KUALA LUMPUR: Malaysia’s aerospace industry is strengthening its position in the regional supply chain as local companies expand into higher-value manufacturing, maintenance and engineering services.
Malaysia is currently home to more than 250 aerospace companies, generating RM32.5bil in industry revenue and employing over 30,000 skilled workers, according to the Malaysian Investment Development Authority (MIDA).
The country has developed capabilities spanning research and development, engineering and design, manufacturing, maintenance, repair and overhaul (MRO), as well as talent development.
Over the past five years, Malaysia approved 30 aerospace investment projects worth RM2.7bil, which are expected to create more than 2,600 high-value jobs across aerospace manufacturing, MRO, engineering and related services.
MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the next phase of the industry’s development would involve building more local champions capable of competing internationally and moving into higher-value segments of the aerospace supply chain.
“This ambition is fully aligned with the Malaysian Aerospace Industry Blueprint 2030, which envisions Malaysia as the leading aerospace nation in Southeast Asia and an integral part of the global aerospace industry,” he said.
Among the Malaysian companies expanding their aerospace presence is Pecca Aviation Services Sdn Bhd, which has moved into aircraft seat covers and soft furnishings after building its manufacturing base in the automotive leather upholstery industry.
The company became the first Malaysian company to obtain European Union Aviation Safety Agency (EASA) Production Organisation Approval Part 21G under C2 certification.
The approval allows Pecca Aviation to manufacture, repair, refurbish and install aircraft seat covers and soft furnishings for EASA-compliant aircraft worldwide.
"Achieving EASA certification placed us alongside established aviation MRO players in Europe and the United States while opening new opportunities to compete internationally.
“More importantly, it demonstrated that a Malaysian company can meet one of the world's highest aviation manufacturing standards," Pecca Aviation executive director Hugo Teoh said.
The company recently signed a memorandum of understanding with Myanmar Airways International at the MyAERO Summit 2026 as part of efforts to expand its regional presence.
It is also collaborating with Politeknik Banting and Universiti Tun Hussein Onn Malaysia to develop aerospace talent.
Meanwhile, Asia Digital Engineering (ADE) has expanded its MRO operations at Kuala Lumpur International Airport Terminal 2 from a single maintenance line into a 16-line facility serving AirAsia and international customers, including Air France.
ADE has also developed digital platforms including AEROTRADE and ELEVADE, which incorporate predictive maintenance, artificial intelligence, aircraft health monitoring and workforce optimisation.
ADE chief executive officer Mahesh Kumar said Malaysia had an opportunity to compete for aerospace business based on quality, innovation and operational capabilities rather than cost alone.
The company has also established a Maintenance Training Organisation to train engineers and technicians in internationally recognised qualifications and digital competencies.
Malaysia is targeting further expansion in the aerospace industry under the Malaysian Aerospace Industry Blueprint 2030 and New Industrial Master Plan 2030.
By 2030, the aerospace sector is projected to generate RM20.4bil in MRO revenue, RM21.2bil from aero-manufacturing and RM13.6bil from engineering and design services.
The country's aerospace ecosystem is also expanding into sustainable aviation fuel (SAF).
PETRONAS delivered Malaysia’s first locally blended, ISCC-certified SAF to Kuala Lumpur International Airport in September 2025, while projects including EcoCeres’ biorefinery in Johor and the planned PETRONAS-Eni-Euglena facility in Pengerang are expected to increase domestic SAF production capacity.
MIDA said the growth of Malaysian aerospace companies would help strengthen domestic supply chains, generate high-value employment and increase the country's participation in the global aerospace value chain.
