SUBANG JAYA: Malaysia will introduce a regulatory framework for the low-altitude economy by the end of this year while pursuing bigger ambitions to become a regional aerospace powerhouse, says Anthony Loke.
The Transport Minister said he has instructed the Civil Aviation Authority of Malaysia (CAAM) to draw up the framework following the Low Altitude Economy Forum held two weeks ago.
"I have instructed the CAAM management to draw up the regulatory framework for a launch by the end of this year," he said after officiating the groundbreaking ceremony of the Subang MRO Logistics Complex at Subang Aerotech Park on Thursday (July 9).
He said the new framework would complement the Malaysia Aerospace Industry Blueprint 2030 and pave the way for the growth of emerging aviation technologies and industries.
Speaking to reporters later, Loke said Malaysia should not place limits on its aerospace ambitions, particularly in the maintenance, repair and overhaul (MRO) segment, which continues to see strong demand across the Asia-Pacific region.
"There is no need to put a limit or cap on our target. The potential of Malaysia's aerospace industry, especially in the MRO segment, is huge.
"In the past, we may not have fully utilised our strategic advantages, but now is the time to unlock that potential," he said.
Loke said Malaysia's aerospace industry currently generates about RM32.5bil in annual revenue and supports more than 35,000 highly skilled jobs, while the Asia-Pacific MRO market is expected to exceed US$60bil by 2030.
He added that Malaysia is already ranked third in the Asia-Pacific region and fourth globally for business aviation MRO activities, but stressed that the country must continue investing in infrastructure, talent and technology to remain competitive.
Loke also pointed to the increasing importance of aviation to Malaysia's economy, noting that the value of the country's air trade reached RM644.08bil in the first five months of 2026, surpassing sea freight at RM618.02bil during the same period.
On Malaysia's partnership with Japan, Loke thanked the Japanese Embassy and Japanese companies for their continued confidence in the country's aviation and logistics sectors.
He said collaborations with Japan's Mitsui Fudosan Group have expanded beyond the new Subang MRO Logistics Complex to include the transformation of the Lalaport development into a transport-oriented city hub.
"We have been working very closely with Japan, and I sincerely hope we can further strengthen this cooperation through projects like these to promote greater investment and growth in the aerospace sector," he said.
The Subang MRO Logistics Complex is a joint venture between Malaysia Airports and Mitsui Fudosan Group, and is expected to strengthen Malaysia's aerospace ecosystem through improved logistics infrastructure, technology transfer and greater regional MRO capacity.
