Aerospace sector secures RM5.7bil manufacturing contracts
More than 500 new high-skilled jobs will be needed to support these contracts over the next two years.
The aerospace industry’s maintenance, repair, and overhaul sub-sector has received significant interest from foreign players looking to expand their business in Malaysia. (File pic)
LANGKAWI: Malaysia’s aerospace sector has secured RM5.7 billion worth of manufacturing contracts to produce aircraft parts and components for various global customers after the economy gradually reopened in late 2021.
Investment, trade and industry minister Tengku Zafrul Aziz said these projects will provide more localisation and supply chain opportunities for small and medium-sized enterprises (SMEs), with a potential sub-contract value of RM1 billion.
“Additionally, more than 500 new high-skilled jobs will be needed to support these contracts over the next two years,” he said in a statement.
“These aerospace manufacturing contracts will also generate an additional 15-20% worth of exports of aerospace parts and components, which stood at RM6.3 billion in 2022.”
Tengku Zafrul also noted that the maintenance, repair, and overhaul (MRO) sub-sector had received significant interest from foreign players looking to expand their business in Malaysia.
He added that these companies have also expressed interest in using Malaysia as a hub for their expansion into Southeast Asia.
Tengku Zafrul added that a few MRO projects valued at RM600 million are currently being implemented.
“Once completed, Malaysia will be able to offer more base maintenance service. This will allow specific aircraft components to be repaired in the country at more competitive rates and at faster turnaround times.”
He said all these achievements were expected to boost the aerospace industry’s 2022 revenue of RM15.3 billion by 30%.
Tengku Zafrul said his ministry was also working to ensure Malaysia is able to secure RM55.2 billion in revenue and 32,000 high-quality high-skilled jobs under the ministry’s New Industrial Master Plan 2030.
He said the ministry had also approved two aerospace projects worth RM146.75 million, involving aerospace manufacturing and MRO sub-sectors, in 2022.
Moving forward, an agency under the ministry — the National Aerospace Industry Corporation Malaysia — will develop strategic collaborations with original equipment manufacturers to enhance Malaysia’s aerospace supply chain and capitalise on the trend of outsourcing aerospace contracts to the Southeast Asia region.