Malaysia's aerospace industry set to soar with 7% growth

  • Business
  • Wednesday, 22 Mar 2017

LANGKAWI: The aerospace industry in the country is expected to grow by 7% this year with the aerospace manufacturing sector contributing 55% to industry revenue, according to International Trade and Industry (Miti) Minister Datuk Seri Mustapa Mohamed.

“The Malaysian Investment Development Authority (Mida) has 10 aerospace projects in the pipeline with an investment value of RM1bil. We are negotiating to secure these 10 aerospace projects now,” Mustapa said at the Miti booth during Lima 2017 here yesterday.

In 2016, nine aerospace projects were approved with investments of RM1.6bil. Domestic investments amounted to RM673.9mil (43.1%).

“The majority of these investments (RM889.4mil or 56.9%) were from foreign investors. “The approved projects are expected to generate a total of 1,766 employment opportunities,” he said.

Mustapa said the aerospace industry managed to maintain growth in 2016, recording revenue of RM12.7bil even though the world faced an uncertain economic climate.

He added that the maintenance, repair, and overhaul (MRO) industry would continue to expand especially in the engine and engine components. That segment is targeting revenue of RM6bil.

“The industry growth will create 1,500 new high-skilled jobs,” he said.

Mustapa said the Government viewed the aerospace industry as a critical sector which offers abundant opportunities for the transfer of advanced technologies in engineering, electronics, composite materials, system integration, MRO, and industry-led research and technology.

“Malaysia’s aerospace exports are mainly aerospace parts and components, which recorded revenue of RM5.53bil in 2016.

“The importation of aircraft, raw materials, and spares recorded RM11.94bil, contributed by the fleet expansion and replacement of the aviation sector that will be directly benefitting Malaysia through the increase of aviation and tourism activities.

“There are currently more than 200 aerospace companies in the country, engaging 21,000 workers,” he said.

Mustapa said 12 key initiatives had been implemented last year in accordance with the objective to transform Malaysia as a regional aerospace hub by 2030, which was in line with the Malaysian Aerospace Blueprint’s objectives penned in 2015.

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