Malaysian Aerospace Industry Outlook The Secretariat, Malaysian Aerospace Council
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1 Malaysian Aerospace Industry Outlook The Secretariat, Malaysian Aerospace Council Langkawi 08 December
2 The Malaysia Government launched the National Aerospace Blueprint in 1997 to chart the route to enable the aerospace industry to become a growth sector for Malaysia Lays out 45 recommendations that are seen as a strategic gateway to position Malaysia as a technological competent and competitive nation Manufacturing Systems General Aviation Commercial Aviation Space Implementation of the Blueprint recommendations is currently undertaken through the Malaysian Aerospace Council To date, more than 70% of the recommendations have been implemented The status of the industry is reported to the Council at least once a year 2
3 Formed in 2001, the Malaysian Aerospace Council (MAC) rationalised the industry so that it focused only on the niche areas that Malaysia is strong namely National Programs National UAV Program SI Capability Dev Program Satellite Dev Program Next Gen Aircraft Program Aero R&T - AMIC LEADER Aerospace EPP5: Pure Play Eng Svs MIAC, Subang MRO Action Plan EPP1: Growing MRO Buss 3
4 Recent Development: MAC has recently approved a numbers of initiatives to boost the industry development Aerospace Malaysia Innovation Centre (AMIC); an industry-led collaborative research outfit EPP of Business Services NKEA EPP1: Growing the MRO Services EPP5: Growing Large Pure Play Engineering Services Incentive package for the aerospace industry ( ) Migration of the aircraft maintenance licensing systems to EASA Part 66 4
5 Current Status: The performance of the Malaysian aerospace industry is strongly linked to the global trends from the perspective of the investment landscape Quality FDIs Avionics Manufacturer Global Tier 1 Aero- Structure Manufacturer Global Tier 2 Aero- Structure Manufacturer Helicopter MRO Successful private ventures Facts (2010): Turnover: RM25.9 billion Employment: 53,000 Investments: RM1.4 billion (up to May 2011) (Source: MIDA) High potential outward investments Airport development - India, Turkey and Kazakhstan MRO provider - India 5
6 Commercial Aviation - Positive recovery due to innovative promotion by airlines supported by strong domestic spending power Turnover (2010) RM 18.4 billion 18% increment Recovery of MAS Expansion of AirAsia & Firefly business The recent share-swap deal between MAS and AirAsia will lead to strategic transformation moves Facts (2010): Air travellers: 57.8 million (11% increment) Cargo Movement: 918 matrix tonnes (12.4% growth) 6
7 MRO - This well-developed sub-sector is now emphasising on the development of local capabilities in components MRO to further deepen the scope of services Future growth Expected to undergo an accelerated growth under the Government s ETP Facts (2010): Turnover: RM4.6 billion Employment:
8 Aero Manufacturing - The aerostructures manufacturing business is one of the fast growing sub-sector fuelled by FDIs Future growth Expansion programs by Spirit Malaysia, CTRM, ACM & Upeca New investment Singapore Aerospace Manufacturing Group Facts (2010): Turnover: RM0.9 billion Employment:
9 Avionics & Systems Integration - New initiatives introduced to further develop local capabilities that will enhance Malaysia s competencies to be at par with the world standard Systems Integration capability development program Led by CTRM Systems Integration Sdn Bhd - focus on mission systems development and demonstrator projects Developing the avionics sub-sector through FDI Leveraging Honeywell investment to localize supply chain Other national initiatives ALUDRA: National Unmanned Aerial Vehicle project RazakSAT : the nation s first remote sensing satellite 9
10 Aerospace Training & Education - the Government has undertaken several initiatives to cater for the unique needs of the aerospace industry Initiatives approved by the Cabinet Committee on Human Capital (Feb 2010) Strengthening DCA s capability to increase the rate of license award up to 320 license per year; Providing study loans for aircraft maintenance training programmes; Matching funds to encourage the industry to collaboratively undertake bridging programmes to convert fresh graduate engineers as fullfledged design engineers; and Upgrading training facilities to enable aerospace-specific training programmes to be conducted. 10
11 Moving Forward: The business friendly policies & availability of competent workforce give Malaysia an advantage above its regional neighbours to become an aerospace hub Local aerospace industry will continually grow in tandem with recovering global economy Welcomes FDIs, JVs, strategic alliance & outsourcing from parties benefiting from such partnerships Government commitment to resolve issues and facilitate investments projects Industry forecast To grow at comfortable rate of 8% based on healthy investment landscape & positive business prospect. 11
12 12
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