KUALA LUMPUR: The Malaysian Investment Development Authority (Mida) is optimistic about the growth prospects of the local aerospace industry due to expected strong demand for aircraft in the region over the next 20 years.
Mida manufacturing development (non-resource) executive director Datuk Wan Hashim Wan Jusoh said an estimated 35,280 aircraft worth US$4.84 trillion were expected to be delivered to countries around the world from last year to 2032.
“Asia-Pacific is set to see the most aircraft delivered during that period, with an estimated delivery of 12,820 aircraft worth US$1.89tril,” he said at a briefing on the Malaysian aerospace industry yesterday.
“Many firms see Asia Pacific region as an opportunity and Malaysia is in the heart of the region.
“We have the relevant infrastructure and stand a good chance to have companies set up operations here.”
According to Wan Hashim, a total of RM55.9mil worth of investments from two foreign companies were approved for the local aerospace industry in the first quarter of 2014.
A total of RM190.6mil and RM196.7mil worth of investments from domestic and foreign companies respectively were approved for the local aerospace industry in 2013.
On expectations for this year, Wan Hashim said: “We would like to target as many investments as possible. It’s actually not easy to get the companies to invest here.”
As of March 2014, a total of 62 companies have invested in Malaysia with a total of RM11.7bil in the aerospace sector, of which 28 are in the maintenance, repair and overhaul activities and 34 in manufacturing.
Wan Hashim said the aerospace industry was expected to contribute an additional RM16bil to gross domestic product (GDP) through two entry point projects (EPPs) under the Economic Transformation Programme.
“The two EPPs have been identified and are expected to contribute RM16bil to GDP and create about 32,000 job opportunities.
The Government had agreed to set up the Aerostructure Manufacturing Innovation Centre which would carry out research and development relating to aircraft structure manufacturing and also serve as the highest level study and training centre.”
Wan Hashim said the RM40mil centre was funded by the Government and industry players.
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