Business

Aerospace investment value hits RM3.8 bil from 2017 until June 2021

40 projects approved with over 4,500 job opportunities created, says government

Updated 4 years ago · Published on 26 Oct 2021 7:15PM

Aerospace investment value hits RM3.8 bil from 2017 until June 2021
Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed says Malaysia is the second largest aerospace hub in Southeast Asia. – Bernama pic, October 26, 2021

KUALA LUMPUR – The government has approved 40 projects related to the aerospace industry with a total investment value of RM3.8 billion from 2017 until June 2021, which created 4,563 job opportunities.

Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed said these jobs were mostly highly skilled jobs taken up by Malaysian technicians and engineers, leading the way forward for high value and skilled employment in the country.

“Going forward, the government will continue to promote and facilitate high quality foreign direct investments into Malaysia,” he said during the keynote address at a virtual webinar titled ‘Bolstering Malaysia Aerospace Industry in the 12th Malaysia Plan (12MP)’ held today. 

As outlined in the National Investment Aspiration (NIA) framework, the focus would be on attracting high-quality investments, he added.

Mustapa also expressed confidence that the aerospace industry would continue to be a vibrant and thriving industry in Malaysia in the years to come although the Covid-19 pandemic has brought challenges to the nation.

He said that the trends showed the Asia Pacific region having the highest growth in new plane deliveries for the next decade, a testament to the region’s expanding economies.

The government views the private sector and academia as co-development partners. We have established a research management unit at the Economic Planning Unit (EPU) to coordinate research and development spending to ensure focused spending for tangible outcomes,” he said.

An increasing hard metal capability, as exemplified by UMW Aerospace and SAM Aerospace, both specialists in engine components manufacturing, shows the breadth of aerospace technology disciplines that Malaysia has mastered, the minister noted.

“The country is presently home to more than 230 aerospace-related companies supporting the Malaysian supply chain, generating RM16.2 billion in total revenue in 2019, making Malaysia the second largest aerospace hub in Southeast Asia,” he said.

Under the 12MP, the aerospace industry is anticipated to generate RM30 billion in revenue and more than 30,000 jobs by the end of 2025. 

Mustapa said strategies have been put in place through various initiatives such as developing a sustainable ecosystem, clustering, zoning of aerospace activities, and establishing an aerospace digital system as well as venturing into sustainable energy.

“We expect greater participation and collaboration from all stakeholders, particularly in the areas of talent development, strategies and programme execution as well as technology transfer and creation,” he said.

Moving forward, the minister is hoping for greater participation in the designing and building activities of aircraft programmes, a greater share of global aerospace manufacturing as well as maintenance, repair and overhaul (MRO) markets, and greater capabilities in avionics and systems integration. – Bernama, October 26, 2021

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