Malaysia's ascent in aerospace and mobility innovation

SINCE its establishment in 1992 under the Science, Technology and Innovation Ministry, the Malaysian Technology Development Corporation (MTDC) has pursued one clear and demanding mission: to transform Malaysian technology into Malaysian enterprise.

This mandate covers funding, investment, advisory and ecosystem enablement for small and medium enterprises (SMEs) and scale-ups that are commercialising locally developed solutions.

WHY AEROSPACE AND MOBILITY — AND WHY NOW

Aerospace and next-generation mobility represent some of Malaysia's most promising high-value, export-oriented opportunities.

The national aerospace blueprint envisions Malaysia as the leading aerospace nation in Southeast Asia by 2030, targeting RM55.2 billion in annual revenue and over 32,000 high-income jobs through maintenance, repair and overhaul (MRO), manufacturing, engineering and design services.

Before the Covid-19 pandemic, Malaysia already hosted more than 200 aerospace companies across the value chain, with MRO and aero-manufacturing serving as major revenue engines.

Post-pandemic recovery has been supported by renewed aircraft orders and diversification of global supply chains across Asia.

On the mobility front, Malaysia's low-carbon transport agenda is driving significant investment in electric vehicle (EV) ecosystems and charging infrastructure.

The Low Carbon Mobility Blueprint sets a goal of 10,000 EV charging points by 2025. Both the Investment, Trade and Industry Ministry (Miti) and the Malaysian Green Technology and Climate Change Corporation (MGTC) have reaffirmed this target, together with EV adoption aspirations of 15 per cent of total industry volume by 2030 and 80 per cent by 2050.

Aviation decarbonisation is also gaining real momentum. In September, Petronas delivered Malaysia's first locally blended sustainable aviation fuel (SAF) for scheduled long-haul services, marking an early milestone as Malaysia prepares for SAF production and blending mandates aligned with the National Energy Transition Roadmap.

INVESTMENT, CAPABILITY AND MARKET ACCESS

MTDC plays a catalytic role in bridging technology development, commercialisation and funding (including investments) to de-risk local technologies and accelerate their path to market.

It does this through a combination of capital (developmental and commercial funds), capability development (advisory, training and technopreneur upskilling) and market access (ecosystem platforms and technology centres).

Investment and funding pathways:

MTDC manages developmental and commercial funds that support the validation and scaling of local technologies across sectors, including aerospace supply-chain solutions such as materials, precision engineering, non-destructive testing and test systems, as well as mobility technologies, including vehicle systems, batteries, power electronics, charging and data platforms.

Capability building & i4.0 adoption:

Through the Centre of 9 Pillars (Co9P®️) and the Technopreneur Training Academy (TENTRA), MTDC assists firms in adopting Industry 4.0 tools. These capabilities are essential for aerospace and EV supply chains where traceability, quality assurance and digital production are critical.

Ecosystem enablement:

MTDC's technology centres and community-in-practice model connect innovators with research institutions, solution providers and standards bodies. This shortens the journey between proofs-of-concept and qualified production, helping Malaysian companies compete more effectively in global markets.

WHERE MTDC FOCUSES FOR IMPACT

Aerospace supply chains:

Malaysia's aerospace development is coordinated by the National Aerospace Industry Corporation Malaysia (NAICO) under Miti, which leads the implementation of the Malaysian Aerospace Industry Blueprint.

MTDC complements this national effort with capital and capability programmes that enable local SMEs to meet certification, digitalisation and quality standards required by tier-one suppliers and original equipment manufacturers.

The New Industrial Master Plan outlines five key sub-sectors for Malaysia's aerospace advancement: MRO, manufacturing, engineering and design, systems integration and training.

MTDC's investment and Co9P®️ initiatives directly support these areas, particularly in advanced materials, precision machining, automation and data systems for MRO efficiency.

E-mobility ecosystem:

In the electric mobility space, MTDC focuses on critical enablers such as power electronics, battery management systems, telematics and grid-integration software.

These capabilities underpin reliable vehicle performance and charging systems while supporting Malaysia's efforts to expand a nationwide EV charging network and accelerate adoption.

Aviation sustainability:

As sustainable aviation fuel supply chains mature, MTDC can support local technology firms in feedstock pre-processing, process intensification, monitoring systems and verification technologies.

These adjacent segments offer competitive opportunities for Malaysian innovators as Petronas and its partners scale production and blending capacity.

CONVERGENCE MOMENTS: PRIORITY FORUMS FOR AEROSPACE AND MOBILITY

Aeromart Summit Kuala Lumpur 2025:

MTDC's priority industry forum this cycle is Aeromart Summit Kuala Lumpur, a business-to-business convention purpose-built for aerospace and MRO supply chains.

It is organised by BCI Aerospace/abe, with the 2025 edition positioned as the first in Southeast Asia. MTDC has publicly signalled a significant role at the summit, aligned with its focus on supply-chain qualification and capability upgrading for Malaysian firms.

By comparison, Global Automotive and Technology Expo (GATE) 2025 and E-Mobility Asia (EMA) 2025 function as broader mobility platforms spanning EV systems, charging infrastructure and connected technologies — useful for horizon-scanning and ecosystem dialogue.

MTDC participated as a Supporting Partner to take part in sector dialogue consistent with its public mandate and to maintain constructive engagement with automotive and mobility stakeholders.

WHAT SUCCESS LOOKS LIKE

For MTDC, success in aerospace and mobility means seeing more Malaysian companies qualify for global supply chains, expand exports of high-value components and services, and sustain margins driven by innovation.

Achieving this requires patient capital, structured capability building and credible partnerships anchored in performance and results.

Guided by national direction and real-time market needs, MTDC continues to connect Malaysian technology firms with the financing, knowledge and networks necessary to compete in a growing ecosystem of manufacturers, MRO providers and related services.