Malaysia banks on aerospace sector to attract foreign investments

NEW YORK: The Malaysia Investment Development Authority ( MIDA) is promoting the aerospace sector as a gamechanger to attract foreign direct investments and boost the country’s industrial image.

MIDA’s New York Director, Shams Rusli, said Boeing’s 2016- 2036 market outlook data revealed that global demand would grow to over 39,600 planes in the next 20 years, with a value of over US$ 5.93 trillion ( US$ 1 = RM4.43).

“Aerospace is a promising sector,” he said in an interview with Bernama.

He said the aerospace was seen as a strategic industry in Malaysia’s investment- promotion strategy, as it was in line with the country’s industrialisation and technological development programmes.

“The Malaysia International Aerospace Centre and the Asia Aerospace City, both located in Subang, are expected to further strengthen Malaysia’s image and propel it into the international aerospace arena.

“Malaysia’s specialised industry parks, which cater to technology intensive industry and research and development activities, such as the Technology Park Malaysia in Bukit Jalil, Kuala Lumpur and the Kulim Hi-Tech Park in Kedah, can provide the crucial support in promoting aerospace-related activities,” he said.

Additionally, he said, Malaysia’s free trade agreements could be seen as a ‘hidden tax incentive’, in that they provide wider and bigger market coverage.

Currently, Malaysia has bilateral trade agreements with Australia, Chile, Japan, India, Pakistan, New Zealand, Turkey, China, South Korea, Japan and India, he said.

On the current uncertainties with regards to US companies’ foreign investments given President Donald Trump’s ‘ America First’ slogan that encouraged US firms to create jobs at home, Shams said, Malaysia’s efforts to attract investors would not affect American jobs.

Instead, he said, US companies could leverage on Malaysia’s economic and political stability, great facilities and infrastructure, as well as its strength in the financial and manufacturing sector to penetrate the lucrative Asia-Pacific region.

“As a profit centre in Asia, Malaysia is a good place to start for US companies wanting to tap the lucrative Asia-Pacific markets,” he said. — Bernama