Malaysia’s aerospace ambitions take flight
This article first appeared in The Edge Malaysia Weekly on June 8, 2026 - June 14, 2026
AS the global aerospace industry grapples with the ongoing supply chain disruptions, some of the world’s biggest aerospace companies are doubling down on their investments in Malaysia, betting that its skilled workforce, established aviation infrastructure and competitive costs can help meet surging demand for aircraft maintenance.
US aircraft engine maker GE Aerospace is building a new 500,000 sq ft engine overhaul facility in Sepang, Selangor, while Singapore’s SIA Engineering Co Ltd (SIAEC) has launched a base maintenance operation at the Sultan Abdul Aziz Shah Airport (Subang Airport) in Subang, underscoring Malaysia’s growing importance as a regional aerospace hub.
“It is a vote of confidence in the country’s ecosystem and talent pool,” Kong Hon Leong, managing director and executive plant leader of GE Engine Services (Malaysia) Sdn Bhd (GEESM), tells The Edge in an interview.
Construction of GE Aerospace’s new facility has begun and is expected to be completed by 2028 or 2029. The first phase involves a dedicated engine test cell, followed by a full maintenance, repair and overhaul (MRO) facility six to 12 months later.
Kong declines to disclose the investment value, only mentioning that the project is part of GE Aerospace’s planned US$45 million investment programme across its Asia-Pacific MRO and component repair network over the next five years.
The expansion is set to significantly increase capacity at the Malaysian operations, which overhauls LEAP engines used on Airbus A320neo and Boeing 737 MAX aircraft, as well as the older CFM56 engines that power earlier generations of narrow-body jets. The company’s existing 300,000 sq ft facility in Subang, which has been operating since 1997, employs about 700 workers.
“This test facility alone will at least double our current annual engine overhaul capacity in Subang,” says Kong.
SIAEC’s newly launched Base Maintenance Malaysia Sdn Bhd (BMM) facility at Subang Airport is also ramping up operations. The first of two hangars can accommodate two wide-body aircraft and one narrow-body aircraft simultaneously, with a second hangar scheduled to be operational by the end of this year. Once fully operational, the facility will be capable of handling up to six aircraft maintenance checks concurrently.
BMM CEO Lee Yang Loong says Malaysia’s skilled aerospace workforce and established aviation infrastructure were key factors behind the company’s decision to invest. “There are many training schools and a supply of talented aerospace professionals here to support maintenance activities,” he said at the opening of the BMM facility recently.
The availability of ready-built infrastructure in Subang has also proved to be attractive. Impeccable Vintage Properties Sdn Bhd, a unit of Khazanah Nasional Bhd, has developed six aircraft hangars at Subang Airport that can be brought into service much faster than greenfield developments elsewhere.
Lee says Malaysia’s mature aerospace ecosystem also helped tip the balance. “Many aerospace companies are already based here. The regulatory framework is established, the policies are clear, and that makes it easier for us to ensure our investment succeeds,” he adds.
BMM has hired more than 350 employees, about 95% of whom are Malaysians. Many of them underwent year-long aircraft maintenance training programmes in Singapore before returning to Malaysia.
The company has already received approvals from the civil aviation authorities of Malaysia and Singapore and is pursuing certification from the European Union Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA), which would allow it to secure more international maintenance contracts.
BMM carried out its first A350 maintenance check in November 2025 after obtaining the necessary approvals for its first hangar.
“Our demand is much bigger than the capacity that we have in Singapore. The objective is to bring third-party airline customers here as we expand our approvals and capabilities,” says Lee.
A decades-long strategy begins to pay off
Malaysia’s aerospace ambitions have long been in the making. The industry generated RM32.5 billion in revenue in 2025, more than double the level in 2019, according to the National Aerospace Industry Corp Malaysia (NAICO Malaysia). Under the Malaysian Aerospace Industry Blueprint 2030 (MAIB 2030), the government aims to raise that figure to RM55.2 billion by the end of the decade.
MRO activities accounted for about 40% of industry revenue last year, overtaking aerospace manufacturing, which contributed around 35%.
Aircraft manufacturers continue to face bottlenecks in the supply of engines and components, delaying deliveries of new aircraft. As a result, airlines are keeping existing fleets in service for longer periods, increasing demand for maintenance and repairs.
