Singapore has announced an ambitious plan to build a second airport logistics park between 2030 and 2039, aimed at further solidifying its position as a logistics hub for Southeast Asia and the world. This announcement was made by Deputy Prime Minister and Minister for Trade and Industry, Mr. Gan Kim Yong, at the “Singapore Supply Chain Conference.”

Mr. Gan highlighted that the upcoming Airport Logistics Park 2 (ALPS2) will work alongside the existing park to significantly boost Changi Airport’s air cargo handling capacity, increasing it from 3 million tons per year to 5.4 million tons. He emphasized that ALPS2 will enhance the vitality of the Changi air cargo hub’s ecosystem, ensuring Singapore maintains and strengthens its core position in the global supply chain.

Like the existing park, ALPS2 will be designed as a free trade zone, enabling third-party logistics companies (3PLs) to respond quickly and efficiently redistribute time-sensitive cargo. Mr. Gan stated that the Singapore government is eager to collaborate with 3PLs to explore how these new developments can better support their expansion plans in the Asian region.

This move is part of a broader series of efforts by Singapore to maintain its position as a global logistics leader. Amid global shifts in production and supply chains, the growing investments in Southeast Asia’s manufacturing sector and trade circulation make the enhancement of Singapore’s logistics hub capacity all the more crucial. Mr. Gan also mentioned that last year, greenfield investments in the ASEAN region grew by over 50%, reaching a record $175 billion, with two-thirds of this investment coming from manufacturing projects. This surge in foreign direct investment has significantly boosted demand for infrastructure and logistics services.

As supply chains shift towards Southeast Asia, more and more companies are choosing to establish regional and global supply chain management hubs in Singapore. The Economic Development Board (EDB) of Singapore reports that the country boasts more than 70,000 supply chain management professionals, with around 3,600 new graduates entering the field annually. Multinational companies like Schneider Electric and 3M have set up supply chain management hubs in Singapore, leveraging this rich talent pool.

Mr. Gan emphasized that Singapore aims to further deepen its collaboration with businesses to strengthen the regional and global supply chain ecosystem. He also revealed that the EDB is working with global shippers to establish supply chain innovation teams or excellence centers in Singapore, with the goal of driving the supply chain toward higher efficiency, resilience, and sustainability.