Aerospace sector has secured RM5.7 bln manufacturing jobs in less than two years
LANGKAWI, May 24 — Malaysia’s aerospace sector has secured a cumulative RM5.7 billion of manufacturing contracts to produce aircraft parts and components for various global customers since the economy gradually reopened in late 2021.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said his ministry anticipates “these projects would provide more localisation and supply chain opportunities for small and medium enterprises (SMEs) with a potential sub-contract value of RM1 billion.”
“Additionally, more than 500 new high-skilled jobs will be required to support these projects for the next two years,” he said in a statement issued by the Ministry of Investment, Trade and Industry (Miti).
The minister also noted that the maintenance, repair, and overhaul (MRO) sub-sector has received significant interest from local and foreign players to expand their business in Malaysia, or to use Malaysia as a hub for their expansion in Southeast Asia.
“A few MRO projects involving heavy and components MRO valued at RM600 million are currently being implemented and once completed, Malaysia will be able to offer more base maintenance service where specific aircraft components could be repaired in-country at more competitive rates and faster turnaround time,” Miti said.
The minister pointed out that all the achievements were expected to contribute an estimated 25 to 30 per cent uplift to the RM15.3 billion industry revenue achieved in 2022.
“The aerospace manufacturing contracts will also generate an additional 15 to 20 per cent exports of aerospace parts and components which stood at RM6.3 billion in 2022,” he said.
Tengku Zafrul said his ministry is thinking long-term and putting in the right enablers under the New Industrial Master Plan to also ensure achieving Malaysia’s ambition to secure RM55.2 billion in revenue and 32,000 high-quality high-skilled jobs.
The ministry said it has also approved two aerospace projects worth RM146.75 million involving aerospace manufacturing and MRO sub-sectors in 2022.
Moving forward, an agency under Miti – the National Aerospace Industry Corporation Malaysia (NAICO) – would develop strategic collaborations with original equipment manufacturers to enhance Malaysia’s aerospace supply chain and capitalise on the trend to outsource aerospace contracts to the Southeast Asia region.
“NAICO, through the Malaysia Aerospace Centre of Excellence, would identify and nurture home-grown SMEs that have the potential to become global champions, while also helping to secure the nation’s position in the aerospace supply chain worldwide,” Miti said.