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Transportation Technology – Aerospace

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.

RM16.44 bil

Total Approved Investments in 2020

RM16.2 bil

Total Revenue by 2019

27,500

Job Opportunities as at 2019

RM7.10 bil

Export performance in 2020

Human Capital Development

To support skilled workforce for the aerospace requirements, local training institutions have embarked on several aerospace-related training activities. This includes the Advanced Composite Training Centre (ACTC) at UniKL – Malaysia Institute of Aviation Technology, Malaysian Aviation Training Academy, Advanced Aeronautics Technology Centre and Aero Precision Resources.

 

Malaysia has more than 30 institutions that offers aviation- related course such as Universiti Putra Malaysia, Universiti Science Malaysia, UniKL, International Islamic University Malaysia, University Tun Hussein Onn Malaysia and University Technology Malaysia.

 

Besides human capital development efforts, Malaysia also offers a comprehensive infrastructure for the industry. At present, Malaysia has several aerospace parks namely, Subang Aerotech Park, KLIA Aeropolis, UMW High-Value Manufacturing Park, Senai Airport Aviation Park, Nusajaya Tech Park and Kulim Hi-Tech Park that provides the choice of ready-built facilities or land plots for customised developments.

50%

of Wing Part for Boeing B737 manufactured by ACM, Kedah

60%

of Wing Part of Airbus A320 produced by CTRM, Melaka

Sub-sector

Aerospace Manufacturing

Engineering & Design

Aero-structure

Avionics

Engines

Airframe Equipment

Sub-sector

Maintenance, Repair and Overhaul (MRO)

Airframe

Engines

Component

Line Maintenance

Major Aerospace Companies

Spirit AeroSystems Inc., USA

Safran S.A., France

Boeing & Hexcel Co., USA

Airbus SAS, France

Hamilton Sundstrand
(a subsidiary of Collin aerospace)

SR Technics, Zurich

Lufthansa & MTU Maintenance, Germany

General Electronic, USA

Honeywell Aerospace Services, USA

GKN Aerospace, UK

Barnes Aerospace , USA

Our Investors' Highlights

UMW Aerospace Sdn. Bhd., a wholly-owned company of the UMW Holding, rolled out its maiden fan case for Rolls-Royce Trent 1000 engines in November 2017. The engine fan casing, being one of the largest and most complex parts of the engine to manufacture, will bring along many spill-over effects. UMW Aerospace is the Tier 1 supplier for Rolls Royce to manufacture aircraft parts in the region.

- UMW Aerospace

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Learn more about the essential forms and guidelines to help you get started on your journey in Malaysia’s manufacturing sector.
Company can submit application and track the application status online via MIDA InvestMalaysia portal at investmalaysia.mida.gov.my

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