COMPETITION ACT 2004 9CAP 46 / 2004)The much-anticipated Jewel Changi Airport opened its doors to...

@SINGAPORE

COUNTRY REPORT

46th Executive Council Meeting

Federation of Asia Pacific Air-cargo Associations

(FAPAA)

Dhaka, Bangladesh 26th- 27th July 2019

SAAA@Singapore Confidential Pg 2 of 13

Table of Contents

S/N Content Page

1. Industry Overview of Singapore 3-4

2. Profile of SAAA@Singapore 5-6

3. Local Regulatory and Industry Developments 7-8

4. SAAA@Singapore Events 9-13


Industry Overview of Singapore

Background of Singapore:

Singapore has built on its advantageous geographical location to become one of the world’s top transportation hubs for sea and air cargo. Singapore’s container ports are the busiest in the world. They offer a choice of 200 shipping lines with links to some 600 ports in 123 countries.

Changi International Airport is linked to some 280 cities in 60 countries, with about 6,900 weekly flights, providing convenience and effective connectivity for passengers and cargo. The Changi Airfreight Centre is a 24-hour, one-stop hub for the storing, moving and repackaging of goods without the need for documentation and custom duties. This has drawn some 6,000 logistics providers to Singapore, including 20 of the world's top 25 third-party logistics providers.

i) Singapore Statistics in Brief

Item Description 2017 2018

Gross Domestic Product S$447b S$491.2b

Share of Gross Domestic Product (%)

Transportation & Storage 7.2% 6.9%

Air Cargo Handled (‘000 Tonnes) 2.13 2.15

Sea Cargo Handled (‘000 Tonnes) 627,688.1 630,125.3

ii) Past Trends of Cargo Handled by the various modes of transport


iii) Industry Challenges On the cargo movements, industry conditions were fraught with challenges, as growth in major economies around the world continued to be weak. Five broad Challenges experienced:

1) Continued restructuring of local economy 2) Stagnating air 3) Cargo demand 4) Strong regional competition 5) Overcapacity squeezing profit margin 6) Manpower constraints


Profile of SAAA@Singapore

i) Vision, Mission, Values

Vision: To lead and transform the Airfreight Industry Mission Statement : SAAA@Singapore was founded in 1971 with six pioneer members. As a representative of freight forwarders in the industry, SAAA@Singapore was formed with the aim of advocating the following objectives:

To promote, protect and develop the business of carriage of goods by air transportation in general and the aircargo forwarding business in particular.

To advance and promote education and technical training in the aircargo forwarding industry and for such purposes to support training schemes.

To act as arbitrators and to assist in the settlement of disputes between members.

To act as negotiating body for the member of the Association or with the approval of the Association, for any person, body or company for the transaction of any business connected with aircargo and to make recommendations to Government Departments or Agencies, IATA or other bodies in relation to any measure which may be taken involving members and/or the aircargo industry in Singapore.

To set and regulate high standards and practices to be maintained by members. Core Values: PACT : Passion for continuous self-improvement, Ace in Innovation and delivering consistent excellence, Commitment to pull great service and strive for change, Trust in our Partners and engaging in future collaborations.


ii) Members Profile As of 09 July 2019, SAAA@Singapore has a total of 148 Members of which, 112 are Ordinary Members and 36 are Associate Members.

i) Executive Board Profile

No. Name Position Organization / Company Name Role at SAAA

1 Mr Steven Lee Freight Mgmt Advisor

Ceva Logistics Singapore Pte Ltd Chairman

2 Mr Paul Teo VP, South Asia Centre

Speedmark Air Transportation Pte Ltd

Deputy Chairman

3 Mr Richard Chua

VP, Regional HQ

Yamato Asia Pte Ltd Honorary Secretary

4 Mr Jimmy Ler Country Director

Logwin Air + Ocean Singapore Pte Ltd

Honorary Deputy Secretary

5 Mr Benjamin Ong

President Alliance 21 Pte Ltd Honorary Treasurer

6 Mr Michael Yew Honorary Executive

SAAA@Singapore Honorary Executive

7 Mr Alec Koh Managing Director

Freightmen Pte Ltd Honorary Member

8 Mr Patrick Tan Managing Director

Senator International (S) Pte Ltd Council Member

9 Mr Joseph Khoo

Managing Director

Quickflo Logistics Pte Ltd Council Member

10 Mr Ramadas Naidu

Chief Operating Officer

S-net Freight Singapore Pte Ltd Council Member

11 Mr Daniel Chng Director Airtropolis Express (S) Pte Ltd Council Member

12 Mr Benjamin Netto

Consultant (Operations)

