Airbus, Boeing to boost Malaysia's RM30bil aerospace target

KUALA LUMPUR: Malaysia's aerospace industry is projected to generate RM30 billion in revenue this year, up from RM25.1 billion recorded in 2024.

Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said this will be supported by the existing project pipeline as well as the participation of international companies such as Airbus, Boeing and growing presence of local players.

He said the target is realistic given the rapid growth of Malaysia's aerospace industry, which continues to gain a stronger foothold in the global supply chain.

"We are optimistic that the RM30 billion target can be achieved this year, considering the involvement of international companies and encouraging development of the domestic industry.

"In addition, Malaysia continues to strengthen international cooperation in the aerospace sector, including with China, Europe, and the United States," he told the media at the 10th anniversary celebration of the National Aerospace Industry Corporation Malaysia (Naico) here today.

Tengku Zafrul said Malaysia's aerospace industry generated RM25.1 billion in revenue last year, the highest level in a decade and currently supports 30,000 skilled workers across the ecosystem.

He added that recent major investments, including the expanded presence of Airbus and Boeing, reflect strong investor confidence in Malaysia's rising role as a hub for advanced aerospace manufacturing in the Asia Pacific region.

The local aerospace industry currently supports about 30,000 skilled workers and attracted RM1.5 billion in approved investments in 2024, making it one of the fastest-growing sectors in the country's high-technology portfolio.

Exports from the industry reportedly stood at RM8.17 billion in 2024, with projections to surpass RM9 billion in 2025.

This reflects increased global confidence in Malaysia's role as a manufacturing and engineering hub for the aviation sector.

The sector's expansion is guided by the Malaysia Aerospace Industry Blueprint 2030 led by Naico, a national coordinating body under the Investment, Trade and Industry Ministry.

The focus areas include aerostructure manufacturing, avionics, systems integration as well as maintenance, repair and overhaul.

Local companies such as UPECA Aerotech reportedly are already playing a vital role in global supply chains, supplying parts for major platforms including Airbus and Boeing aircraft.

SMEs are also increasingly integrated into the ecosystem, contributing innovation and flexibility to support the sector's evolving demands.