Proportion of Contracts under $4 billion Air Navigation Upgrade Programme Expected to be Awarded to Local Companies

Ms Hazlina Abdul Halim asked the Minister for Transport (a) what proportion of contracts under CAAS's $4 billion air navigation upgrade programme is expected to be awarded to local companies; (b) how small and medium enterprises can participate in the programme; and (c) whether CAAS plans to develop local capabilities to maintain and upgrade critical systems and avoid long-term over-reliance on overseas vendors.

Mr Jeffrey Siow: The Civil Aviation Authority of Singapore (CAAS) will upgrade or replace over 30 air navigation services (ANS) systems over the next 15 years. These include the building of a new Singapore Air Traffic Control Centre complex as well as the upgrading of the Changi Control Tower. Contracts for all systems will be awarded competitively, in accordance with Government procurement principles, and based on considerations, such as technical merit, safety, security, operational resilience and value for money. Local companies, including small and medium enterprises, can participate in these projects as the main contractors, in partnership with main contractors or as specialist sub-contractors.

CAAS is committed to building local ANS engineering capabilities for resilience. For key ANS systems, CAAS will require vendors to partner local strategic suppliers in the maintenance and continuous upgrading of the systems. CAAS will also establish an Engineering Development Centre to facilitate knowledge and technology transfer from original equipment manufacturers to local stakeholders, including for high-impact system customisations required for Singapore's operating context.