Mustapa: Malaysia aims to grow aerospace industry by 5pc this year
SUBANG JAYA: The country’s aerospace industry is expected to grow five per cent this year, with the aerospace manufacturing sector contributing 54 per cent of the overall revenue.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said last year was a record year for Malaysia’s aerospace exports, which totalled RM8.49 billion and was up 54 per cent from 2016.
The exports were mainly aerospace parts and components.
“We aim to grow the industry by five per cent this year. Malaysia is planning to increase revenue from the aerospace industry to RM55 billion in 2030 from RM13.5 billion last year,” he said at the groundbreaking of Axis REIT Managers Bhd-Senior Aerospace Upeca’s facility at the Subang Aerotech Park yesterday.
“We are also planning to have 32,000 jobs under the Malaysian Aerospace Industry Blueprint 2030.
“We have also set ourselves up as a turboprop and aerospace hub for Southeast Asia. It is a challenge, which is why we welcome such investments from Senior Aerospace Upeca in order to grow the industry further and achieve our revenue target by 2030,” he added.
United Kingdombased Senior Aerospace Upeca manufactures and assembles build-toprint structural components for the civil aerospace industry in Malaysia and is a key supplier to major aerospace companies worldwide.
Mustapa said the maintenance, repair and overhaul (MRO) segment was also expected to continue to expand in the aero engine and component segment,
Last year, 13 aerospace projects were approved, with investments of RM649 million, of which 80 per cent were domestic investments. DATUK SERI MUSTAPA MOHAMED International Trade and Industry Minister
with MRO revenue targeted at RM6.5 billion.
“Last year, 13 aerospace projects were approved, with investments of RM649 million, of which 80 per cent were domestic investments. The approved projects are expected to generate 1,021 employment opportunities,” he said.
Subang Aerotech Park will be developed by Malaysia Airports Holdings Bhd (MAHB) on a 24ha site. The park is dedicated to aerospace parts and components manufacturing, engineering services and MRO.
New investments amounting to RM151 million will include stateof-the-art automation manufacturing and comprehensive special process from Senior Plc group.
The construction of the Axis REIT Managers Bhd-Senior Aerospace Upeca facility will begin in the first half of this year.
About 360 engineering and technical personnel are expected to be employed at the new facility.
Meanwhile, MAHB chief executive officer Datuk Badlisham Ghazali said: “We estimate Subang Aerotech Park to attract more than RM1 billion in investments, and support more than 5,000 jobs in the next five years.
“With about 70 aerospace companies already based within the Subang aerospace ecosystem, the Subang Aerotech Park will further provide a platform to build the aerospace SME supply chain, creating a complete aerospace ecosystem.”