Singapore Changi Airport to Be Wholly-Owned Subsidiary of Temasek

Singapore Changi Airport to be wholly-owned subsidiary of Temasek

SINGAPORE, Oct. 7 (Xinhua) — Singapore’s operator of Changi Airport will be split into two entities by July next year — an airport company under state investment firm Temasek Holdings and a regulatory unit that take on strategic and regulatory functions.

The new airport company will be a wholly-owned subsidiary of Temasek Holdings, and take on the operational functions of managing Changi Airport and investments in foreign airports, said Singapore’s Transport Minister Raymond Lim on Tuesday.

“Corporatization will provide Changi greater impetus to capitalize on new opportunities and face rising competition. A corporatized entity will have greater flexibility to attract and retain top talent to compete with global airport operators. It can also better leverage on Changi Airport’s brand name to develop an international presence,” Lim said at a ceremony.

In August last year, the minister announced the Singapore government’s decision to corporatize the management of Changi Airport and restructure the Civil Aviation Authority of Singapore (CAAS).

Liew Mun Leong, chairman of the CAAS and also chief executive of developer giant CapitaLand, has been appointed chairman of the new airport management company.

The new civil aviation authority, which will focus on strategic and regulatory functions, including air services negotiations, allocation and licensing of air services and air traffic services, is to be chaired by Lee Hsien Yang.

Lee, who is also chairman of local conglomerate Fraser and Neavethe, is Singapore Prime Minister Lee Hsien Loong’s younger brother.

Senior Minister of State for Transport and Finance Lim Hwee Hua told reporters that the corporatization process was not a cost- cutting measure, and that CAAS will in fact be hiring more employees as it gears up for the split.

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