Transportation Technology – Aerospace

In alignment with the National Aerospace Industry Blueprint 2030, investment facilitation efforts have focused on advanced aerostructures, engine component manufacturing, and the digital transformation of MRO services, ensuring Malaysia remains a preferred destination for aerospace investments. The expansion of the Subang Aerotech Park and the continued development of aerospace clusters in Selangor, Johor, and Penang reflect ongoing efforts to strengthen Malaysia’s position as a regional aerospace hub. With air traffic recovery driving demand for aircraft production and maintenance, Malaysia’s strategic initiatives are well-positioned to capitalize on the projected USD 3 trillion global aerospace market by 2035.

As the lead agency for promotional industrial development, Malaysia’s investment strategies in aerospace have been shaped by policies that encourage high-value manufacturing, MRO, and technology-driven innovations. For the year 2024 alone, the aerospace sector attracted RM1.5 billion in approved investments, with foreign direct investments (FDI) accounting for a significant portion of this growth. Notable global aerospace manufacturers and MRO players such as Boeing and Safran, have expanded their presence in Malaysia, leveraging the country’s skilled workforce and established ecosystem.

The Malaysian Investment Development Authority (MIDA) has actively promoted aerospace investment through participation in domestic and international exhibitions, collaborating with organisations like NAICO and MATRADE. Events like the Malaysia Aerospace Summit 2024, Singapore Airshow 2024, MRO Asia Pacific 2024, Farnborough Airshow 2024, and Selangor Aviation Show 2024 have been instrumental. MIDA also facilitated a supply chain programme for Turkish Aerospace Industries (TUSAS), a prominent Tier 1 aerospace supplier, to integrate local companies into its global supply chain.

Malaysia’s aerospace industry continues to strengthen its position as a key player in the global supply chain, driven by advancements in manufacturing, Maintenance, Repair & Overhaul (MRO), and engineering services. The presence of global OEMs and Tier-1 suppliers has firmly established Malaysia as a preferred hub for aerostructures, engine components, avionics, and composite manufacturing, reinforcing its role in high-value aerospace production. As demand from Tier-1 companies continues to rise, Malaysia’s supply chain capabilities are expected to expand and deepen, further enhancing the industry’s global competitiveness. According to Airbus’ latest Global Market Forecast, the next 20 years will see approximately 42,430 new aircraft deliveries worldwide, presenting significant opportunities for Malaysia’s aerospace sector to capture greater value within the international supply network.

The MRO sector, a critical pillar of Malaysia’s aerospace landscape, has witnessed steady growth as the country positions itself as a regional center for aircraft maintenance and aftermarket services. Increasing fleet expansion and the post-pandemic recovery of air travel have further accelerated demand for MRO services, prompting investments in new capabilities such as advanced diagnostics, predictive maintenance, and digitalized MRO solutions to enhance operational efficiency.

Sustainability and technological innovation are shaping the future of Malaysia’s aerospace industry. Companies are increasingly adopting green manufacturing practices and exploring the use of sustainable aviation fuels (SAFs) as part of the sector’s long-term commitment to environmental responsibility. The integration of Industry 4.0 technologies, including automation, robotics, and smart manufacturing solutions, is further enhancing productivity and reducing production costs, positioning Malaysia as a competitive hub for aerospace innovation.

With strong government backing, industry collaboration, and continuous investments in research and development, Malaysia’s aerospace sector is poised for sustained growth. Strategic initiatives under the National Aerospace Industry Blueprint 2030 continue to drive the country’s ambition to be a global aerospace hub, ensuring long-term competitiveness in the manufacturing and MRO sectors. As the industry evolves, Malaysia remains committed to strengthening its capabilities, attracting high-value investments, and fostering a robust ecosystem that supports the needs of the global aerospace market.