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Aerospace industry to generate RM30 billion revenue by 2025

Aerospace industry to generate RM30 billion revenue by 2025

27 Sep 2021

The aerospace industry has been identified as one of the strategic industries under the 12th Malaysia Plan (12MP) to propel the country into the high technology trajectory, generating RM30 billion revenue by 2025 from RM11.6 billion in 2020.

According to the 12MP document released by the Economic Planning Unit (EPU) today, the industry, which is projected to create 30,000 jobs over the next five years, would be transformed to produce more complex products and services.

“The initiatives will include developing a sustainable ecosystem, clustering and zoning of aerospace activities, establishing an aerospace digital system and venturing into sustainable energy.

“These initiatives will improve industry capability and competitiveness, thus strengthening its position in the global value chain,” the document said.

To develop a sustainable aerospace ecosystem, it said the National Aerospace Industry Coordinating Office (NAICO) would be upgraded as an agency to enhance its role in facilitating the implementation of initiatives and action plans under the Malaysia Aerospace Industry Blueprint (MAIB) 2030.

It said the upgrading of NAICO would also strengthen its role in coordinating the implementation of the newly introduced Aerospace Industry Framework, which laid out the industry’s overall targets as well as strategies and desired outcomes for each cluster to achieve MAIB 2030 objectives.

“A centre of excellence for aerospace will also be set up to provide training and share best practices and facilities, especially for the micro, small and medium enterprises to enhance industry competitiveness and position Malaysia as the regional aerospace hub in Southeast Asia,” it said.

Under the 12MP, it said the capabilities of aeronautics and astronautics facilities would be improved and current infrastructure would be used optimally while local expertise would be enhanced to strengthen the aerospace industry.

It said efforts would also be undertaken to create a new source of growth through strategic cooperation between the government and local players involved in the aerospace industry.

“Incentives and financial assistance will be enhanced for the industry to remain competitive in the global value chain and promote sustainable growth.

“This is particularly critical as global markets, including Malaysia, respond to and recover from the economic and social implications of the Covid-19 pandemic,” it said.

The document said incentives would also be reviewed to accelerate research and development, innovation and high value-added investments.

Meanwhile, it said loan and loan guarantees for businesses would be explored to enhance the industry access to liquidity in compensating for reduced cash flow due to the impact of the pandemic.

It said the development of the aerospace industry would be realigned to create specialised capabilities through the clustering and zoning of aerospace activities in selected economic areas.

“The industry development will focus on four clusters, namely maintenance repair and overhaul, aerospace manufacturing, systems integration, and engineering and design services to create synergy and promote the growth of local players.

“The zoning and clustering of aerospace activities will be based on the inherent strengths of each economic area,” it said.

It added that the aerospace digital system would also be established as a central data repository for aircraft operations.

Source: Bernama

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