KUALA LUMPUR: The Malaysian aerospace industry's revenue is on track to grow 15-30 per cent this year to up to RM18 billion, supported by the increase in maintenance, repair and overhaul (MRO) activities.
National Aerospace Industry Corporation Malaysia (Naico Malaysia) chief executive officer Shamsul Kamar Abu Samah said the country had seen a dynamic stride in its aerospace industry with an accumulative of RM5.7 billion new work packages secured by the local supply chain last year.
"We hope that some of these new projects will commence next year, contributing additional revenue to the industry. However, our optimism is cautious, as uncertainties persist regarding other products in production.
"The revenue is estimated to be over RM16 billion as of the third quarter of the current year, but the exact amount will not be known until next year," Shamsul said at a press conference in conjunction with Malaysia Aerospace Summit (MyAero Summit) 2023 here today.
The aerospace industry has achieved a cumulative of RM5.7 billion of new work packages, and RM600 million of MRO projects are currently being implemented by the industry players.
The January-September 2023 trade valuation soared to RM16.67 billion, accompanied by a notable 26.9 per cent rise in exports to RM4.18 billion versus RM3.29 billion in the same period in 2022, showcasing the industry's resilience and growth potential.
Shamsul said foreign companies, particularly from Europe and Singapore, are recognising the potential within Malaysia's MRO ecosystem.
In a strategic move, he said these international players are actively exploring avenues to leverage the country's expertise.
Meanwhile, Shamsul said industry players have secured multiple work packages related to parts and components for single-aisle aircraft as well as engine components, which are now widely promoted in the global aerospace supply chain.
"This segment falls under the manufacturing sector in the aerospace industry, which contributed 48 per cent of the industry's revenue, whereas MRO contributed about 49 per cent, and the balance is the training business," he said.
On small and medium enterprises (SMEs) participation in the industry, UMW Aerospace Sdn Bhd head of business development and programme management Mohamad Azili Samad said local SMEs are dealing with the challenges of meeting global companies' requirements and standards.
Despite a surge in orders and MRO activities, Mohamad Azili said the aerospace sector faces a critical shortage in capacity and competency, presenting both challenges and opportunities.
"SMEs are dealing with global standards and they need to ramp up production to meet global demand. That is one of the main issues facing our small players," he added.
Organised by Naico Malaysia, MyAero Summit 2023 celebrated the aerospace industry's strategic significance in driving Malaysia's economic growth and technological innovation.
The key focus of the summit is Sustainable Aviation Forum, which brought together experts and panelists to discuss making aerospace more sustainable, environmentally friendly, and economically viable with topics such as Malaysia's Net Zero Aerospace Carbon Emission.