‘OUR GOAL TO BE NO. 1 AEROSPACE NATION IN SE-ASIA’
Industry’s revenue to exceed RM55 billion in 2030, says minister
MALAYSIA is eyeing to become Southeast Asia’s leading aerospace nation by 2030, with a targeted annual revenue of RM55.2 billion. International Trade and Industry Minister Datuk Darell Leiking said the government had identified the aerospace sector as one of the new growth industries due to the impressive evolution and enormous future potential of the industry.
He said in 2017, the Malaysian aerospace industry recorded a revenue of RM13.5 billion, with aerospace manufacturing contributing 48 per cent to the total.
“Under the 11th Malaysia Plan, the government has identified the aerospace sector as one of the new growth industries.
“The aim is to shift Malaysia’s economy from labour intensive to high value added, knowledge and innovation-based economic activities, with a focus on the services and manufacturing sectors.”
He said in recent years, the sector had seen a surge in investments, with some multinationals establishing and expanding operations across a growing network of aerospace facilities.
This, he said, had accelerated the growth of the local supply chain.
“Global aerospace players in Malaysia include Airbus, Spirit AeroSystems, Safran Landing Systems, Honeywell Aerospace Avionics, Singapore Aerospace Manufacturing, GE and UTC Aerospace Systems. Recent key investment projects include GKN Aerospace’s new repair facility and the expansion of Senior Aerospace.
“The development has also spurred the government to view the aerospace industry as a critical sector, which offers abundant opportunities for the transfer of advanced technologies in engineering, electronics, composite materials, system integration, MRO (maintenance, repair and overhaul) and industry-led research and technology,” he said.
He was speaking at the launch of the RM140 million SAM Engineering and Equipment (M) Bhd (Samee) plant in Bukit Mertajam, which will produce aerospace components for Airbus commercial aircraft.
Present were Penang Chief Minister Chow Kon Yeow, SAM chairman Philip Yeo and Samee chairman Tan Kai Hoe.
Airbus and Boeing are forecasting that more than 40,000 new aircraft will be needed by 2037 and of that, 16,000 aircraft are to be delivered to the Asia-Pacific region.
This will require a strong ecosystem support for aerospace manufacturing and MRO activities, said Leiking.
He said Airbus predicted that the value of the 35,000 planes, to be delivered worldwide over the next 20 years, will be around US$5 trillion.
Boeing predicts that the value of the 41,000 planes, which will be delivered worldwide in the same period, will be US$5 trillion, while the demand for services to support this fleet will be worth around US$8.5 trillion.
Of the total, 4,000 aircraft are to be delivered to Southeast Asia by 2037.
A spokesman for Airbus in Blagnac Cedex, France, said Malaysia was one of the aerospace and aviation giant’s largest markets in Asia.
“We have also built a strong industrial presence in the country.
“Malaysia is our largest supplier base in Southeast Asia with ‘Made in Malaysia’ parts fitted on the entire Airbus civil aircraft product line, as well the A400M military airlifter and the H130 helicopter,” said the spokesman.
The spokesman said in the services sector, Airbus had a thriving MRO business, with Sepang Aircraft Engineering providing aircraft maintenance services.
“We also operate a customer service centre offering specialised aircraft modification and design services, as well as a major helicopter facility.
“Altogether, our sourcing and service businesses in Malaysia are worth RM2.1 billion per year for the economy.
“And we have more than 4,000 people working under us in Malaysia.
“We are committed to growing our presence in the country and are in discussions with various parties,” the spokesman told the New Straits Times.