SMEs must be brave to tap into aerospace sector - MIDA | Malaysian Investment Development Authority
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SMEs must be brave to tap into aerospace sector

SMEs must be brave to tap into aerospace sector

26 Apr 2021

Small and medium enterprises (SMEs) must be brave enough to tap into the aerospace industry — a high value sector which can give high yields to small corporations, said Minister of Entrepreneur Development and Cooperatives (Medac) Datuk Seri Dr Wan Junaidi Tuanku Jaafar.

Wan Junaidi said the involvement of SMEs in the aerospace supply chain components is important, as there is a huge investment by the global aerospace manufacturer firms in the country, such as Spirit AeroSystems, Senior UPECA and Composites Technology Research Malaysia Sdn Bhd.

In 2019, Malaysia attracted a total of RM16.22 billion of investment from the industry.

As such, there is a huge potential that can be explored by the SMEs, which contributes more than 95% to the national economy.

“This sector can help SMEs be the backbone of the national economy.

“It is in line with the new direction of the country to use high technology and intelligence to move the country forward,” he said in his opening speech officiating Kaizan Aero Manufacturing Sdn Bhd (KAMSB) in Puchong, Selangor, yesterday.

Based on the Malaysia Aerospace Industry Blueprint 2030, the government aims to generate a total of RM55.2 billion and create more than 32,000 high-skilled jobs, from about 25,000 existing.

“I believe there is still huge potential in this sector where SMEs can play a big role. They must be brave,” said Wan Junaidi.

To achieve this, Wan Junaidi said the government, through SME Corp Malaysia, has come out with a High Performance SME Improvement Programme (Prestige). Prestige aims to help the SMEs with three strategic objectives; which is to add more SMEs with high value and innovation in the aerospace sector, to uplift the productivity and quality product of SMEs and to expand the involvement of SMEs in the aerospace supply chain worldwide.

As of now, 30 companies have followed the programme since 2017. This programme could give a positive impact to the industry, with accumulative sales generated by the SMEs in this programme has reached RM69.9 million in 2019 with compound annual growth rate of 23.9%.

This year, Wan Junaidi said SME Corp aims to invest in 10 more corporations via the programme.

As of now, there are 84 companies that are doing businesses related to the aerospace sector from design, manufacturing to services, according to SME Corp.

It is estimated that there are 230 aerospace companies in Malaysia as of 2018.

At the event, Wan Junaidi announced that KAMSB has received a total of RM497,600 of financial aid through Prestige.

Through the aid, the firm, which produces galley refrigeration systems and tubing fabrication for Boeing Co, will now be capable of doubling its output compared to when it started three years ago.

KASMB was selected to join the Prestige programme in 2019.

KAMSB MD Lee Jack Son said through the initiative, the company has managed to obtain the certificate of NADCAP and AS9100 Revision D — the certificate of management quality system that follows the international standard.

Through the certificate, he said the company has been able to increase its productivity rate with technology adoption, raising its capacity output by more than 120% on average while employing semi- and high-skilled jobs for the locals.  

Source: The Malaysian