Malaysia - October 2018
The aerospace sector remains a strategic industry for Malaysia, with the government planning to develop 30 new small and medium manufacturing companies focusing on the sector by 2020, in addition to the current 20 companies.
Within the aerospace industry, the aerospace manufacturing segment has been growing tremendously since 1990s, and recently surpassed the maintenance, repair and overhaul (MRO) segment as the top revenue contributor in the industry. According to Malaysia's National Aerospace Industry Coordinating Office (NAICO), the aerospace manufacturing segment contributed to 48% or MYR 6.6 billion (USD 1.6 billion) of the industry’s revenue in 2017, followed by 46% from MRO and the remaining 6% from engineering and design services segment. It is hopeful that aerospace manufacturing revenue will increase between 7% and 15% annually, depending on whether the industry will be able to attract more investors into the local scene.
Malaysia’s 2017 aerospace export surged 54% to MYR 8.51 billion (USD 2.05 billion) from 2016, with parts and components making the lion share of the main exports, particularly wings, empennage and aircraft fuselage. Companies in Malaysia contributed to the aerospace value chain covering engineering and design services, system integration, and the manufacture of aircraft parts and components including ground support equipment and MRO activities. The Malaysia Aerospace Blueprint 2030, launched in 2015, has been targeting an annual revenue of USD 14.3 billion by 2030 and the creation of over 32,000 high-income jobs for the industry.
During the bi-annual Kuala Lumpur International Aerospace Business Convention (KLIABC) event, Malaysia Aerospace Industry Association (MAIA) entered into a MoU with Indonesia Aircraft Component Manufacturer Association (INACOM) to collaborate to improve human capital development in both countries to win more jobs from big industry players such as Airbus, Boeing and Rolls Royce in the region. Another local player Sapura Industrial Berhad also entered into an MoU with two Japanese aerospace companies, Wada Aircraft Technology Co Ltd and Aero Inc, to form a joint venture in aerospace component manufacturing in Malaysia. Wada manufactures aerospace components, jigs, fixtures and tooling, whereas Aero assembles and manufactures aerospace parts. Recognized as one of the leading aerospace industry events in South East Asia, KLIABC was organized by MATRADE in collaboration with MAIA and ABE France, involving 150 aerospace industry organizations from 21 countries. First introduced in 2014, a total of 63 Malaysian aerospace companies were participating in the 3-day event.
(Sources: The Star; The New Straits Times; The Edge Markets; Daily Express; MIDA; MATRADE)