AN AIRPORT AS A GROWTH CENTRE : THE LOCATIONAL CHOICE OF FIRMS NEAR SINGAPORE CHANGI AIRPORT

Abstract

This study focuses on Singapore Changi Airport's role in promoting economic growth as well as in influencing firms' locational choice in Singapore. The study is divided into two parts. The first part involves "theorising" the relationships between Changi Airport and economic activities that are found near the Airport. To achieve this, the concept of an airport as a growth centre is developed to aid in an understanding to the nature of economic impacts which the Airport can generate. As a growth centre, Changi Airport is able to disseminate primary, secondary and tertiary economic impacts to a wide geographical area because of its linkages with the other sectors of the national economy. Two types of linkages have been recognised: first, the Airport is viewed as a terminal station that is directly-linked with some firms to provide services necessary for the running of its operations for passengers and air freight. Second, the Airport is seen as an economic system which is able to influence the location decisions of many firms to its immediate vicinity in terms of providing access to foreign purchases and suppliers as well as stimulating others to locate there so as to form a specialised industrial and service area. The second part of the study consists of an empirical survey which focuses on the development of indirect linkages between Changi Airport and some economic activities. The survey addresses two main issues: first, what types of benefits can the firms derive from linkages with the Airport? Second, has proximity to the Airport been a major consideration for firms locating near the Airport or has their choice been influenced by other factors? Methodologically, the survey adopts a behaviouralsitic approach to elicit perceptual information from the decision-makers on whether their locational choice have been influenced by the presence of Changi Airport. To acquire this information, the study has employed a close-ended, structured questionnaire survey as well as interviews with selected companies and a statutory board, Jurong Town Corporation. These companies are chosen from a criteria which assumes that (1) they are involved in the export and import of goods by air and/or (2) they are found in large numbers around the Airport vicinity. Findings of the survey suggest that firms do benefit significantly from indirect Airport linkages. However, it is found that firms which are indirectly-linked to the Airport need not locate close to the Airport. This implies that Changi Airport's "sphere of influence" extends well beyond the immediate Airport vicinity.