MALAYSIA is targeting RM1 billion worth of investments this year in its aerospace industry, and RM150 million in the shipbuilding and repairs (SBSR) sector.

Malaysian Investment Development Authority chief executive officer Azman Mahmud said half of the targeted amount has been achieved for the aerospace business.

“We have confirmed RM500 million. That’s in the bag for aerospace. We have the rest of the year to negotiate the rest,” he said at the Langkawi International Maritime and Aerospace Exhibition (Lima) today.

Earlier, International Trade and Industry Minister Darell Leiking had announced the 2018 performance of the aerospace and SBSR sectors.

The aerospace sector made RM14.4 billion in revenues. It recorded more than RM800 million in approved investments.

Leiking said for 2019, any revenue above last year’s figures will be an achievement.

“We want more revenue, of course. We are working to better coordinate with Naico (National Aerospace Industry Coordinating Office), pushing for one body to handle coordination.

“Naico had worked hard with Mida, Matrade (Malaysia External Trade Development Corporation) and others to ensure we got RM14.4 billion last year.”

Meanwhile, the SBSR sector recorded RM33 million in investments last year.

 “The industry will grow and we will provide engagement opportunities by bring delegations to air shows in places like Paris, Montreal and Japan, and Oman for shipbuilding,” said Matrade chief executive officer Wan Latiff Wan Musa.

He added export is also a key component for both sectors.

Meanwhile, on sourcing fighter jets from China, Leiking said there is always such a possibility, declining to further comment on Prime Minister Dr Mahathir Mohamad’s recent suggestion that Malaysia should not buy fighter jets from European Union manufacturers as a retaliation to the region’s anti-palm oil campaign.

Malaysia is the world’s second largest palm oil producer after Indonesia.

“We will look at China because we have trade with them and in terms of cost effectiveness. There are other countries like Turkey that offers us similar trade.

“But the PM mentioned China specifically because he is impressed by their technology. They produce very interesting aircraft,” Leiking said.

Yesterday, Defence Minister Mohamad Sabu said the Cabinet will discuss Dr Mahathir’s suggestion, as it has to do with the EU’s anti-palm oil campaign. – March 26, 2019