Aerospace opportunities in Malaysia

An Expert's View about Aircraft Parts and Equipment in Malaysia

Posted on: 1 Sep 2010

Latest overview of market potential for the aerospace sector in Malaysia

Sector briefing Aerospace Opportunities in Malaysia Why Malaysia? Malaysia has one of the fastest growing commercial aerospace sectors in the Asia- Pacific region. With an average growth 11% year on year from 2004 ? 2008, the turnover from the commercial aerospace sector in 2008 is RM25 billion (£5 billion; assuming £1 = RM5.00). The Malaysian Government has targeted the aerospace industry to be one of its main engines for growth in the next decade. To achieve this, the Government has set up the Malaysian Aerospace Council to steer the ?Malaysia?s ambition is to development of the local aerospace sector. The become a major aerospace importance of this Council can be seen by the fact that Dato? Seri Mohd Najib, the Prime player in the Asia-Pacific Minister of Malaysia himself chairs it. It is region by 2015 and a world- hoped that through its intervention, Malaysia class supplier by 2020? will be come a major aerospace player in 2015 and a world-class supplier by 2020. For more general information on the Malaysian market conditions, please visit UKTI?s website. The Doing Business Guide for Malaysia gives an overview of the economy, business culture, potential opportunities and an introduction to other relevant issues regarding doing business in Malaysia. UK Trade & Investment Sector briefing: Aerospace opportunities in Malaysia In Malacca, Composite Technology Research Opportunities Malaysia (CTRM) is involved with the manufacture of composite parts for various Opportunities for UK aerospace companies in Airbus models including the latest A380. The Malaysia are increasing ? important areas are company is also a supplier to US-based detailed below: - Goodrich Aerostructures. Commercial Aviation In 2009, US-based Honeywell Aerospace Malaysian two main operators namely, established a manufacturing facility in Malaysia Airlines (MAS) and AirAsia continue to Malaysia. The products manufactured at this expand their domestic and international routes. US$150 million facility are avionics integrated In the previous two years, MAS has ordered systems, control systems, communication more than 50 aircraft (A380s, B737s, A330s systems and many others and ATR72-500s) whilst, AirAsia is set to become the biggest A320 operator in the world In early 2010, Spirit AeroSystems (Malaysia) with 70 A320s currently in service with another Sdn Bhd ? Spirit is the world's largest 150 A320s on order from Airbus. independent supplier commercial aircraft assemblies and components ? commenced First tier suppliers like Airbus, Rolls-Royce, operations in a 242,000 sq. foot (total Boeing and others continue to find Malaysia a investment around US$150 million) lucrative market and this trend is set to manufacturing facility in Subang. Currently, continue as the growth of airtravel in the Asia- this facility is producing parts and components Pacific region continue to surpass that of for A320 family but future work will include the Europe and North America. design and production of parts and components for Airbus newest aircraft, the A350. Maintenance, Repair & Overhaul (MRO) The MRO sub-sector is the second largest Aerospace Education & Training contributor to the total turnover of the Malaysian aerospace sector with RM4 billion The Malaysian Government, through the (£0.8 billion) turnover in 2008. Malaysian Aerospace Council, recognise that in order to sustain growth of the industry, there In 2010, this sub-sector?s overall turnover is must be a continuous supply of quality expected to increase futher. With the workforce. The up skilling of local institutions increasing number of commercial, military and for aerospace education & training are given a general aviation aircraft operating in Malaysia, high priority by the Government. These local more MRO activities will be generated. institutions are constantly on the look out for Moreover, the trend of outsourcing MRO work co-operation opportunities with suitable foreign to low cost centre, especially in the Asia-Pacific institutions with the right expertise. region has increased in recent years. Malaysia is well-placed to capture these new If you have any questions on the opportunities opportunities. For example, Malaysian above, contact the UKTI Malaysia Aerospace Aerospace Engineering (MRO subsidiary of contacts named in this report. Business Malaysia Airlines)?s revenue for third party opportunities aimed specifically at UK work increased from 12% of total turnover in companies are added daily to UKTI?s website. 2005 to 30% in 2009. These leads are sourced by our staff overseas in British Embassies, High Commissions and Aerospace Manufacturing Consulates, across all sectors and in over 100 Malaysia has a rapidly growing aerospace markets. manufacturing industry and the Government sees its development as a vehicle to improving You can be alerted to business opportunities on the country's overall manufacturing expertise a regular basis by registering on the UKTI and research & development capability. website. Find out more on UKTI?s business Currently, Malaysian companies are receiving opportunities service on the UKTI website many work packages for various aerospace and defence programmes as more European and American companies are outsourcing their lower-end manufacturing due to costs concern. UK Trade & Investment Sector briefing: Aerospace opportunities in Malaysia Major events and activities UKTI contacts Find full details of all Malaysia aerospace James Chan events on the UKTI website. New export Senior Trade Manager events are added daily to the site and you can British High Commission register to be alerted to them on a daily, 185 Jalan Ampang weekly or monthly basis 50450 Kuala Lumpur Tel: ++ 60 3 2170 2212 UKTI?s Tradeshow Access Programme (TAP) Fax: ++ 60 3 2170 2285 provides grant support for eligible Small & Email: Medium Sized Enterprises (SME's) to attend Website: trade shows overseas. Find out more about UKTI support for attendance at overseas Jennifer Wong events Assistant Trade Manager British High Commission 185 Jalan Ampang 50450 Kuala Lumpur Tel: ++ 60 3 2170 2251 Fax: ++ 60 3 2170 2285 Email: Website: UK Trade & Investment Sector briefing: Aerospace opportunities in Malaysia Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Malaysian market are advised you to meet contacts and promote your to undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in Malaysia, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Aerospace opportunities in Malaysia
Posted: 01 September 2010