LANGKAWI, March 31 — The Malaysia External Trade Development Corporation (Matrade) is optimistic that the country’s aerospace industry will maintain an upward momentum and register a double-digit growth this year.
Chief executive officer Datuk Wan Latiff Wan Musa said the nature of the industry is long term, with most orders made since five years ago.
“Barring any unforeseen circumstances or cancellation, the momentum should maintain.
“Most of the players are already working on current orders, they are almost guaranteed,” he told Bernama in an interview on the sidelines of the Langkawi International Maritime & Aerospace Exhibition 2019 (LIMA’19) here.
Matrade is capitalising on LIMA’19 to strengthen Malaysian companies presence among the world’s top aerospace and maritime industry players from France, Spain, the United States (US) and the United Kingdom (UK).
Wan Latiff said it is pivotal for the country to be more competitive to stay ahead of the game. In the aerospace industry, we cannot work alone. We need to be part of the global supply chain.
“In terms of readiness, our companies are willing to invest, keep up with (changing) technology and diversify their products. We also have an adequate supply of human capital and highly-skilled workers and we also offers competitive cost of doing business,” he said.
The government is proactive in lending support as denoted by its business-friendly policies, regulations and initiatives.
Malaysia is also trusted by international players, and almost all of them had set up operations in Malaysia.
The annual growth rate of exports for the industry has also been impressive. Within less than a decade, the industry’s exports experienced a double-digit growth from RM2.24 billion in 2012 to reach almost RM8.5 billion in 2018.
The main export destinations for Malaysia are Singapore, China, the US, the UK and France.
“The aerospace industry is growing stronger year by year, and Malaysia has already established itself as the regional aerospace hub for the ASEAN region.
“Currently, the industry has created over 23,000 jobs and the inclusion of more local companies in the global supply chain will contribute to their capacity and lead to more job creation,” he said.
The continued growth of the industry is aligned with the milestones charted by the Second Malaysia Aerospace Industry Blueprint (2015-2030) which aims to generate an annual revenue of RM55.2 billion and create more than 32,000 high-income jobs.
“The aerospace industry is set to continue its growth, with 230 companies actively involved in the export business. We hope to groom more local companies to be global players and we have set a target of developing at least 30 local companies annually to join the global supply chain,” said Wan Latiff.
The industry growth already leads towards the creation of more highly-skilled workers and this would also ultimately benefit other relevant industries, including automotive and oil and gas.
On key sectors within the aerospace industry, Matrade is targeting to promote, among others, the maintenance, repair and overhaul (MRO), aerospace manufacturing, systems integration, as well as education and training sectors.
“Both MRO and manufacturing are equally important for Malaysia. MRO contributes about 46 per cent and manufacturing accounts for 49 per cent of total revenue in the country’s aerospace industry,” he said.
During LIMA’19, Matrade coordinated the B2B engagements held at the Mahsuri International Exhibition Centre (MIEC) from March 27 until 30.
They included its signature International Sourcing Programme (INSP) and Global Sourcing Programme (GSP).
Matrade has identified 17 Malaysian companies from the aerospace, maritime and defence industries to be part of the International Sourcing Programme (INSP) and Global Sourcing Programme (GSP).
The companies are strategically matched by its Trade Offices from around the world with targeted companies that are keen to source for the products and services offered by the Malaysian companies.
Moving forward, Matrade will take part in several trade missions, namely the Aeromart Montreal 2019 in April, Paris Airshow 2019 in June, and an Export Acceleration Mission on Maritime industry to Oman in December.
LIMA’19, which saw the participation of 206 local and 200 foreign companies from 32 countries, including Turkey, Russia, the UK, the US and China, achieved a record of 42,030 visitors, including 17,226 foreigners.
The government signed RM3.67 billion worth of contracts and RM500 million business-to-business deals during LIMA’19. — Bernama
