Malaysia Soars Above And Beyond To Accelerate The Growth Of The Aerospace Sector In SEA

Returning to the prestigious Paris Airshow, Malaysia invites stakeholders to explore collaborations in areas such as product sourcing, OEM outsourcing, R&D for commercialisation, capacity building, and other mutually beneficial initiatives.

The Malaysia Pavilion, located at Hall 3, E93, is spearheaded by the Malaysian Ministry of Investment, Trade and Industry through its agencies, the Malaysia External Trade Development Corporation (MATRADE) and the National Aerospace Industry Corporation Malaysia (NAICO). The Malaysia Pavilion showcases the country's expertise in Maintenance, Repair and Overhaul (MRO), Aero-Manufacturing, System Integration, and Education and Training.

Malaysia’s Trade Commissioner, Ms. Zuhaila Sedek shares that Malaysia welcomes discussions with global industry players on partnerships that can build readiness in the areas of sustainability, innovation, and advanced manufacturing technologies, as well as joint efforts to maintain the stability of the global supply chain.

"The Paris Airshow holds significant importance for Malaysia as it presents an opportunity to highlight the growth and transformation of Malaysia’s aerospace industry in the post-pandemic era. We welcome discussions with not only leading Tier 1 or 2 corporations but also Tier 3 and 4 corporations, so we could diversify our collaboration in multiple segments. This is even more pertinent given various economic challenges resulting from geopolitical issues, inflation, and the energy crisis," Ms. Sedek shared.

The Malaysian aerospace sector plays a vital role in driving Malaysia's advancement in innovation and technology. It is a key focus area outlined in the 12th Malaysia Plan and the Malaysian Aerospace Blueprint 2030. With a well-established industry and strong capabilities in aircraft assembly and maintenance, Malaysia boasts one of the largest aerospace sectors in Southeast Asia, supported by a skilled workforce.

"In fact, Malaysia produced around 54% of skilled workers in this industry for the Southeast Asia region. Malaysia is also at the forefront of several markets particularly in areas namely aero-composites manufacturing as well as aircraft components design and manufacturing. Currently, we have around 240 companies driving the growth of this high-value industry. In terms of trade performance, France, the United States, the United Kingdom, China, and Singapore were Malaysia's major trade destinations in 2022," Ms. Sedek added.

Looking ahead, Malaysia aspires to become the leading aerospace nation in Southeast Asia, fully integrated into the global market. The Malaysian government projects an annual revenue of EURO11.69 billion and the creation of over 32,000 high-income jobs by 2030, for the aerospace industry.

The aerospace industry is witnessing a positive surge as international borders and economies are fully open, after a hiatus of almost two years. Furthermore, climate change and other environmental degradation have propelled global industries to look for sustainable alternatives across all segments within the industry.

In the aerospace industry, there is a growing demand for environmentally-friendly aircrafts, engines, fuel and technology. These trends are extremely encouraging for Malaysia and sustainable aerospace industry is an area that Malaysia and other countries can explore collaboratively.

"The rapid development of new environmentally-friendly aircraft means there will be more retrofitting requirements, which also means there is a pressing need to create more sustainable solutions (in design, materials etc) to reduce fuel emissions while at the same time enhancing efficiency. Perhaps, it is time to look to Malaysia in exploring joint ventures in addressing these concerns," Ms. Sedek shared.

Joining forces with MATRADE and NAICO, are the Malaysian Investment Development Authority, Invest Selangor Berhad, Iskandar Regional Development Authority and Pahang State Secretary Incorporated which will be sharing Malaysia’s strength as an aerospace investment hub.

The aerospace industry in Malaysia has transformed from a small and domestically focused sector to a globally recognised one. Currently, aerospace is a high-value industry in Malaysia, generating an annual revenue of EUR2.46 billion. Malaysia’s aerospace industry is well-established and this is attributed to, among others, Malaysia’s strategic location at the crossroads of important international air trade routes, excellent infrastructure as well as a skilled workforce with strong capabilities in aircraft assembly and maintenance.

The Malaysian government has recently launched Malaysia Aerospace Centre of Excellence (MyAERO Centre) that will identify and nurture home-grown SMEs that have the potential to be part of the global supply chain, further strengthening the aerospace supply chain stability. MyAERO will also be a conduit for various initiatives to drive the capabilities of Malaysian industry players.

Due to Malaysia’s burgeoning ecosystem, the country, also one of the founding fathers of ASEAN, has attracted a number of major international players that have set their bases in Malaysia namely GE Engine Services Malaysia; Airbus Malaysia; Spirit AeroSystems; Safran Malaysia; Aerospace Composite Malaysia; and Honeywell Aerospace Services.

To get connected with Malaysian industry players email [email protected] or [email protected].

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For more information, please contact:

Zuhaila Sedek, Trade Commissioner

Malaysia External Trade Development Corporation (MATRADE)

Tel (Direct): +49 69 247 5015 10

Email: [email protected]

About MATRADE

The Malaysia External Trade Development Corporation (MATRADE) was established on March 1, 1993 as the external trade promotion arm of Malaysia's Ministry of International Trade and Industry (MITI). Its functions are:

• To promote, assist and develop Malaysia's external trade with particular emphasis on the export of manufactured and semi-manufactured products and services;
• To formulate and implement export marketing strategies and trade promotion activities to promote Malaysia's export;
• To undertake commercial intelligence and market research and create a comprehensive database of information for the improvement and development of Malaysia's trade;
• To organise training programmes to improve the international marketing skills of Malaysian exporters;
• To enhance and protect Malaysia's international trade investment abroad; and
• To promote, facilitate and assist in the services areas related to trade.
• URL: www.matrade.gov.my