LANGKAWI: The government is targeting a seven per cent growth in the aerospace industry in the country this year, from RM12.7 billion in 2016.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said today 55 per cent was expected to come from the manufacturing side of the industry.
He said the maintenance, repair and overhaul (MRO) sector was expected to contribute RM6 billion, especially in the engine and components segment.
Mustapa said the industry's expected growth would provide an estimated 1,500 more jobs.
"I am confident that we will be able to achieve this target as, in 2016, nine aerospace projects with investment values totalling RM1.6 billion were approved. Of this amount, RM673.9 million, or 43.1 per cent, comprised local investments while the remainder was from foreign investors.
"Exports from the industry in 2016 went up by 32.6 per cent to RM5.53 billion. Most of the products which exported were components and spare parts," he said.
Mustapa said the industry was growing rapidly, especially with the involvement of small and medium-sized enterprises (SMEs).
He said more and more SMEs, in fact, were getting involved in the industry with some large companies, which were previously involved in the oil and gas industry, switching over to the aerospace industry.
Mustapa said this was a good sign for Malaysia, which aims to be the regional aerospace industry hub.
"To date, the industry has provided 21,000 jobs for locals, with more than 200 companies involved. The government will continue to support industry players and bring in investments which are (of) quality in order to ensure the industry's growth, especially in the field of technology."