Tuesday, November 12

Aerospace industry to generate annual revenue

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KUALA LUMPUR: The aerospace industry is targeted to generate annual revenue of RM55.2 billion and create more than 32,000 high-income jobs by 2030, says the Malaysia External Trade Development Corporation (Matrade).

Transport and Logistics Section director, Yuslinawati Mohd Yusof said the Malaysian aerospace industry is seen as a strategic industry, with vast potential in the country’s industrialisation and technology development programmes.

“The Malaysian Aerospace Industry Blueprint 2030, launched in 2015, aims to make Malaysia a central aerospace hub in the Southeast Asian region and transform the country into a key global player by 2030,” she told Bernama at the recent Defence Services Asia 2018 (DSA 2018) exhibition.

Yuslinawati said in 2017, Malaysia’s aerospace products trade stood at RM22.67 billion and the country’s exports, mainly comprising aerospace parts and components, had increased by 53.4 per cent to RM8.49 billion compared to RM5.53 billion in 2016.

“Exports were mainly to Indonesia, Singapore, the United States (US) , the United Kingdom and China,” she added.

Meanwhile, Malaysia’s main import items were aircraft and parts, mostly from France, the US, the Netherlands, China and Singapore.

“The total revenue of Malaysia’s aerospace industry grew from RM900 million in 1998 to RM13.5 billion in 2017.

“There are about 230 companies in the aerospace industry, which created more than 23,000 jobs,” Yuslinawati said, adding, most of the companies were small and medium-sized enterprises.

She said there were huge opportunities in the manufacturing, maintenance, repair and overhaul (MRO) of aircraft parts, engines and components, assembly base for light aircraft and corporate planes, and other engineering services.

“The presence of international players in Malaysia, such as Airbus, General Electric (GE), Honeywell and Spirit Aerosystems, shows that Malaysia has a promising outlook in terms of strengthening its position and thus securing a bigger market share,” said Yuslinawati.

To ensure consistent growth for the aerospace industry, she said, the Ministry of International Trade and Industry, had identified several key initiatives to enable it to become a strong high-technology sector which supports the complete aero-systems life cycle, thus taking advantage of the rapidly growing air transportation industry.

One of the initiatives is the Kuala Lumpur International Aerospace Business Convention 2018 (KLIABC 2018) slated for October, and which is expected to see the participation of over 300 local and international companies.

Yuslinawati said KLIABC had an edge over other aerospace and MRO events in Southeast Asia due to its signature prearranged one-on-one meeting sessions.

“Through an outstanding business-to-business forum platform, KLIABC brings the right partners to the participants.

“During the three-day event, they will have the opportunity to meet, discuss and network with local and international contacts from the aerospace and the MRO supply chain. The programme will help decision makers in exploring and penetrating the market.

“The KLIABC also gives stakeholders real-time data and brings together leading industry experts to share insights on growth opportunities, cost reduction and management strategies that help maximise efficiency,” she added. — Bernama