MITI to facilitate rebuilding of the Malaysian aerospace industry - MIDA | Malaysian Investment Development Authority
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MITI to facilitate rebuilding of the Malaysian aerospace industry

MITI to facilitate rebuilding of the Malaysian aerospace industry

19 Mar 2021

The Ministry of International Trade and Industry (Miti) will continue to assist the local aerospace industry players to expand their competencies through the introduction of advanced technologies and digital transformation in line with the Malaysian Aerospace Industry Blueprint 2030.

Deputy Miti Minister Datuk Lim Ban Hong said a structured development programme will be developed by the National Aerospace Industry Coordinating Office (Naico) as the National Aerospace Centre of Excellence emphasising the advancement of local ecosystem, Industry 4.0 implementation and development of next generation aerospace professionals.

“This initiative is expected to strengthen local aerospace supply chains and improve their cost structure as well as sustaining their competitiveness at the global level,” he said in a statement today.

Lim said the RM50 million allocation announced under the Strategic Programme to Empower the People and Economy (Pemerkasa) will further support the recovery of the aerospace industry as well as being jointly utilised for medical devices.

“Under this initiative, Naico is identifying potential areas for Malaysia to bid and secure new work packages from the original equipment manufacturers (OEMs), Tier-1 companies and global service providers.

“This initiative offers matching grant to aerospace companies that successfully secure new contracts or work packages that can be localised by the local supply chain as well as to retain employment for skilled workforce,” he added.

Therefore, Miti encourages the Tier-1 and Tier-2 companies to work hand-in-hand with their global suppliers and encourage their foreign suppliers to consider investing in Malaysia by establishing a subsidiary or through a joint venture with a Malaysian partner.

“Miti and its agencies will facilitate such efforts by providing attractive incentive packages including assistance on research and development projects and human capital development,” said Lim.

In 2019, the Malaysian aerospace industry secured RM16.2 billion revenue with 27,500 highly skilled workers serving the industry.

This positive development was due to the increased number of activities in the maintenance, repair and overhaul business, with 49 per cent market share, while the manufacturing segment (aerostructure and engine components) accounts for 47 per cent of market share.

“Globally, Malaysia has been touted as a nation that produces high-quality aerospace products for global aerospace leaders such as Airbus, Boeing, Rolls-Royce, Safran, Honeywell and Thales,” said Lim.

Source: Bernama