The aerospace industry has been designated by the Government as a strategic sector with high growth potential in the country’s industrialisation and technological development programmes. Globally, aircraft production is expected to reach 41,030 units and valued at USD 6.1 trillion (excluding regional jets) over the next 20 years.
Malaysia is at the forefront of several markets, including composites design and manufacturing; aircraft components design and manufacturing, avionics and systems design and manufacturing. Currently, there are 8 companies involved in aircraft assembly, 28 companies in the manufacture of aircraft parts and components including ground support equipment, while more than 50 companies are involved in MRO activities. Due to the country’s conducive business environment, international players such as GE Engine Services Malaysia, Airbus, Spirit AeroSystems, Safran, Aerospace Composite Malaysia and Honeywell Aerospace Services have made Malaysia their ground for business operation. The local companies have also made great strides in the aerospace arena. Among the promenent local companies are SME Aerospace, CTRM Aero Composite, Sepang Aircraft Engineering, Airod and Malaysian Aerospace Engineering.
In view of the huge potential in this industry, the Malaysian Aerospace Industry Blueprint 2030 was launched during Langkawi International Maritime & Aerospace Exhibition (LIMA) 2015 in Langkawi, Kedah. This blueprint charts the long term plan for the development of the aerospace industry in Malaysia until 2030. The target is to make Malaysia the leading aerospace nation in South East Asia and be an integral part of the global market by 2030. To further encourage growth and development in this field, Malaysia offers attractive tax incentives to companies undertaking activities covering maintenance, repair and overhaul (MRO), manufacturing and system integration for the aerospace industry.
Source: Malaysian Investment Development Authority (MIDA)