Pacific Integrated Logistics Pte Ltd

Council Member

13 Mr Richard Tan Director Merstar International (S) Pte Ltd Council Member

14 Mr Marc Ong Director Aspac Aircargo Services Pte Ltd Council Member

15 Mr Ken Chua Sales & Marketing Manager

UT-Ways Freight Services Pte Ltd

Council Member

16 Mr Gabriel Lam CEO Shalom Aviation Pte Ltd Council Member

17 Mr Gary Ong Director Cargotec Pte Ltd Council Member


Local Regulatory and Industry Developments

i) Establishment of Aviation Studies Institute

- Advancement in Air Traffic Management research and development The Civil Aviation Authority of Singapore (CAAS) and the Singapore University of Technology and Design (SUTD) have signed a Memorandum of Agreement to establish an Aviation Studies Institute (ASI) to advance air traffic management (ATM) research and development (R&D) in Singapore. The agreement was signed by Mr Kevin Shum, Director-General, CAAS and Professor Chong Tow Chong, President, SUTD, on the sidelines of the World Civil Aviation Chief Executives Forum, held at the Singapore Aviation Academy on 9 April 2019. The ASI, to be located within SUTD’s campus, will be the fourth facility dedicated to ATM R&D established in Singapore and the first to focus on operational, economic and policy research.

ii) Unmanned Aircraft Systems Advisory Panel - To review Singapore’s Unmanned Aircraft Systems (UAS) regulatory

framework and recommend enhancements to the framework

The Civil Aviation Authority of Singapore (CAAS) has set up an Unmanned Aircraft Systems Advisory Panel (UASAP). The Panel will help CAAS review Singapore’s Unmanned Aircraft Systems (UAS) regulatory framework and recommend enhancements to the framework. It will also work with UAS users to promote a safe and responsible culture for the use of UAS. As part of its engagement, the Panel will reach out to seek views and feedback from users, residents and other stakeholder groups before making its recommendations. The UASAP will be chaired by Mr. Timothy De Souza, a veteran RSAF pilot and member of the Presidential Council for Minority Rights. He will be joined by 11 members representing key stakeholder groups, including UAS industry and interest groups, UAS training organisations, academia, government agencies, and grassroots organisations. The Panel is expected to provide its recommendations by early 2020.

iii) Launch of Connected Logistics Innovation Platform - For acceleration of Industry Digitalization

With the support of the Economic Development Board (EDB), international service provider DHL Express launched the Connected Logistics Innovation Platform (CLIP) in June. CLIP aims to enhance the quality of DHL’s services with a suite of pilot projects to accelerate digitalization. Equally, CLIP will create an innovation network leveraging Singapore providers, academia and local talent to align with and reinforce Singapore’s ‘Smart Nation’ initiative. The platform will focus on areas such as secure digital services for customers, smart facilities with digital interaction with people and assets, and advanced analytics. Technologies that could be harnessed include the Internet of Things, machine learning, artificial intelligence, blockchain and automation.


iv) Launch of SeafoodXchange - Singapore’s First B2B eMarketplace for Seafood Traders

On 10 June 2019, vCargo Cloud Pte Ltd (VCC) launched the SeafoodXchange, Singapore’s first B2B emarketplace for seafood traders, at the Esplanade. The SeafoodXchange launch event gathered over 250 guests from the seafood industry, financial Institutions, associations, service providers and government agencies. The event was graced by Guest of Honour Senior Minister of State for Trade and Industry, Dr Koh Poh Koon. SeafoodXchange is one of the initiatives that have been realized since the launch of the Wholesale Trade Industry Digital Plan (IDP) in November last year. The IDP is a part of the Industry Transformation Map (ITM) for the Wholesale Trade sector, which sets out strategies to strengthen enterprise capabilities and grow a vibrant ecosystem of wholesale traders in Singapore. SeafoodXchange serves as a platform of which companies can enjoy a streamlined and digitalized process for seafood trading. They can also pool resources to complement their product offerings, and access overseas markets and new growth opportunities through online trading.

v) Jewel Changi Airport - a nature-themed entertainment and retail complex on the landside of Changi

