Business

Aerospace industry to regain pre-pandemic revenue levels as early as 2022

This achievable if M’sia expands air cargo services, business aviation, MRO, says minister

Updated 5 years ago · Published on 22 Apr 2021 7:00PM

Aerospace industry to regain pre-pandemic revenue levels as early as 2022
International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali says the local aerospace industry may rebound if it captures new work packages with a positive impact on the whole ecosystem via product localisation. – EPA pic, April 22, 2021

KUALA LUMPUR – The aerospace industry is expected to rebound and regain its pre-pandemic revenue levels as early as next year, said International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.

He said this is achievable if Malaysia continues to capture new work packages with a positive impact on the whole ecosystem through via localisation.

“The recovery will be expedited if the industry can expand its air cargo services, business aviation, maintenance, repair and overhaul (MRO), as well as professional training services.”

Azmin said the Covid-19 pandemic has taken a heavy toll on the country’s aerospace industry, with the overall revenue shrinking between 20% and 30% last year compared with the RM16.22 billion revenue in 2019.

He said commercial aviation is the most impacted sub-sector due to the closure of international borders and limitation of domestic travel, adding that both aerospace manufacturing and MRO businesses have been experiencing deferment of orders and heavy maintenance services.

“Most of the manufacturing and services activities of aerospace were halted, while some of the workers were laid off due to the worldwide travel restrictions, grounding commercial and business aircraft.

“As aircraft manufacturers temporarily revise production rates downwards to adapt to the new depleted market environment, I am pleased to note that there are those in the supply chain ecosystem that has taken advantage of the demand slowdown to reset their finances in new technology and capability development.”

Going forward, the minister urged the aerospace community to continue to adapt and be ready for whatever lies ahead. – Bernama, April 22, 2021

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