Aerospace sector to rake in RM55b in revenue by 2030

PETALING JAYA: The Malaysian Investment Development Authority (Mida) which is collaborating with Malaysia Airports Holdings Bhd (MAHB) to promote and facilitate economic activities to drive investments into the country, projects the aerospace sector to rake in some RM55.2 billion in revenue by 2030.

Speaking to reporters on Friday at the inking of a memorandum of understanding between the two parties, Mida deputy CEO Datuk N. Rajendran said the maintenance, repair and operations (MRO) segment is expected to contribute some RM20.4 billion, while aero-manufacturing and engineering and design services are expected to contribute RM21.2 billion and RM13.6 billion respectively.

This, he said, will cater to aviation players in this region.

Malaysia is home to more than 200 companies involved in MRO, aeromanufacturing, education and training, systems integration and engineering and design activities. For the first three months of 2018, the aerospace industry registered approved investments of RM175.4 million for four manufacturing projects and RM8.59 million from one MRO project.

The two parties have collaborated to explore the potential to promote and facilitate economic activities to drive investments into the country, through the KLIA Aeropolis and Subang Aerotech Park, the latter of which will be part of the Subang Airport Regeneration Initiative.

Mida will facilitate the entry of Tier 1 and Tier 2 companies which are well positioned in terms of automation and digitisation – from the manufacturing, research and development, logistics and warehousing and distribution segments – to operate here.

Malaysia’s first airport city, KLIA Aeropolis, which spans 100 acres of land, will focusing on three areas, namely air cargo and logistics, aerospace and aviation, as well as meetings, incentives, conferences and exhibitions and leisure.

The catalytic project under the air cargo and logistics cluster will be the development of a regional e-commerce and logistics hub by MAHB and Alibaba Group’s logistic arm Cainiao Smart Logistics Network (Hong Kong) Ltd on 60 acres as part of the Digital Free Trade Zone.

Subang Aerotech Park will serve as a hub for business aviation equipped with a complete aerospace ecosystem and is expected to see mature operations in 2025.