FRANKFURT, July 6 — Malaysia’s participation in the Paris Air Show recently has given a strong boost to the country’s aerospace industry, judging by the number of business-to-business meetings and the prospective business orders expected from the meetings, said Malaysia External Trade Development Corporation (Matrade) trade commissioner Badrul Hilal Hisham.
“According to the feedback we received, the 284 business meetings arranged by Matrade could potentially lead to business orders worth about RM700 million,” he told Bernama.
The event was participated by 12 Malaysian aerospace companies,” said Badrul Hilal who is based in Frankfurt and was involved in Malaysia’s participation at the Paris Air show.
Some of the big names in Malaysia’s aerospace industry such as Composites Technology Research Malaysia (CTRM), UMW Aerospace Sdn Bhd, Jecmetal Industries Sdn Bhd, Sapura Aerospace Technologies Sdn Bhd and Curge Advance Sdn Bhd showcased their products and services, including composite materials, parts and components, engineering design services, maintenance, repair and overhaul, as well as satellite applications.
The Malaysian government believes aerospace could play a game-changing role that could catapult it into the high-tech world map. Matrade has ironed out a strategy to give a strong impetus to the country’s aerospace industry by encouraging companies to demonstrate their prowess at prestigious international shows such as the one In Paris where the world’s leading Tier 1 and Tier 2 suppliers were present, besides those which are original equipment manufacturers (OEM) in aerospace.
Matrade chief executive officer (CEO) Datuk Wan Latiff Wan Musa told this writer on the sidelines of the Paris show that aerospace could add sheen to Malaysia’s international image as a supplier of highly sophisticated products and services.
“Let’s not forget that aerospace also has the potential to create jobs and provide livelihood to Malaysians, besides enhancing our exports. By supporting industries like aerospace, Malaysia also contributes, in the final analysis, to improving the living standards of the people by offering them good job opportunities,” Wan Latiff said, adding that the goal was to make Malaysia an aviation hub.
He noted that Malaysian companies could meet the stringent demands of the OEM, and thus become a valuable link in the global supply chain.
According to Matrade, Malaysia’s exports of aerospace parts and components in 2018 rose 20.7 per cent to RM8.48 billion, the major markets being the United States, United Kingdom, France, China and Singapore. Imports in the same period increased by 26.2 per cent to RM15.91 billion, mainly from France, the US, the Netherlands, China and Singapore.
“Also, consider the economic benefits…in 2018, aerospace generated total revenue amounting to RM13.3 billion, 48 per cent of which came from aerospace manufacturing and another 40 per cent from MRO (maintenance, repairs and overhaul) work,” he said.
The five key components of the aerospace sector were manufacturing of parts/components, MRO segment, systems integration, engineering design, and human resources development, he added.
Malaysia, meanwhile, produces complex parts for aircraft wings, fans, engine chasis, and body parts of aircraft made of composite materials, aluminium, titanium, and others.
Subang-based SPIRIT AeroSystems is ranked among Tier-1 suppliers of aircraft structures, while quite a few supply to the big aircraft manufacturers such as Airbus and Boeing as Tier-2 suppliers, thus making them the “original suppliers’ suppliers”, to use an industry jargon.
Malaysia’s national policy is also attuned to attracting foreign direct investment in the budding aerospace sector. Companies or subsidiaries owned or associated with Airbus or Boeing are setting up a base in Malaysia. Rolls Royce, which manufactures engines for aircraft, has inked a long-term supply deal with UMW Aerospace while General Electric is also working in the MRO sector near Subang.
Meanwhile, CTRM CEO Shamsuddin Mohd Yusof said in an interview with Bernama on the sidelines of the Paris Air Show, that despite the fierce competition, Malaysia offered several advantages to aerospace companies, foremost of which is the country’s strategic location in Southeast Asia.
CTRM, headquartered in Shah Alam, Selangor, is a leading composites’ aerostructure manufacturer.
“The key to success is to develop new innovative methods for manufacturing composites. We pay great attention to research and technology development. Our Technical Readiness Level is considered by the industry to be high,” Shamsuddin said.
He added that the advanced composites materials technology was one of the critical technologies for development. “Our goal is to take the lead in developing the advanced composites industry in Malaysia by developing people, capability and products.”
Shamsuddin said that he could “not emphasise enough” on the importance of innovation in order to sustain CTRM’s strong position. “…what we have done is to uplift our company and share this with companies in Malaysia. Indeed, Airbus has recognised our company as the best performing supplying company in 2018,” he claimed. — Bernama