Airport

The much-anticipated Jewel Changi Airport opened its doors to the world on 17 April 2019. With its distinctive dome-shaped facade made of glass and steel, Jewel is sited next to Terminal 1 (T1) and linked to T2 and T3 via air-conditioned linkways fitted with travellators. The highlights included a five-storey garden with 2,500 trees and 100,000 shrubs, with two walking trails. There is also a 40m-high Rain Vortex - the world's tallest indoor waterfall, as well as the 14,000 sq m Canopy Park - the size of 11 Olympic-size swimming pools - located on the top floor of Jewel Changi Airport. The park features a 50m-long suspended bridge with a glass flooring that will allow visitors to look down at the greenery below; a 250m-long bouncing net, which at its highest point, will be suspended 8m or three storeys above ground; and play attractions including mazes and slides. Travellers are able to access an early check-in lounge serving passengers of 26 airlines, including Singapore Airlines, SilkAir and Scoot. This is among the aviation facilities that include integrated ticketing and baggage services for fly-cruise and fly-coach transfers, all of which will improve the travel experience of travellers. In terms of other developments, the upgrading works on T2 will also start soon. It will be expanded and refreshed, with automated check-in kiosks, biometric-enabled bag drops and automated immigration gates, to offer passengers greater convenience from check-in to immigration to their flight.


SAAA@Singapore Events

A) 2018 Past Events

i) SAAA Compliance & Enforcement 2018 SAAA Compliance & Enforcement 2018 had concluded successfully on 7 August 2018 with the attendance of 70 participants from government agencies, shippers, education institutions and freight forwarders. The theme of the event was ‘Equipment, Fauna, Flora, Essentials’ and ‘Trade and Cybersecurity’. In his welcome address, SAAA@Singapore Chairman Mr Steven Lee highlighted on his belief that as a whole community, everyone can strive towards business excellence while ensuring compliance to regulations and to enforce on knowledge aspect to prevent potential disasters or issues from arising. The event put the spotlight on eight key topics: Developments on U.S. Export Controls, Expectations of an End Use Check, Prohibited Telecommunication Equipment, Transporting Dangerous Goods by Air, Convention on International Trade in Endangered Species, Plant Health, Aviation Security Developments in Air Cargo and Cyber Security and the Aviation Industry. Mr. Scott L. Anderson, Export Control Officer, Bureau of Industry and Security, United States Embassy Singapore, shared on the Developments on U.S. Export Controls which included the introduction of the various export control agencies, licensing processing time, sanctions and military controls. He also mentioned on the various types of end-use verifications and best practices, its importance and consequences. Mr Yeo Yong Siah, Manager, Licensing, Telecommunications (Dealers and Equipment Registration), Info-communications Media Development Authority, presented on the import and selling of telecommunication equipment in Singapore, as well as the types of telecommunication dealer’s licenses. He emphasized on the importance that importers, retailers, manufacturers intending to manufacture, import, let for hire, sell, or offer or possess for sale any telecommunication equipment must either apply or register for Telecommunication Dealer’s Licence with IMDA. Mr Ryan Fang, Senior Aviation Safety Inspector (Dangerous Goods), Airworthiness/Flight Operations Division, gave a presentation on regulations involved for handling of Dangerous Goods. He cited on relevant real life case studies to emphasize the importance of complying with regulatory requirements and minimizing the safety risks. Mr Gavan Leong, Executive Manager, Quarantine & Inspection Group, Agri-Food & Veterinary Authority of Singapore (AVA), shared on the Endangered Species (Import & Export) Act, CITES permit requirements for CITES species and non-CITES wildlife species. CITES permits must be obtained prior to arrival and departure of CITES shipments. Ms Noemi Gesmundo, Executive Manager, Quarantine & Inspection Group, AVA, presented on the Import requirements of Plants & Plant Products. Some of the documents required together with the Import permit from AVA (Cargo Clearance Permit) are the Phytosanitary certificate from the exporting country, Packing List, Airway Bill and CITES permit. Mr Martin Siu, Assistant Director (Security Policy), International Relations, Ministry of Transport, shared that Singapore will implement a regulatory framework to strengthen security requirements


for known consignors. He gave examples on the International scrutiny on shipper/consignor level security and concluded that Air cargo security is a collaborative effort. Mr Tony Jarvis, Chief Strategist, Threat Prevention, APAC, Middle East & Africa, Check Point Holding (Singapore) Pte Ltd, spoke on Cyber Security and the Aviation Industry. He highlighted on the various ways of which attackers can target employees out of their office through attacking their personal email accounts, social engineering, file sharing applications, physical access/USB and zero day phishing websites. Overall, SAAA Compliance & Enforcement 2018 has portrayed a clear message that companies need to comply with the various regulatory requirements, enforce on their best practices to prevent potential problems from arising and lastly, to continue striving for excellence.

