KUALA LUMPUR: The Malaysia Aerospace Industry Association (MAIA) hopes that the 2023 Budget will continue supporting the development of the local aerospace industry as highlighted in the 12th Malaysia Plan (RMK 12, 2021-2025).
MAIA president Naguib Mohd Nor said the aerospace manufacturing and maintenance, repair and overhaul (MRO) industry was growing at a faster rate than pre-Covid-19 with a large backlog order of aircraft and a growing number of flights.
"However, the pandemic has left its mark on the workforce leaving shopfloors struggling to cope with additional manning requirements."
"With the greater emphasis on Environmental Social and Governance (ESG) coming out of the pandemic, technology is playing a much larger role in ensuring both increase in productivity and more environmentally sustainable aircraft," he told the New Straits Times recently.
Naguib added that the impact of the decreasing workforce and the introduction of the ESG had resulted in the need for the manufacturing and MRO industries to invest in new skills as well as product technologies to keep abreast with the needs of the end client.
According to the pre-Budget 2023 statement, the aerospace industry was recognised as one of the new growth areas to accelerate Malaysia's transformation into a high-income nation by 2025.
The other industries include electrical and electronics (E&E), the biomass industry, chemicals and chemical products, pharmaceuticals and the digital economy.
Naguib said technologies such as factory automation and sustainable aviation fuel (SAF) were now critical to ensure that Malaysia capitalise fully on the recovery of the industry.
"All countries who have pursued this industry continue to invest in it particularly coming out of the pandemic as it is a driver for innovation in the economy," he said.
Based on the Malaysian Aerospace Industry Blueprint 2030, Malaysia aimed to be the main aerospace nation in Southeast Asia as well as an integral part of the global market by 2030 with an expected annual revenue of RM55.2 billion and over 32,000 high income jobs created.
The blueprint encompasses five key subsectors in the aerospace industry, which include MRO, aero manufacturing, system integration, engineering and design services as well as education and training.
Aerospace in Malaysia also encompasses the drone and space technology industries, both of which are growing rapidly.
Naguib said the drone technology industry today has enabled farmers to increase the efficiency of crop spraying and the output of important food security crops.
"However, the industry needs further investment in talent and technology to keep Malaysia at the forefront of this global industry. The funding of the regulatory framework needed to support the industries growth is also key," he said.
He added that government agencies such as the Civil Aviation Authority of Malaysia and other such authorities should be funded to keep abreast with their counterparts globally.
The MAIA also hopes that the government continues to fund the development of the space technology industry as Malaysia has a growing number of start-ups in the field.