THE Malaysian aerospace industry continues to soar with the sector forecasting expansions worth about RM800 million following investments approved in 2018, said Dr Mahathir Mohamad.

The prime minister said 11 new aerospace investment projects worth RM816.3 million were approved last year.

The projects are also expected to create 1,500 jobs, said Dr Mahathir in his opening speech at the 15th Langkawi International Maritime and Aerospace Exhibition 2019 (Lima 2019) at the Mahsuri International Exhibition Centre this morning.

Dr Mahathir said the positive developments last year were namely in the aerospace manufacturing and MRO (maintenance, repair & overhaul) business, which covered 48% and 46% of market share respectively.

The industry made RM14.4 billion in revenue and provided 24,500 highly skilled jobs in total.

Internationally, Malaysia is known for its quality aerospace products produced for global aerospace leaders such as Airbus, Boeing, Rolls-Royce, Safran, Honeywell, and Thales.

Malaysia has made aerospace parts and components like the fan cowl by Composites Technology Research Malaysia, aircraft doors by Spirit AeroSystems, fan casing by UMW Aerospace, carbon brakes by Safran Landing Systems, avionics system by Honeywell Aerospace Avionics, and ailerons by Aerospace Composites Malaysia.

”Some of these products are being showcased throughout Lima 2019 to highlight Malaysia’s capabilities in producing world-class aerospace products.

“Lima 2019 should serve as a place for global players to search for local suppliers involved in the export of aerospace products,” he said.

Last year, the total export of aircraft and associated equipment and parts made in Malaysia was valued at RM8.48 billion, an increase of 20.7% compared with 2017.

Importing countries included the United States, Singapore, United Kingdom, China, and France.

Meanwhile, the maritime industry’s shipbuilding and ship repair (SBSR) sector saw a 20.3% growth in export value in 2018 compared with the previous year, reaching RM1.29 billion.

“Our main exports under this sector are ships, boats and floating structures, which include light vessels, dredgers, floating docks, and cargo ships, among others,” said Dr Mahathir.

“These products are exported to various destinations, namely Thailand, Australia, Nigeria, US, and Indonesia.”

Dr Mahathir said Malaysia was also looking to expand beyond SBSR, going into ship design, parts and components manufacturing, system integration, and other marine equipment production.

The prime minister reiterated Malaysia’s plan to be the leading aerospace nation in Southeast Asia and an integral part of the global market, as spelt out under the Malaysia Aerospace Industry Blueprint 2030, and cited the vast business opportunities.

He said the International Trade and Industry Ministry has, through the National Aerospace Industry Coordinating Office, implemented various aerospace industry development initiatives to achieve this goal.

Among the initiatives are industry facilitation, local supply chain development, competency development, research and technology, international collaboration, and human capital development.

Dr Mahathir also said it was expected that expenditures in the defence and commercial sectors would increase due to growing demands for security, defence, and commercial needs.

“In 2018, the defence expenditures for Southeast Asia were estimated to be more than US$35 billion (RM142.4 billion).

“As for the commercial sectors, the expansion of low-cost carrier businesses in Southeast Asia has accelerated the activities for aerospace manufacturing, training, and travel and tourism industries.

”The original equipment manufacturers are forecasting that by 2037, more than 4,200 new aircraft valued at US$650 billion will be delivered to this region.”

The government, said Dr Mahathir, would continue to facilitate investment projects and business partnerships as well as provide business platforms for the aerospace and maritime industries.

He added that the Defence Ministry was still preparing its first defence white paper, which outlines its priorities and future plans to bolster the country’s defence and security for the coming decades.

The biannual Lima, which started in 1991, is organised by the Defence and Transport Ministries, and EN Projects Sdn Bhd.

It uses the 119,000 sq m indoor and outdoor exhibition spaces at the MIEC and Resorts World Langkawi.

There are delegations from 31 countries, 390 defence and commercial firms, 98 aircraft, 43 visiting warships and maritime assets, as well as 400 local and foreign journalists in Langkawi for the event, which starts today and ends this Saturday.

After the opening ceremony, Dr Mahathir also attended the Aerospace Technology Systems Corp’s handover ceremony of Sukhoi M52-11 aircrafts to the Royal Malaysian Air Force.

The handover on the tarmac marked the successful completion of the aircraft’s 10-year calendar inspection for the preventive and restoration works programme.

The prime minister also visited BAE Systems’ Hawk aircraft, which has served the RMAF for 25 years.

The Hawk contract since 1994 has created 7,000 jobs in Malaysia and helped support the establishment of leading aerospace industrial capabilities.

BAE Systems of the United Kingdom also presented, on behalf of its industrial partners, Dr Mahathir with a model of the Hawk to mark the occasion and to recognise his role in bringing industrial and economic benefits to Malaysia through his encouragement of international aerospace partnerships.

BAE Systems is participating in Lima 2019 as the largest international supplier to the Malaysian Armed Forces with equipment in service across domains, including Hawk operating with the RMAF, ships and other maritime products in service with the Royal Malaysian Navy and a range of equipment operated by the Royal Malaysian Army. – March 26, 2019.