Malaysian Investment Development Authority

Date : 12 Aug 2019, 10:37 PM

www.mida.gov.my

Aerospace
The Government has identified Malaysia’s aerospace industry as one of the ‘3+2’ strategic sectors
with high growth potential. In recognition of its importance, 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.

Malaysia is currently home to more than 200 aerospace companies comprising both international
and local industry players. These include 66 companies involved in MRO activities, 33 companies in
aero-manufacturing, 25 companies in education and training, and 11 companies in systems
integration, as well as engineering and design.

In demonstrating their capabilities to meet global OEMs’ stringent demands, local players like SME
Aerospace, CTRM Aero Composite, Airod, and UMW Aerospace, have successfully involved
themselves in the global aerospace supply chain. By 2030, the industry is projected to contribute
revenues of RM20.4 billion for MRO, RM21.2 billion for aero-manufacturing, and RM13.6 billion for
engineering and design services.

Recognising the need to develop talent for the aerospace industry, the Department of Skills
Development (DSD) has jointly established an occupational framework with Ministry of International
Trade and Industry's (MITI) National Aerospace Industry Coordinating Office (NAICO). The framework
serves as a reference of the standards required for skills certification, and to guide skills training
curriculum development so that it is in line with industry requirements.

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.

Within the aerospace industry, surface engineering is among the areas that have much potential to
enable Malaysia’s transformation towards churning out complex and diverse products. Surface
engineering processes are overseen by the National Aerospace and Defense Contractors
Accreditation Program (NADCAP), administered by the USA-based Performance Review Institute
(PRI). Through PRI, NADCAP provides independent certification of manufacturing processes for the
industry, and represents a standardised approach to quality assurance. While Malaysia already has
companies that are able to offer NADCAP-certified coating and specialty secondary processes, there
is still much room for growth.

SEA’s dynamic regional aerospace market is gaining prominence, due in large part to facilities such
as Singapore’s Seletar Aerospace Park, and Malaysia's dedicated aerospace parks such as UMW High
Value Manufacturing Park. Strong market demand has also accelerated the development of local
aerospace supply chains. Malaysia is equipped with all the necessary ingredients to be an important
player in the global aerospace market, and efforts undertaken to develop local clusters and other
facilities that foster the growth of the aerospace industry, such as the KLIA Aeropolis, are likely to
pay off in due course.

Aerospace products made in Malaysia

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 Malaysian Investment Development Authority
Date : 12 Aug 2019, 10:37 PM
www.mida.gov.my

For further information, please explore the following links:

1. Malaysia the Aerospace Hub

2. Success Story in Malaysia’s Aerospace Industry: Strand Aerospace

3. Success Story in Malaysia’s Aerospace Industry: Upeca Aerotech

4. Success Story in Malaysia’s Aerospace Industry: Sepang Aircraft Engineering

5. Success Story in Malaysia’s Aerospace Industry: Romstar

6. Examples of companies in the Aerospace Industry: Honeywell

7. Featured Articles: The Economist

8. MIDA E-Newsletter: February 2018

9. MIDA E-Newsletter: March 2016

10. Staff Directory: Transportation Technology Division

11. Purchase the Investment Performance Report 2017

12. Forms & Guidelines

Website URL : http://www.mida.gov.my/home/aerospace/posts/?lg=EN

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