Naguib Mohd Nor, President of the Malaysia Aerospace Industry Association (MAIA)
Assalammualaikum and Best Wishes to all MAIA members
Malaysia is currently facing an unprecedented situation – Following the global coronavirus (COVID-19) outbreak and the recent spike in COVID-19 cases in Malaysia, the Government of Malaysia is enforcing a Restriction of Movement Order (“RMO”) starting from 18 March 2020 to 14 April 2020, and this Order is effective nationwide.
This RMO has resulted in the temporary suspension of many businesses and has impacted various industries, including aerospace. The Board of Directors of MAIA has been actively seeking feedback from both large companies and also our SME members, to get a clearer picture of how the RMO has impacted the aerospace industry in Malaysia.
Since MAIA was formed 4 years ago, and with the support of our members, MAIA has gone from strength to strength and our membership has grown to 90 aerospace companies. The latest including Air Asia whom we are proud to admit just this month. MAIA has been the voice of the aerospace industry in Malaysia, and has worked with the Government of Malaysia, being an advocate for our members, and also acting as liaison between Government and industry.
Regrettably, based on current feedback, it appears that an extended suspension of business and operations, particularly for our Tier 1 and Tier 2 companies, will have a dire impact on both existing contracts, as well as the ability of Malaysian aerospace companies to continue receiving future workflow. We are concerned about the resulting negative impact on Malaysia’s GDP, and in the longer-term, the possible impact on our members’ relationship with the various OEMs.
With these concerns in mind, the MAIA Board of Directors has taken the initiative to continuously engage with various Government agencies, to highlight the challenges faced by our members, during the period of the RMO.
In particular, MAIA has taken the following steps:
- We have compiled representative data of the impact of the RMO, on the revenue of aerospace companies; and the possible impact on contracts and skills developments for the aerospace industry over the longer-term;
- Working with our members, and in an effort to comply with the spirit of the RMO as far as possible, we have proposed for aerospace operations to be continued in a controlled manner and with a minimal workforce; and
- Although the initial submission to MITI has not resulted in any exemptions for our members, we have since appealed directly to YAB Tan Sri Muhyiddin Yassin, for a limited exemption to be given to our members
In order to find the best way forward for the Malaysian aerospace industry, we seek your continued support – we believe it is key to be able to show the Government that aerospace companies in Malaysia stand together in these difficult times, and that we speak with one voice. MAIA will continue to serve the aerospace industry and will seek to ensure the continuity and longevity of aerospace operations and services for the benefit of our nation.