For Malaysia, the trend presents a significant opportunity.
With four years left to meet the blueprint’s revenue target, NAICO Malaysia CEO Shamsul Kamar Abu Samah says the focus now is on accelerating industry activity and attracting more high-quality investments.
Malaysia is home to around 250 aerospace companies, more than 40% of which are involved in MRO activities. Global industry players — including GE Aerospace, Collins Aerospace, Airbus, Boeing, Safran, GKN Aerospace and Barnes Aerospace — have expanded their presence in the country in recent years.
“In Southeast Asia, Malaysia ranks second after Singapore in aerospace activities. But we are not far behind,” Shamsul Kamar tells The Edge in a phone interview.
The country aims to increase its share of the global MRO market to 5% by 2030 from 4% in 2025, supported by investments in digitalisation, automation and advanced manufacturing technologies.
Shamsul Kamar attributes much of the industry’s growth to Malaysia’s aerospace blueprint, which was introduced in 1997 and is now in its second iteration. NAICO Malaysia is preparing a third edition of the blueprint, which is scheduled to be rolled out later this year.
“The blueprint has been effective in accelerating the growth of the industry,” says the CEO, adding that while some areas could be strengthened, its overall direction remains relevant.
To him, the recent expansion plans of GE Aerospace and BMM, as well as Collins Aerospace’s US$63 million expanded MRO facility in Subang Aerotech Park, show that Malaysia’s aerospace ecosystem is gaining momentum.
The growth is not limited to foreign investors. MAB Engineering Services Sdn Bhd (MABES), a wholly-owned subsidiary of Malaysia Aviation Group Bhd (MAG), is planning another hangar in Subang Airport. Meanwhile, Asia Digital Engineering Sdn Bhd (ADE), part of Capital A Bhd (KL:CAPITALA), currently operates 16 narrow-body maintenance lines and plans to expand capacity to 20 by the end of next year.
NAICO Malaysia, an agency under the Ministry of Investment, Trade and Industry, is responsible for coordinating the implementation of MAIB 2030 under the 12th Malaysia Plan. “We are a dedicated agency that looks at the entire aerospace ecosystem. The areas where Malaysia can excel are aerospace manufacturing, MRO, systems integration, education and training, and engineering and design services,” says Shamsul Kamar.
The battle for talent
The aerospace sector’s rapid expansion has intensified competition for skilled workers across the region as aerospace companies in Singapore and the Middle East continue to hire aggressively. To address the labour shortage, companies are investing heavily in training and apprenticeship programmes while working with universities and technical institutions to develop local talent pipelines.
Shamsul Kamar says younger workers are increasingly looking beyond remuneration and job security, and placing greater value on opportunities to work with advanced technologies and cutting-edge manufacturing processes. That is why NAICO Malaysia is pushing to modernise the industry through digitalisation, automation and additive manufacturing.
At Universiti Teknologi MARA in Shah Alam, for example, the agency has established a facility that focuses on wire-arc additive manufacturing, a form of industrial metal 3D printing. Elsewhere, companies are introducing digital maintenance records, predictive maintenance systems and cloud-based documentation to improve efficiency and reduce turnaround times.
The broader goal is to ensure Malaysia remains competitive as aerospace maintenance enters a new era defined by data analytics, automation and artificial intelligence.
Shamsul Kamar says Malaysia’s aerospace industry employs about 34,700 people, including more than 12,000 in the MRO segment. Yet, demand continues to outstrip supply. The country will need more than 5,000 additional aerospace workers over the next five years, he adds.
For GE Aerospace, Malaysia is becoming increasingly important not only as a maintenance hub but also as a source of skilled talent. The company’s Malaysian facility is part of its wider Asia-Pacific network that includes two operations in Singapore and facilities in South Korea and Australia.
Each set-up serves a different function in GE Aerospace’s global engine services business. “They are all supporting different engine types, customers and functions,” says Kong.
Malaysia is one of five locations selected for GE Aerospace’s US$30 million global workforce development programme, which aims to train 10,000 workers for the aerospace and manufacturing sectors by 2030. The other locations are in Wrocaw, Poland; and Auburn, Alabama; the Cincinnati-Dayton region in Ohio; and Dallas, Texas, in the US.
