‘Aerospace sector to generate RM55.2b revenue by 2030’
Mida, MAHB also working to attract more FDIs to growth areas such as KLIA Aeropolis, Subang Airport
THE Malaysian Investment Development Authority (Mida) expects the local aerospace industry to generate RM55.2 billion in revenue by 2030.
Revenue from maintenance, repair and overhaul (MRO) was expected to hit RM20.4 billion, said Mida deputy chief executive officer Datuk N. Rajendran.
Another RM21.2 billion could be generated from aero-manufacturing and RM13.6 billion from engineering and design services.
He said the aerospace industry was an economic growth engine under the 11th Malaysia Plan.
“We will be looking at the ecosystem of the aerospace industry and the potential companies that can be targeted to fill up the gaps in the ecosystem,” said Rajendran after signing a memorandum of understanding, here, yesterday.
Mida and Malaysia Airports Holdings Bhd (MAHB) are looking to attract foreign direct investments (FDIs) to achieve value accretion to the national economy.
“We look to attract FDIs to growth potential areas — KLIA Aeropolis and Subang Airport. This is aligned with MAHB’s goals and aspirations in championing Industry 4.0,” said MAHB acting group chief executive officer Raja Azmi Raja Nazuddin.
KLIA Aeropolis is a flagship airport city within the 100 sq km of the Kuala Lumpur International Airport (KLIA) in Sepang, Selangor.
Raja Azmi said the Subang Airport Regeneration Initiative was to position the area as a hub for aviation and aerospace businesses.
“It is now work in progress. We hope that most of the moving parts will be steady and fully operational by 2025,” he added.
At Subang, more than 200 firms are involved in MRO, aeromanufacturing, education and training, systems integration and engineering and design activities.
In the first quarter, Mida’s approved investments in the aerospace industry totalled RM175.4 million from four manufacturing projects and RM8.59 million from the MRO sector.
Raja Azmi said MAHB envisaged another one million sq ft of land to be developed at the KLIA Aeropolis over the next three years, in addition to the current projects with Cainiao, the logistics arm of Alibaba Group.
Malaysian Investment Development Authority deputy chief executive officer (CEO) Datuk N. Rajendran (right) exchanging documents with Malaysia Airports Holdings Bhd acting group CEO Raja Azmi Raja Nazuddin after the signing of a memorandum of understanding in Kuala Lumpur yesterday.