SINGAPORE, Feb 11 — Southeast Asia’s dynamic regional aerospace market has left Malaysia well positioned to capitalise on this industry, according to MATRADE chief executive officer Datuk Wan Latiff Wan Musa.
MATRADE or Malaysia External Trade Development Corporation is Malaysia’s trade promotion agency under the Ministry of International Trade and Industry (MITI).
Wan Latiff said currently Malaysia is home to more than 230 aerospace companies and “this is a great enabler for the development of a vibrant local supply chain comprising both international and local industry players.”
He said this at the opening ceremony of the Malaysia Pavilion at the Singapore Airshow 2020 and the soft launch of the Kuala Lumpur International Aerospace Business Convention (KLIABC) 2020.
Also present were Malaysian High Commissioner to Singapore, Datuk Zainol Rahim Zainuddin, and representatives from ministries, agencies and the private sector.
“Given the growing demand for commercial aircraft in this region, MATRADE is confident that the aerospace industry in Malaysia will remain a vibrant and thriving industry for many years to come.
“There is a need for technology transfer as the next step for industry excellence,” he said.
Moving forward, Wan Latiff said the agency would continue to spearhead the promotion of Malaysia’s aerospace industry internationally.
Apart from the Singapore Airshow and KLIABC 2020, other initiatives that MATRADE is involved in are Aeromart Seattle, USA; Farnborough International Airshow, UK; and Aeromart Toulouse, France.
“I am confident with all these in place, Malaysia will be a key player in the development of the industry globally and we look forward to forge collaborations with other nations for mutual benefit,” he said.
MATRADE facilitates the participation of 57 Malaysian delegates from 14 organisations at this year’s Singapore Airshow.
The corporation’s mission to the Singapore Airshow is to promote Malaysia’s capabilities in the aerospace sector, particularly in aero-manufacturing; maintenance, repair and overhaul (MRO); education and training services; aviation and also defence.
According to Wan Latiff, the aerospace industry in Malaysia had rapidly grown over the past years and is considered one of the high-impact sectors for the country’s export industry.
The Malaysian aerospace industry has seen strong growth and has provided more than 24,500 jobs mainly in aero-manufacturing and MRO sub-sectors.
The industry also contributed RM14.4 billion to the nation’s gross domestic product in 2018.
These are values that make the aerospace sector one of Malaysia’s high-value sectors, capable of accelerating the growth of Malaysia’s trade.
Currently, he said the aerospace industry activities can be seen throughout the country, especially in Selangor, Penang and Johor.
The Malaysian Government was committed to strengthening the aerospace ecosystem by implementing efforts to transform Selangor and Kuala Lumpur areas into Southeast Asia’s hub for aerospace particularly via Subang Aerotech Park and KLIA Aeropolis, he added.
Since 2014, Malaysia had maintained a double-digit growth in the export of aerospace parts and components, Wan Latiff said.
Last year, Malaysia recorded a 19.5 per cent increase to reach an export value of US$1.87 billion (US$1=RM4.13) compared to US$1.57 billion in 2018.
He said most of the products were exported mainly to the United States (US), Singapore, United Kingdom, China and France.
As for Malaysia’s major exports, key products include aerospace parts and components such as fan cowl, fan casing, thrust reverser, forward leading edge, aircraft door and others.
For imports, Malaysia’s imports rose by 36.4 per cent to US$2.18 billion with major imports mainly from France, the US, Germany, China and Singapore.
Wan Latiff noted that Malaysia provided various attractive packages for foreign investors in the aerospace industry to set their footprint in Malaysia.
Currently, he said Malaysia is home to international players such as Airbus, General Electric, Spirit Aerospace, Honeywell and many others.
“This has proven Malaysia’s strengths and the prospects we have in helping these big names secure a bigger market share in the region,” he added. — Bernam
