Ministry of Transport, Maritime and Port Authority of Singapore (MPA) and PSA (our container port operator), are working closely together. We have reactivated some of the berths and yard space that were previously closed at Keppel terminal. One new berth has also been operationalised at Tuas Port this year, with two more starting operations in October and December to expand our port capacity. The average wait time for container berths within our port has been reduced from between two to three days in May to half a day in August. This is comparable to average wait times observed pre-Red Sea Crisis.
Do you expect the Red Sea crisis to end soon?
It is unlikely that the Red Sea crisis will ease any time soon. The situation could also be compounded by an increase in container volumes as companies bring forward export schedules out of Asia, and in preparation for major holidays in the second half of the year. We will continue to work closely with PSA to deal with the situation.
Asian countries including India are developing or firming up plans to develop their own aviation and maritime hubs. These developments will intensify competition and impact Singapore’s growth. Can you share your views?
Singapore is a small and open economy, and has always depended on free and open trade as the basis of our hub status. Increased investments in supply chain infrastructure will add to overall connectivity and this can lead to more trade, investments and growth in the region and beyond. Better infrastructure across the region will also enhance regional supply chain efficiency and resilience. We therefore do not see these investments as a zero-sum game. This is why we have strengthened mutual business linkages between Singapore and India. Indian companies such as Tata group and Tolani have shipping presence in Singapore. Likewise, a number of Singapore companies have a presence in India. Better infrastructure and partnership would result in strengthening of our connectivity and economic growth.
What are areas of collaboration between aviation regulators in Singapore and India?
Singapore works closely with the International Civil Aviation Organization (ICAO) and other member states including India to establish various regional collaborative platforms across the Asia-Pacific region. Last November, the Civil Aviation Authority of Singapore held the inaugural meeting of Asia-Pacific regulators on advanced air mobility and unmanned aircraft systems, where regulators including India’s DGCA discussed regulatory approaches towards new technologies. As air travel continues to grow tremendously in the region and new technologies emerge, it is important for aviation regulators to come together to share views and explore potential partnerships.