ii) Temasek Polytechnic Orientation Visit to Changi Airfreight Centre Following from the eventful Memorandum of Understanding Signing Ceremony with Temasek Polytechnic (TP) on 26 February 2018, SAAA@Singapore worked together with Temasek Polytechnic on the Structured Freight Internship Programme. The member companies which participated in the Structured Freight Internship Programme are Panalpina World Transport (S) Pte Ltd, CTI Logistics Pte Ltd, On Time Worldwide Logistics Pte Ltd, Quickflo Logistics Pte Ltd and Clasquin Singapore Pte Ltd. 3 September 2018 marked the first day of the TP students’ internship and SAAA@Singapore organized a half-day orientation of Changi Airfreight Centre, as well as a site visit to CTI Logistics Pte Ltd. The purpose is to educate the students on the various stakeholders residing within Changi Airfreight Centre and to expose them to the various career opportunities within Airfreight Industry.

iii) SAAA@Singapore Futsal Tournament 2018 On 22 July 2018, 32 teams from 22 companies converged at Kovan Sports Centre for the highly-anticipated Futsal Tournament 2018. Tension was high in the air as the teams fought to clinch the title of this year’s overall champion. And, the breakthrough came in the form of DB Schenker’s indestructible team spirit and unyielding attitude, which delivered a stunning performance for the team to come in top as Futsal Tournament 2018 Champion! Congratulations, DB Schenker and to all winners! Players were treated to a sumptuous buffet lunch and the afternoon ended on a good note for the families, friends and participants. A big thank you for your support and let’s look forward to next year’s tournament! SAAA@Singapore Futsal 2018 Results Main Champion – DB Schenker Main 1st Runner up – Primo Xpress FC Main 2nd Runner up – Purple Blood Plate Champion – Shalom A Plate 1st Runner up – Team Aramex Plate 2nd Runner up – Changi Airport


Bowl Champion – Alex Team 2 Bowl 1st Runner up – Hub Team Bowl 2nd Runner up – SATS Team A

iv) Logistics & Cranes Carnival 2018 The Logistics & Cranes Carnival 2018, held on 6 October 2018 at the Trade Association Hub, was organised by the Logistics Alliance, Singapore Cranes Association and Workplace Safety and Health (WSH) Council. The carnival saw close to 1,000 participants, including industry partners, supporting organisations, their families, friends and members of the public, coming down to enjoy the many food and games, as well as informational booths to help aspire students learn more about the current industry practices, as well as give them an insight as to the kind of systems and equipment utilized in the Logistics digitized industry. SAAA@Singapore, as part of the Logistics Alliance, took part in the Logistics & Cranes Carnival 2018, which was graced by Minister of State, Ministry of National Development & Ministry of Manpower, Mr Zaqy Mohamad. SAAA@Singapore had its very first toy forklift game at its booth and the attendees had the opportunity to win Flashpay cards through the game or hourly lucky draws. Hotel vouchers were also provided by the Association as door gifts for the visitors. The Singapore Police Force also held an SGSecure demonstration, to showcase the potential threats to the Logistics and Transport service providers, and how such a situation can be dealt with. This event was attended by Mr Steven Lee, SAAA Chairman, and Mr Benjamin Netto, SAAA Council Member.

v) SAAA Fun Bowling Tournament 2018 The Changi Bowl at Changi Service Club@Changi was the stage for this year’s SAAA Fun Bowling Tournament held on 25 November 2018. 20 teams from 13 organisations competed in the event. The competition was intense and Schenker Singapore (Pte) Ltd – Schenker’s Incredi-bowl emerged victorious to clinch the title of being SAAA Bowling Champion 2018. Ms Pauline Tok, Executive Director, SAAA@Singapore, presented the prizes to the winning teams. SAAA@Singapore would like to take this opportunity to congratulate Schenker Singapore (Pte) Ltd for this achievement as well as to all winners. Congratulations and well done! Let’s have fun again next year!

vi) Cyber Security & Transport Liability Brain Mae Pte Ltd, together with QBE Insurance (Singapore) Pte Ltd, organized the Cyber Security & Transport Liability 2018 at SAAA Training Centre on 16 October 2018.


The event was a sharing platform with SAAA members on the Cyber and Data Security (CDS) solution, as well as Transport Liability. The attendees had the opportunity to listen on various subjects such as the various data breaches, the types of attacks against users, Cybercrimes and Cyber insurance. All in all, the session proved to be a fruitful discussion as members were able to seek advice on the transport liability and gain further insights in relevance to their job tasks.

