Rolls-Royce, the global power systems company, has today published research which shows that by 2015 its activities in Singapore will sustain nearly 25,000 local jobs and contribute more than S$1.5 billion – approximately .5% of GDP – to Singapore’s economy*.
The growth of the Group’s economic impact in Singapore will largely result from significant investment at the Seletar Aerospace Park. In 2009, Singapore was chosen by Rolls-Royce as the location for a new facility to manufacture state of the art Wide Chord Fan Blades, a technology which has played a key role in the success of the Trent engine family. This follows the decision in 2007 to build a new facility in Singapore to assemble and test large civil engines, starting with the Trent 1000 for the Boeing 787. Construction of the Rolls-Royce Seletar campus, which will include the Advanced Technology Centre and a regional training centre, began earlier this year and total investment will exceed S$700m and create 500 new, highly skilled jobs.
“Rolls-Royce has a very strong partnership with Singapore spanning more than 50 years and we are investing significantly to grow our presence here. We undertook this research to better quantify the effect that our local activities have had as an engine for economic growth,” said Jonathan Asherson, Rolls-Royce, Regional Director South East Asia. “This study verifies that we have had a substantially positive impact in many high value areas that are important to Singapore, including the development of skills and cutting edge technology. We look forward to continuing to grow and develop as an important part of Singapore’s national economy over the long term.”
The research findings stem from an economic impact study carried out by independent Singapore-based research company, Blackbox Research, in association with Professor Li Zhi-Feng from Nanyang Technological University.
The research demonstrates that in 2008, Rolls-Royce contributed over S$750 million in value-added output to Singapore, and sustained more than 10,000 jobs throughout the economy with wages and salaries totalling in excess of S$300 million. The company’s operations also resulted in a positive net foreign exchange of more than S$550 million to the economy. The key drivers to these contributions were investments, such as the Rolls-Royce Seletar Campus, and strong business performance from the successful maintenance, repair and overhaul joint ventures with Singapore Airlines Engineering Company, SAESL and IECO. Solid growth in the marine and energy businesses, and preference for local suppliers across its business units were also positive factors.
*The Singapore economy is expected to grow at a CAGR of 3.79% to S$334 billion by 2015 as projected by the Economic Intelligence Unit. The jobs Rolls-Royce will support are through both direct and indirect employment.
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