KUALA LUMPUR: The Malaysian aerospace industry attracted approved investments of about RM4 billion in 2015, said International Trade and Industry Minister, Mustapa Mohamed.
He said the amount was half the total approved investments of RM8.7 billion recorded for the sector between 2011 and 2015.
“We have developed a strong local supply chain, that comprises both global and local industry players.
“Malaysia is at present home to 34 companies involved in maintenance, repair and overhaul (MRO) activities, eight in aircraft assembly, with 20 being manufacturers of aircraft parts,” he added.
He told reporters this after officiating the Malaysian Investment Development Authority (MIDA)-Spirit Aerosystems Aerospace Suppliers Symposium 2016 here today.
The one-day symposium attracted 40 international participants and 65 potential suppliers from Malaysia.
Mustapa also noted that Malaysia’s aerospace industry had grown significantly and now provided more than 19,000 job opportunities, with the overall number of companies involved in it having reached more than 160.
The industry is projected to contribute revenue of RM20.4 billion for MRO, RM21.2 billion for aero-manufacturing and RM13.6 billion for engineering and design services by 2030.
Quoting Boeing’s current market outlook, Mustapa said the Asia Pacific would require almost 38,050 new commercial aircraft worth US$5.6 trillion by 2034.
“During this period, the region will account for the biggest market with 38 per cent of global deliveries of passengers and freight planes,” he added.
According to the Airbus Global Market Forecast, the company would increase its supply sourcing base in the Asia Pacific to 34 per cent from the current one per cent.
Mustapa is expected to reveal the overall 2015 industry performance on February 29.
Meanwhile, Spirit Malaysia Vice President Scott McLarty said Malaysia was a major supplier of wings for the Boeing 737 and Airbus’ A320 models.
Spirit Malaysia is the largest independent producer of large aerostructures with a US$7 billion annual turnover, while expected to double growth in the next five years.
“Malaysia is a very important and strategic region for us. We want to see it (the country) grow and draw on the many advantages it provides for our business,” McLarty added.
He said it was important for Spirit Malaysia to develop more (aircraft components) suppliers than what was currently available to capitalise on the opportunities in the industry space, as more people bought airplanes and businesses got bigger.
Airbus has established industrial relationships across the Asia-Pacific in working with manufacturers in countries such as Malaysia, China, Japan and South Korea, for the supply of parts used in the company’s various aircraft programmes.
Malaysia has become an important source of composite materials competence, and Airbus’ relationship with the country includes small and medium enterprises, alongside major players, Composites Technology Research Malaysia (CTRM) Sdn Bhd and SME Aerospace Sdn Bhd.
The latter two have become an important supplier of composite structures, ranging from wing components for the A320 Family and A350 XWB.