INGENIEUR
Malaysian Aerospace
Industry – The Way Forward
By Dato’ Ir. Dr Che Hassandi Abdullah
The Minister of Economic Affairs Datuk Seri
Mohamed Azmin Ali mentioned recently that the
aerospace industry will be given high priority
under the 12 th Malaysia Plan (2021-2025). A
special Technical Working Group (TWG) will be
formed to develop a five-year strategic plan for
the industry. He is also confident that the goals
set under the Malaysian Aerospace Industry
Blueprint 2030 aiming to generate an annual
aerospace revenue of RM55.2 billion and create
over 32,000 high income jobs in the country by
2030 will be met. The aerospace industry is set
to generate RM16 billion in 2019 (The Edge,
2019). According to Boeing Market Research
(BMO, 2019), the aerospace and defence
market is valued at USD8.7 trillion through
2028. This article looks at the global aerospace
and defence industry, and the current Malaysian
aerospace industry. It also looks at some areas
where the Malaysian aerospace industry can
benefit from global trends in the aerospace and
defence industry.
A
erospace is defined as a branch of the
technology industry concerned with both
aviation and space flight. The aerospace
industry constitutes all the activities relating to
the development, production, maintenance and
support of aircraft and spacecraft. It includes
engines, systems, aerostructures, sub-tier
suppliers, missiles, unmanned aerial vehicle
manufacturing, airborne defence electronics,
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aircraft simulators, and maintenance, repair
and overhaul (MRO), including spare parts and
materials. Excluded are airline operations,
satellite broadcasting services, ground and
maritime vehicles, non-aero command, control,
communications, computers, intelligence,
surveillance and reconnaissance defence
electronics. However, according to Richard
Aboulafia, analysis Vice President of the Teal
Group, aerospace is one of the world’s most
important industries, yet there is no consensus on
its size and composition (Aerodynamic Advisory
and Teal Group Corp, 2018).
There are two components of aerospace:
commercial and military. That is the reason why
most reports on the aerospace industry include
defence in the title e.g. Aerospace and Defence
(A&D). The reason being that both aerospace and
defence have many overlapping technologies in
terms of manufactured products and research
and technology (R&T). Satellites, for example, are
used for both commercial and military purposes.
Although their functions and specifications may
differ, the basic concepts and systems are the
same, with add-ons to suit specifications for
their use and purpose. Advances in the military
or commercial industries will complement and
enhance one another.
The A&D Industry serves, as its name
represents, two main markets: aerospace, which
largely comprises the production, sale, and
service of commercial aircraft; and defence, which