SINGAPORE: The Singapore government will add S$5 billion to Changi Airport’s development fund to ensure the city-state remains a “critical gateway for global travel and trade”, Prime Minister Lawrence Wong said in his Budget 2025 speech on Tuesday (Feb 18).
He noted that Singapore cannot afford to outbid major economies and must allocate sufficient resources to maximise its competitive strengths, Channel News Asia reported.
Pauline Koh, partner at KPMG in Singapore, said, “This is a strategic move that underscores the importance of Singapore remaining a global air transport hub, especially in an increasingly competitive environment.”
The completion of Terminal 5 will increase Changi Airport’s capacity by 50 million passengers a year, raising it from 90 million to 140 million. This follows earlier expansions, including Terminal 3, which opened in 2008 after a S$2.22 billion investment, and Terminal 4, completed in 2017 for S$1.71 billion.
Jewel Changi, a retail and entertainment complex featuring the world’s tallest indoor waterfall, opened in 2019 at a cost of S$2.22 billion.
With the President’s agreement, the government will guarantee Changi Airport Group’s borrowings, helping lower the company’s costs for developing Terminal 5 and related infrastructure in Changi East, Mr Wong said.
With no domestic air travel market, Singapore depends on its major transit hub status to draw airlines and travellers. /TISG