Malaysia's MRO sector on course for RM55bil target
MALAYSIA's aerospace maintenance, repair and overhaul (MRO) industry is accelerating towards its RM55 billion revenue target by 2030.
This will enable the country to capture a sizeable share of Asia-Pacific's booming aviation services market amid surging aircraft demand and intensifying regional competition.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said yesterday the target would account for roughly 20 per cent of the Asia-Pacific MRO market, which is projected to surpass US$60 billion by the end of the decade.
He said Malaysia's MRO segment has emerged as the backbone of the national aerospace industry, generating high-value jobs for more than 12,000 workers while anchoring the country's ambitions to become a regional aerospace powerhouse.
Malaysia is already regarded as one of Asia-Pacific's established MRO centres.
This is supported by a mature airport ecosystem, strong connectivity, competitive operating costs and a deep pool of aerospace talent.
The country serves as a strategic gateway for servicing airlines operating across Southeast Asia, one of the world's fastest-growing aviation markets.
Sim said Malaysia could not afford to stand still as regional rivals expand their aerospace capabilities.
He said this at the MRO Southeast Asia conference.
"Malaysia must move further up the value chain. We are shifting our focus towards higher-value MRO segments such as components and engineering competence."
Malaysia's aerospace sector generated RM32.5 billion in revenue in 2025, supported by more than 250 companies and a workforce of 34,700 Malaysians.
This underscores the industry's growing importance as a strategic economic pillar under the National Industrial Master Plan 2030 and the Malaysia Aerospace Industry Blueprint 2030.
Sim said Malaysia's aerospace journey has transformed dramatically over the past two decades, from a fledgling industry in the early 2000s to a regional MRO hub today, driven largely through the development of Malaysia Airports Holdings Bhd's aviation ecosystem.
He said global aerospace giants, including Airbus, Boeing, GE Aerospace, Safran and Turkish Aerospace Industries, have continued expanding their Malaysian operations.
This reflects rising confidence in the country's engineering depth, technical expertise and long-term aerospace potential.
The government is intensifying efforts to move the industry to higher-value aerospace activities.
This includes component MRO, engineering services, aerospace parts manufacturing, research and development and advanced design capabilities.
The two-day MRO Southeast Asia conference gathered over 350 participants from airlines, original equipment manufacturers (OEMs), MRO providers, investors and policymakers.
MAHB managing director Datuk Mohd Izani Ghani said the conference reflects the growing importance of Malaysia's aerospace ecosystem and the need for stronger regional collaboration as aviation demand in Asia-Pacific continues to expand.
"MAHB is committed to supporting this growth by strengthening the ecosystem surrounding our airports, particularly at KLIA and Subang Airport, where aerospace, aviation services and connectivity continue to evolve in tandem."
MAHB's aerospace ecosystems at KLIA and Subang Airport host more than 30 per cent of Malaysia's aerospace operators, collectively contributing RM25 billion or close to 40 per cent of the country's aerospace revenue.
MAHB chief airports officer Bryan Thompson said the MRO industry is becoming increasingly important to sustaining global aviation growth as airlines face mounting operational and maintenance challenges.
He said the 180ha Selangor Aero Park at KLIA Aeropolis continues to attract major global aerospace players with GE Aerospace serving as the anchor tenant for the development.
He added that GE Aerospace's expansion plans at the site include engine test cells and MRO facilities, while infrastructure development for the first phase remains on track for completion in the first quarter of 2027.
