Transportation Technology – Aerospace

Globally, the sector was adversely affected by the COVID-19 pandemic, with many suppliers facing closure due to OEMs such as Boeing and Airbus decreasing their aircraft production rates. Malaysian industry players have not been immune, being subjected to the same pressures and adopting many of the same measures. Many companies had made capital investments based on the increasing aircraft build rates prior to the pandemic. They faced real pressure to cut costs by managing their operational cash flow, while simultaneously working to retain skilled workers.

Nonetheless, prior to the pandemic, the Malaysian aerospace section was growing at an average of 5% over the past 10 years, churning out high-skilled jobs in important areas such as maintenance, repair and operation (MRO) activities. The sector remains a strategic growth area for Malaysia and is home to a vibrant mix of foreign and local industry players. There are about 230 companies, which are involved in maintenance, repair and overhaul (MRO), aero-manufacturing, education and training, systems integration, and engineering and design activities.

The local companies that are already part of the global supply chain include UMW Aerospace, SME Aerospace, CTRM Aero Composite Asia AeroTechnic and Airod. Malaysia also has supporting companies such as IAC Manufacturing, Asahi Aero Malaysia, Micron Concept Aerostructures and Morrissey Integrated Dynamics.

Malaysia continually aims to be the preferred global aerospace outsourcing centre and through MIDA with various efforts will continue to attract investment by OEM and Tier-1 companies through investment mission to targeted countries, industry linkage programmes, and supply chain programmes to be part of the global supply chain ecosystem in Malaysia.