Malaysia eyes bigger slice of 40,000-plane global aerospace boom
SHAH ALAM: Malaysia is looking to expand its role in the global aerospace supply chain by moving into higher-value maintenance, repair and overhaul (MRO) services as demand for commercial aircraft grows over the next 20 years.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said Boeing and Airbus projected that more than 40,000 new commercial aircraft would be needed over the next two decades, compared with the existing global fleet of about 35,000.
He said this presented significant opportunities across the aerospace value chain, not only in aircraft manufacturing and component production, but also in MRO services throughout the operational lifespan of these aircraft.
"Asia-Pacific will continue to play a major role as the region is expected to account for almost half of global demand for new passenger aircraft.
"Malaysia's strategic location, stability and established industrial ecosystem place us in a favourable position to participate in this growth," he said in a keynote address at the Malaysia Aerospace Industry Association's Aerospace Strategic Leadership Conference 2026 on Wednesday.
Johari added the global aerospace industry's long-term outlook remained encouraging as demand for air travel continued to expand, despite significant challenges arising from the ongoing conflict in the Middle East.
Malaysia's aerospace industry generated RM32.5 billion in revenue in 2025 and employed about 34,700 skilled workers across more than 300 local and international companies.
The MRO and aerospace manufacturing segments accounted for about 65 per cent of industry employment and 75 per cent of total revenue.
"We have established capabilities in aerostructures, advanced composites, precision engineering and specialised aircraft and engine components.
"Our MRO ecosystem also benefits from Malaysia's location within one of the world's most dynamic aviation regions," Johari said.
*INVEST IN DATA ANALYTICS AND DIGITALISATION*
Universiti Kuala Lumpur Business School economist Associate Professor Major Dr Mohd Harridon Mohamed Suffian said Malaysian MRO players should invest in data analytics and digitalisation to improve their maintenance operations and remain competitive.
He said most modern aircraft use digital systems, including fly-by-wire technology, and collect extensive data during flights.
"Thus, maintenance processes should take hold of these data and utilise these data for optimization of the maintenance practices.
"It is imperative for maintenance practices be optimised as this would deter or minimise wastages, and improper maintenance practices would be lowered or negated," Harridon told Business Times.
He said airlines would welcome the approach as it could reduce costs and prevent unnecessary maintenance.
He said MRO players must continuously upgrade their maintenance practices in line with technological advancements, ensuring they meet the stringent standards set by original equipment manufacturers (OEM).
"For their businesses to be financially sustainable, their maintenance standard should surpass the strict standard set by the OEM. This is to convince and entice airlines and clients to utilise their maintenance services," he said.
He said MRO players must establish stringent maintenance protocols to minimise the risk of aviation incidents linked to inadequate maintenance practices.
"With rigid maintenance protocols in place, clients would feel confident to hire theseMRO corporations to service and maintain their aircrafts, and subsequently a huge portion of the market can be captured by the local MRO players," Harridon said.
Under the Malaysian Aerospace Industry Blueprint 2030, Malaysia aims to raise annual aerospace industry revenue to RM55.2 billion and become a leading aerospace nation in Southeast Asia.
Harridon said Malaysia is on track to achieve the target, supported by the aviation industry's steady growth and its increasing contribution to the country's gross domestic product.
He said this could generate economic spillover benefits for surrounding areas by creating opportunities for supporting businesses that cater to the MRO sector.
"Several mega projects within the aviation industry had contributed to this positive traction where GE Aerospace is currently developing its overhaul and maintenance facility in Sepang.
"This would create an economic spill over to the surrounding area where there would be development of peripheral businesses that would cater to the primary maintenance landscape," he added.
He said Malaysia could also surpass its RM55.2 billion aerospace revenue target by 2030, as more aviation companies viewed the country as a favourable location for their business and economic growth.
