MIDA EYES RM134 MLN INVESTMENTS FOR AEROSPACE INDUSTRY BY END OF 2023

LANGKAWI, May 30 (Bernama) -- The Malaysian Investment Development Authority (MIDA) is setting its sights on attracting RM134 million in investments for the aerospace industry by the end of 2023.

MIDA CEO Datuk Arham Abdul Rahman said the agency met with prospective aerospace companies, both foreign as well as domestic, with potential investment projects related to aero-manufacturing and maintenance, repair and operations (MRO) during the Langkawi International Maritime and Aerospace Exhibition (LIMA’23).

“Potential investment for these projects is estimated to be RM900 million in the next three to five years. MIDA's strategic vision and dedication are poised to revolutionise the future of Malaysia's aerospace industry,” he told Bernama.

He outlined the possibilities for manufacturing critical components, expanding MRO services, developing aircraft conversion and modification capabilities, and strengthening the local supply chain. With the projected growth in the Asia Pacific air travel market, Malaysia has a unique opportunity to position itself as a regional aerospace hub.

“To support the aerospace industry's growth, Malaysia could focus on strengthening its local supply chain ecosystems, which includes developing engineering capabilities, electronics manufacturing, advanced materials production, and systems integration.

“By building a robust supply chain, Malaysia could provide a comprehensive range of components and services to the aerospace industry,” he said.

He further expressed that the investor sentiment in the aerospace industry in Malaysia has been generally positive and optimistic, especially with the presence and collaborations between global and local companies that have fostered the development of an industry ecosystem.

Indeed, the aerospace industry in Malaysia has witnessed a significant upward trend in approved investments from 2017 to 2019, in which approved investments surged from RM649.9 million in 2017 to RM2.07 billion in 2019.

“As for 2022, the number of approved investments in the aerospace industry amounted to RM146.8 million, with two projects from wholly-Malaysian-owned companies, while a total of 42 employment opportunities were created,” he said.

In the shipbuilding and ship repairing (SBSR) industry, Arham revealed that investments in the pipeline for the year 2023 include the establishment of shipbuilding and ship repairing facilities for the defence, commercial, and offshore oil and gas industries.

“The total potential investment for these projects is estimated to be around RM2 billion which will be undertaken in phases over the next five to ten years,” he pointed out.

From January to March 2023, Arham said Malaysia recorded a total export value of RM133.5 million for maritime products, with the top five exports being tugs and pusher craft (RM52.6 million), cruise ships, cargo ships, and barges (RM33.1 million), yachts and other vessels for pleasure or sports (RM31.6 million), floating structures (RM15.8 million), light vessels, dredgers, floating docks, and floating or submersible drill platforms (RM0.3 million).

“Meanwhile, the top export destination during the same period were Indonesia (RM44.6 million), United Arab Emirates (RM22.1 million), United States (RM18.9 million), Singapore (RM13.8 million), and Brunei (RM6.2 million),” he said.

He also said that MIDA hopes to attract more investments from both domestic and foreign companies, not only for the shipbuilding and ship repairing activities but also for parts and components and other related services including technology providers.

“Malaysia welcomes investments from foreign and local companies in the SBSR industry, providing vast opportunities for investors to engage in activities such as constructing shipyards, dry docks, and repair facilities to meet the growing demand in the country,” he added.

-- BERNAMA