On a separate note, the company has committed US$125,000 to Universiti Kuala Lumpur Malaysian Institute of Aviation Technology (UniKL MIAT) to support aviation education and workforce development.
“Globally, everybody is hiring. The Middle East is hiring, Singapore is hiring, and there are more opportunities in Malaysia as new MRO shops continue to open,” says Doong Su Lyn, country HR leader at GEESM.
A key pillar of the company’s talent strategy is its apprenticeship programme, which takes between 18 and 24 months to produce certified aircraft engine technicians.
“We cannot simply hire fresh graduates and put them directly on engines. This industry requires specialised training and certification,” she says.
Over the past three years, GE Aerospace has trained more than 100 apprentices, many of whom are certified to work on CFM56 and LEAP engines.
While employee turnover remains an industry-wide challenge, the priority is to maintain a sustainable pipeline of skilled workers, says Doong.
That challenge is likely to become more pressing as the company expands. GE Aerospace has more than doubled its Malaysian workforce since the pandemic, growing from about 300 employees to more than 700 today.
“When the new facility in Sepang becomes operational, we expect to add another 300 workers. Eventually, our workforce could reach 1,200 employees, which would mean adding about 500 more people from the current level,” says Kong.
Notably, 99% of GEESM’s workforce, from technicians to senior management, is made up of local talent.
To manage surging demand without proportionally increasing its headcount, GE Aerospace has adopted a production model inspired by assembly-line principles. The company calls its operating framework Flight Deck, a management system designed to improve productivity, identify operational bottlenecks early and standardise best practices across its global network.
At the Malaysian facility, that has translated into a flow-line approach where engines move through service stages in a more structured sequence.
“The objective is to detect abnormalities and issues early. Since implementing this in April 2024, we have managed to process more engines with fewer people,” says Kong.
The model also benefits from GE Aerospace’s global footprint, which enables facilities to share technical knowledge and operational lessons. “If one facility in the UK, for example, encounters a problem, the rest of the network learns from it. We don’t need everyone to make the same mistake before improving,” he adds.
Airline fleet growth to drive strong MRO demand until 2035
According to Daniel Williams, head of fleet and flight data at Aviation Week Network, airlines worldwide are expected to take delivery of about 21,000 commercial aircraft between 2026 and 2035. Of those, around 3,800 will be delivered in Asia-Pacific.
“The overwhelming majority of new aircraft — about 75% — will be narrow-body jets, compared with 18% for wide-body aircraft,” he said at the MRO Southeast Asia conference last month.
Of the 3,300 aircraft currently on order in the region, AirAsia accounts for about 15%, followed by VietJet Air with 12%.
At the same time, roughly 10,000 aircraft are expected to be retired globally over the next decade. Even after those retirements, the world’s commercial fleet is projected to expand by about 11,000 aircraft — all of which will require MRO services at some stage of their operating lives, said Williams.
The challenge is that maintenance capacity cannot be expanded overnight, he noted. “It takes time for MRO to come through the system. You need to train people. You need to build the supply chain. You can’t just turn on a factory today.”
Williams estimated that the global MRO aftermarket would be worth US$1.6 trillion over the next decade, generating more than 107,000 engine shop visits valued at US$676.6 billion. Engine maintenance is expected to account for 53% of total MRO spending, followed by components at 21% and line maintenance at 15%.
Asia-Pacific alone is projected to generate US$275 billion in MRO demand between 2026 and 2035, expanding at a compound annual growth rate of 2.6%. For countries such as Malaysia, which are investing heavily in maintenance infrastructure and workforce development, those forecasts suggest that the industry’s growth story is only just beginning.
Limited impact from Middle East tensions
The escalating conflict in the Middle East has added a fresh layer of uncertainty to the global aviation industry, raising concerns over fuel prices, supply chains and airline operations. For now, however, Malaysia’s aviation maintenance, repair and overhaul (MRO) sector appears largely insulated from the fallout.
“There has been no immediate impact,” says Kong Hon Leong, managing director and executive plant leader of GE Engine Services (Malaysia) Sdn Bhd (GEESM).
The company continues to monitor developments closely and remains in contact with customers, but has yet to see any significant effect on its operations, he says.
