Figure 2: The number of institutions involved in the aerospace industry has dramatically
increased from 1997 to 2015 (Source: MiGHT, 2015).
Industry initiative. SME Aerospace undertook
the task of the integration and final assembly of
the MD3 Aero Tiga and marketing the aircraft.
Thus began the initial phase of the aerospace
manufacturing industry in Malaysia.
The first National Aerospace Industry Blueprint
inaugurated in 1997 provided Malaysia with a
platform to launch its initial aerospace industry
programmes. Through the continuous effort of
multiple players and stakeholders, the industry
has achieved a significant percentage of what was
laid down in the blueprint. Along with the rapidly
growing world’s aerospace and defence industry,
the industry managed to expand and grow into
more complex and sophisticated activities. We
should focus and invest more in technology related
activities and the application of sciences in the
industry, instead of just on revenue generating
activities, even though in the early stage, the focus
was on maintenance, repair and overhaul (MRO)
of aircrafts for the domestic market. Since then,
the aerospace industry has grown by leaps and
bounds and the national aerospace industry has
ventured into aerospace manufacturing, avionics
and systems integration, engineering and design
services, and aerospace training and education.
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 2014, there were
159 aerospace companies in the country. Over
the next three years, the number ballooned to
200 companies. Figure 2 shows a graphic of
the institutions/companies in 1997 and the
institutions/companies operating in 2015. The
outlook for the aerospace industry is very bright
not only for Malaysia but across the world, with
rising wealth and the advent of discount airlines
that have made air travel extremely popular. At
the same time, the boom in electronic and mobile
commerce has increased air-freight volumes
as consumers order goods across borders,
demanding speedy delivery (MIDA, 2018).
Figure 3 shows the focus areas of the
aerospace industry presented by the Malaysian
Industry – Government Group for High Technology
(MiGHT) in 2015. The industry generated a total
revenue of RM14.4 billion in 2018, up 6.7% from
RM13.5 billion in 2017, according to the Ministry
of International Trade and Industry (MITI). The
MITI Minister, Datuk Darell Leiking was quoted
by Bernama saying that the Government aims to
generate up to RM16 billion in revenue from the
aerospace industry this year (2019). 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, totalling RM55.2 billion.
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