B) 2019 Events i) SAAA@Singapore AGM & Economic Outlook 2019

15 February 2019 proved to be an eventful day as SAAA@Singapore had a series of exciting events unfolded and shared with the participants at Tanah Merah Country Club, Garden Events Room. It started off with SAAA@Singapore 45th Annual General Meeting (AGM), which addressed on the members’ enquiries and feedbacks such as the reflection of expenditure in financial statements and clarifications of donation amounts. Mr Steven Lee, Chairman, had announced on the Preliminary Notice of Extraordinary General Meeting (EGM) in July 2019 as a call for accounts alignment. With the aim of providing data clarity, the proposed EGM is to align subsequent AGM accounts within the latest financial period. As such, the future AGMs will be held in the period of June or July. Ms Pauline Tok, Executive Director, had also shared on SAAA@Singapore roadmap initiatives for 2019. SAAA@Singapore will be embarking on the very first series of members-exclusive events titled, “I Speak, You Listen. You Listen, We Speak.” It will be a unique platform to give good opportunities for members to present on their respective areas of interest and outreach within the association community. Another great piece of news shared was these events making a comeback: SAAA@Singapore Dinner & Dance, Karaoke and Air Cargo Day. A new feature will be added onto SAAA website – Members Exclusive Login portal. Members can look forward to valuable rewards such as statistics, e-learning, air cargo news and discounted events, as well as promotions at nearby eateries. 45th Annual General Meeting closed on a highlight with positive acknowledgement from members. Ms Pauline Tok, Executive Director, had updated members on the hard-earned changes to the criteria of IATA membership application. After months of perseverance, an official agreement had finally been reached between IATA and SAAA@Singapore. ICAP members have supported the change to the local financial criteria for cargo agents in Singapore. In conclusion, small and medium-sized enterprises (SMEs), which would like to apply for IATA membership, can now follow the local legislation and submit unaudited accounts as per ACRA requirements and to submit accounts, signed by either 1 or 2 signatories. On this, Ms Pauline Tok, Executive Director, attributed the wonderful success to the great efforts of the Council Board. With that positive note, tokens of appreciation were given to SAAA Council Board for the many years of contribution made to the association. This was soon followed by the official signing ceremonies of the two Memorandum of Understanding (MOUs): MOU between SAAA@Singapore and vCargo Cloud Pte. Ltd. and MOU between SAAA Cargo Services Pte Ltd and Worldwide GSA Pte Ltd. SAAA@Singapore will be


collaborating with vCargo Cloud Pte. Ltd. on certain aspects such as the development of freight booking marketplace and cross-border connectivity while SAAA Cargo Services Pte Ltd will be collaborating with Worldwide GSA Pte Ltd to promote Airport College online eLearning courses for the airfreight industry. These initiatives will provide members with access to the latest technologies and innovations within industry, enabling ease of entry into new markets and provide consolidation savings. Lastly, participants listened to Dr Tan Kee Wee on the Economic Outlook 2019. He spoke on the US-China trade war, prospects for the global economy and the dangers faced in 2019. Overall, the event was well attended.

ii) Breakfast Meeting with Mr Dirk Goovaerts, CEO for Asia Pacific, dnata Singapore Pte Ltd

On 22 May 2019, SAAA@Singapore organized a Breakfast Meeting with Mr Dirk Goovaerts, CEO for Asia Pacific, dnata Singapore Pte Ltd, at Changi Village Hotel. The session was well attended by over 50 attendees from the various freight forwarding member companies. Mr Dirk Goovaerts shared details with the audience on the global operations, facilities, cargo operations and future developments of dnata. This was followed by a Q & A session, which Mr Dirk Goovaerts, together with moderator, Mr Steven Lee, SAAA@Singapore Chairman, took the opportunity to engage the attendees to address any matters of concerns. Mr Dirk Goovaerts answered many pointed questions ranging from modification of web tracking to e-initiatives. Overall, the engagement session proved to be an informative and fruitful discussion between dnata and the freight forwarders.

iii) SAAA@Singapore Extraordinary General Meeting 2019

SAAA@Singapore held its Extraordinary General Meeting (EGM) 2019 at Georges@TheCargo on 27 June 2019. The EGM was attended by 23 ordinary member and 3 associate member. The agenda of the EGM included the approval of the Audited Financial Statements for the year ended 31st December 2018, the proposal to adopt the amendments to the Constitution of SAAA@Singapore, the election of the auditors and approval of the remuneration for FY2019 and approval of the extension of the current term of SAAA@Singapore Council Board . All of which have been approved during the EGM. Prepared by: Ms Pammie Loh Vetted by: Ms Pauline Tok Approved by: Mr Steven Lee, Mr Joseph Khoo, Mr Alec Koh and Mr Richard Tan

COMPETITION ACT 2004 9CAP 46 / 2004)The much-anticipated Jewel Changi Airport opened its doors to...

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