Like many aviation businesses, GE Aerospace is exposed to rising fuel prices because aviation fuel is used to run engines in test cells during maintenance and overhaul work. While costs have increased, says Kong, they are manageable. “We do buy fuel to run engines in our test cell, so costs have risen. But at a business level, it is not a major concern yet.”
This resilience reflects the broader reality of the aviation MRO industry. While geopolitical crises can affect airline profitability and travel demand, aircraft must still undergo regular maintenance to remain airworthy.
National Aerospace Industry Corp Malaysia (NAICO Malaysia) CEO Shamsul Kamar Abu Samah says there is no sign that airlines are cancelling aircraft orders or that manufacturers such as Boeing and Airbus are scaling back production plans.
“I don’t see any cancellation of orders from airlines, and Boeing and Airbus have not announced any reduction in their backlogs,” he tells The Edge.
Because maintenance work is driven largely by safety and regulatory requirements, it tends to be less vulnerable to short-term market disruptions. “MRO still plays its role in ensuring the airworthiness of aircraft. Aircraft continue to fly even when airlines are dealing with geopolitical challenges,” Shamsul Kamar adds.
In some respects, prolonged instability could even create opportunities for Malaysian maintenance providers. Airlines operating in conflict-affected regions may increasingly seek maintenance support, aircraft parking and technical services elsewhere.
“There are opportunities for us to support Middle Eastern operators if the conflict continues for a long period. Malaysia has the capability to maintain aircraft beyond those operating in our domestic market,” he says.
This view is shared by Base Maintenance Malaysia Sdn Bhd (BMM), the local maintenance venture established by Singapore’s SIA Engineering Co Ltd.
BMM chairman Foo Kean Shuh says the industry has spent the past several years navigating supply chain disruptions that emerged during the Covid-19 pandemic, with conditions gradually improving.
“With the recent geopolitical developments, we are monitoring the situation closely, but we have not seen anything significant so far,” he adds.
If anything, BMM is seeing growing interest from prospective customers. “In the space of base maintenance, we are actually receiving more enquiries. Some customers may be looking at other options, and we are seeing opportunities emerging from that,” says Foo.
Spare parts availability, once one of the industry’s most pressing concerns during the post-pandemic recovery, has also shown signs of improvement. “I would say the situation is no worse than what we have been experiencing. In fact, it is progressively getting better,” he says.
The industry’s confidence is reflected in GEESM’s recent financial performance. According to filings with the Companies Commission of Malaysia (SSM), the company nearly doubled net profit to RM126.8 million in the financial year ended Dec 31, 2024, from RM64.9 million a year earlier. Revenue rose 52.3% to RM3.78 billion from RM2.48 billion.
Kong says the company’s investment plans are driven primarily by long-term growth in engine fleets and maintenance demand rather than short-term geopolitical developments. “Our business growth follows engine volume growth. The investments we are making in facilities and capacity reflect that trajectory.”
GE Aerospace’s Malaysian operations increasingly serve customers from far beyond the domestic market. The Subang facility supports more than 50 airlines worldwide, including Flydubai, IndiGo and American Airlines, with AirAsia accounting for roughly 10% of its business.
“We do not want to be only a local player. We want to be an international player in Malaysia,” says Kong.
Within its global network, the Malaysian facility has become one of the company’s strongest-performing LEAP engine service centres, helped by the introduction of its Flight Deck operating system.
According to Kong, weekly service throughput has more than tripled while estimated turnaround times have reduced by more than 60%. “Customers like to come to our shop in Malaysia because of the turnaround time,” he says.
For now, MRO players say the industry’s immediate outlook remains largely unchanged despite the rising geopolitical tensions. Yet, they acknowledge that a prolonged escalation could eventually affect airlines through higher fuel prices, weaker travel demand or broader economic uncertainty.
“If the situation drags on for an extended period, there will inevitably be some impact. At this point, however, it remains manageable,” says NAICO Malaysia’s Shamsul Kamar.
As global aerospace companies search for additional maintenance capacity and diversify their supply chains, Malaysia is increasingly positioning itself as a credible alternative to more established aviation centres. The challenge ahead is whether the country can scale up its talent base, infrastructure and technology quickly enough to match the pace of demand.
