Ingenieur Vol 80 ingenieur 2019 octoberfinal | Page 24

INGENIEUR engineering and automation utilising Industry 4.0 technologies seem to be good prospects to consider to bring new services and products to the customer. Already there are new emerging technologies and applications, such as drones and augmented- and virtual-reality based applications that can enhance and provide value to the aerospace engineering sector in various fields (refer Figure 6). Engineering Services in Malaysia T h e M al ay s i an Ae r o s p a c e In du s t r y i s considered by the Malaysian Government as one of the strategic industries that can have a big potential in shaping the country’s future industrialisation and technological development programmes 2 . One of the major initiatives by the Government is to fulfil the vision of the Aerospace Industry’s Blueprint, which is “to achieve no. 1 aerospace nation in South East Asia (SEA) and as an integral part of the global market by 2030”. As a part of this ambitious national goal, Engineering Services are considered one of the four main pillars of the aerospace sector and important steps to upscale the sector must be taken to ensure that the country becomes a competitive aerospace nation in world markets by 2030. The Malaysian Aerospace Industry Blueprint 2030 sets a vision for Malaysia to be the top aerospace nation in South East Asia and to become a part of the integral global market by the year 2030 with a projected annual revenue of RM55.2 billion while creating 32,000 high income jobs in the process 2 . According to the National Aerospace Industry Co-ordinating Office (NAICO), revenue for Malaysia’s aerospace sector rose 6.67% to RM14.4 billion recorded in 2018, from RM13.5 billion in 2017. The aerospace sector delivers long-term earnings visibility for local players, particularly in the supply chain network for the original equipment manufacturers (OEMs) including Airbus and Boeing. This is because the sector receives between RM500 million and RM800 million worth of investments annually from both foreign and local investors. Hence, there are ample opportunities to grow the aerospace supply chain network and engineering services is 6 22 VOL 2019 VOL 80 55 OCTOBER-DECEMBER JUNE 2013 one sector that will require increased investment in order to meet the market penetration expectations 2 . Why Engineering Services are a Key Component of the Local Aerospace Ecosystem Malaysia has a lot of potential to be the hub of the engineering services for the region, particularly in the aerospace manufacturing and aviation sector. Malaysian companies however need to expand their networks to leverage on their strength and experience in their engineering expertise. This can be achieved by studying the regional markets and diversifying their current local client portfolios to become a regional or even global player rather than being easily contented to service only their home market. Malaysia will need to produce more highly skilled engineers for both upstream and downstream engineering activities in aerospace product realisation and maintenance technical services respectively. The depth and level of capabilities of people involved will increase as complexity of the work increases. Aircraft prime manufacturers are pushing for higher “value- addition” to the services provided to them. Thus the industry will require engineers with more expertise and experience. Today, for example, maintenance engineers are mainly working according to aircraft manuals but in the future, they may be involved in defining and writing the contents in the manual. One of the key challenges for the local market is the lack of maturity (compared to developed countries) and fragmented nature of the industry. In order to leverage on its support capability, it requires the engineering services’ customers to provide them with consistent work in order to sustain the high cost base structure of engineering services operations. The development of a tightly-knit ecosystem approach is required where the availability and growth of local engineering services matches closely with the current operations and future capacity planning of the manufacturing or MRO customers. This will ensure the sustainability and growth of engineering service organisations.