KUALA LUMPUR: The Malaysian aerospace industry is expected to rebound and regain pre-pandemic revenue levels as early as next year if the country can continue to capture new work packages with a positive impact on the whole ecosystem through product localisation.
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International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said the recovery would be expedited if the industry can further expand its air cargo services, business aviation, maintenance, repair and overhaul (MRO) as well as professional training services.
He said a total of RM15 million was allocated for the industry’s development programs covering the promotion of the Malaysian aerospace industry ecosystem, empowerment of the National Aerospace Centre of Excellence, competency enhancement through digital systems and Industry 4.0, and development of bio-based aerospace materials.
In the recently-announced Pemerkasa stimulus package, RM50 million had been allocated to further support the recovery of the aerospace and medical devices industries.
“Under this initiative, the National Aerospace Industry Coordinating Office (Naico) is identifying potential areas for Malaysia to bid and secure new work packages from the original equipment manufacturers (OEM), tier-1 companies and global service providers.
“This initiative offers matching grants to aerospace companies that successfully secure new contracts that will benefit the local supply chain as well as retain employment for skilled workforce,” Azmin said in his keynote address at the Airbus Malaysia Connect Webinar this morning.
He said since the implementation of key initiatives in the Malaysian Aerospace Industry Blueprint 2030, led by Naico under the ministry, the domestic aerospace industry had demonstrated steady growth in terms of revenue and export value.
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“The Covid-19 pandemic continues to weigh heavily on our national economy. Malaysia’s aerospace revenue shrank between 20 per cent and 30 per cent in 2020 compared to 2019’s revenue of RM16.22 billion.
“Despite that, we aspire to be a leading aerospace nation in the next 10 years where the industry is expected to generate an annual revenue of RM55.2 billion and create 32,000 jobs,” he said.
Azmin also noted that the Malaysia Aerospace Industry Association (MAIA) today comprising 74 members from the large multinational companies down to homegrown small and medium enterprises.
The companies were embarking on digitisation and automation transformations in line with the expectations of OEM’s such as Airbus, he added.
Azmin commended domestic aerospace players for demonstrating resilience as well as resourcefulness in the face of adversity and manifold challenges of the past year.
“As we forge ahead to seize new opportunities, it is imperative that the government and the industry work together strategically to get this key economic sector flying high again, and soar to new levels of achievement and excellence,” he said.-NST