Malaysia's aerospace sector soars with strategic post-pandemic revival

KUALA LUMPUR: Malaysia’s aerospace industry is experiencing a robust revival post-pandemic, marked by significant growth and strategic advancements.

In 2023, the sector generated RM18 billion in revenue, with ambitious projections targeting RM55 billion by 2030, according to the Malaysia Aerospace Industry Blueprint (MAIB) 2030. Dr. Bicky Bhangu, President of Rolls-Royce South-East Asia, Pacific and South Korea.

"This growth trajectory is supported by a 15 percent increase in industry activity in 2023, expected to continue into 2024.

Key contributors to this growth include the aerospace manufacturing sector, which accounted for 48 percent of the revenue, and maintenance, repair, and overhaul (MRO) activities, contributing 49 percent, said Emeritus Professor Tan Sri Dr. Zakri Abdul Hamid, Joint Chairman of MIGHT & AMIC.

“The local supply chain has secured new work packages worth RM5.7 billion, with RM600 million specifically for MRO projects.

“Exports of aerospace products also saw a substantial increase, reaching RM979.9 million in the first two months of 2024 - a 31 percent rise compared to the same period last year."

Globally, the aerospace industry expanded from USD308.67 billion in 2023 to USD369.24 billion in 2024, driven by increased air travel, economic growth in emerging markets, and technological advancements, said Dr. Zakri Abdul Hamid.

“This growth is reflected in Malaysia's efforts to attract foreign investments and enhance its manufacturing capabilities.

Additionally, Dr, Bhangu said that technological innovation and sustainability are at the forefront of the industry's evolution.

“The focus is on improving connectivity, convenience, and safety for consumers, alongside achieving net zero carbon emissions by 2050.

“The industry aims to accomplish this through the adoption of next-generation aircraft, sustainable aviation fuels (SAF), and advancements in infrastructure and operations.

“SAF, in particular, is expected to significantly reduce carbon emissions, and Malaysia plans to become a producer of SAF by the second half of 2025,” he said.

As the Asia Pacific region is predicted to experience one of the highest air traffic growth rates globally, Malaysia’s role in supplying aerospace-manufactured components and SAF will be crucial.

The industry must continue to innovate, adopt new manufacturing techniques, and attract more aerospace players to maintain and expand its position in the global market. To maintain and expand its position in the global market, the industry must continue to innovate, adopt new manufacturing techniques, and attract more aerospace players, says both Dr Zakri Abdul Hamid and Dr. Bicky Bhangu on Niaga AWANI.