SUBANG: Malaysia’s aerospace manufacturing exports is projected to grow 15 per cent to RM9.75 billion this year from RM8.48 billion registered last year.
International Trade and Industry Minister Datuk Darell Leiking said the country’s aerospace manufacturing sub-sector growth trajectory would be supported by the continued orders of aircraft components and additional new products for aircraft sets.
"The sector is set to strengthen its position as the regional leader in producing world class aerospace products to global original equipment manufacturers (OEMs) including Airbus and Boeing.
“We welcome global suppliers to set up facilities in the country and hopeful existing players continue to expand its operations, increase capacities and ramp up production of aero-structures products,” he said after touring Spirit AeroSystems Malaysia Sdn Bhd facility here today.
Leiking said the aerospace manufacturing sub-sector currently contributes about RM6.97 billion equivalent to 48 per cent of the total Malaysia aerospace industry revenue.
“The government will continue to support Malaysian aerospace industry ecosystem. Under the 12th Malaysia Plan (12MP), a specific strategy is currently being formulated by Aerospace Technical Working Group led by the Ministry of Economic Affairs (MEA).
“The National Aerospace Industry Coordinating Office (NAICO) will also be working with MEA in developing the right strategies and effective action plans to be implemented under 12MP,” he added.
Leiking said the government has identified new potential projects to be implemented in the next few years during the Malaysian delegation to the International Paris Airshow 2019 last month.
“These projects are not limited to aerospace manufacturing and MRO (maintenance, repair & overhaul) but also in non-traditional area such as Space Economy 4.0.
“Based on the findings we will be implementing more aggressive approach in developing the right eco-system in Malaysia,” he said.
Spirit AeroSystems Malaysia operations senior director Datuk Zulkarnain Mohamed said the company expects to record a 10 per cent increase in revenue from an average of RM1 billion recorded last year.
He said the growth projection would be backed by strong orders aircraft parts and components from aircraft manufacturers Airbus and Boeing, which will give earnings visibility in 10 years.
With over 1,000 local staff, Spirit AeroSystems Malaysia produces wings components for the Airbus A350 and A320 as well as Boeing B787, while assembles doors for the B737 Max.
He said the company would not be affected by the global suspension of the B737 Max as it has already signed a contact to deliver the aircraft parts.
“We make the B737 Max parts in accordance to the agreement we have with Boeing. We maintain the production rate about 10 units aircraft set for the B737 Max monthly,” he said.
As the tier one supplier for Airbus and Boeing, Spirit AeroSystems Malaysia produces 65 aircraft sets for the A320, 10 sets for the A350 and 14 sets for the B787 on a monthly basis.
The Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Azman Mahmud who was also present said the agency is in talks with tier one and tier two aircraft suppliers based in the United States and Europe to set up their operations in Malaysia.
He said 11 aerospace projects with total investments of RM816.3 million were approved in 2018, of which 41 per cent were foreign investments.
It was also expected the new aerospace investments projects to generate a total of 2,442 employment opportunities.
Other prominent global aerospace players who have invested in Malaysia include Airbus, Boeing & Hexcel, GE, Safran, Leonardo, Honeywell, Singapore Aerospace Manufacturing (SAM), Collins Aerospace, Senior Aerospace and GKN Aerospace.
Head of NAICO Shamsul Kamar Abu Samah said Malaysia would continue to adopt the Fourth Industry 4.0 on automation technology to reduce operational cost, while building human capital development for the aerospace sector.
“Malaysia will not only focus on producing aerospace parts and components but also explore the possibilities of becoming raw material supplier.
“Research & Technology (R&T) and implementation of Industry 4.0 will be another focus by Ministry of International Trade and Industry in an effort to increase Malaysia’s competitiveness at global level,” he said.