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Aerospace Opportunities In Malaysia


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Opportunities in Malaysian aerospace industry

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Aerospace Opportunities In Malaysia

  1. 1. Sector briefingAerospace Opportunitiesin MalaysiaWhy Malaysia?Malaysia has one of the fastest growingcommercial aerospace sectors in the Asia-Pacific region. With an average growth 11%year on year from 2004 – 2008, the turnoverfrom the commercial aerospace sector in 2008is RM25 billion (£5 billion; assuming £1 =RM5.00).The Malaysian Government has targeted theaerospace industry to be one of its mainengines for growth in the next decade. Toachieve this, the Government has set up theMalaysian Aerospace Council to steer thedevelopment of the local aerospace sector. The “Malaysia’s ambition is toimportance of this Council can be seen by the become a major aerospacefact that Dato’ Seri Mohd Najib, the Prime player in the Asia-PacificMinister of Malaysia himself chairs it. It is region by 2015 and a world-hoped that through its intervention, Malaysiawill be come a major aerospace player in 2015 class supplier by 2020”and a world-class supplier by 2020.For more general information on the Malaysianmarket conditions, please visit UKTI’s website.The Doing Business Guide for Malaysia gives anoverview of the economy, business culture,potential opportunities and an introduction toother relevant issues regarding doing businessin Malaysia.UK Trade & Investment Sector briefing: Aerospace opportunities in Malaysia
  2. 2. Opportunities In Malacca, Composite Technology Research Malaysia (CTRM) is involved with theOpportunities for UK aerospace companies in manufacture of composite parts for variousMalaysia are increasing – important areas are Airbus models including the latest A380. Thedetailed below: - company is also a supplier to US-based Goodrich Aerostructures.Commercial AviationMalaysian two main operators namely, In 2009, US-based Honeywell AerospaceMalaysia Airlines (MAS) and AirAsia continue to established a manufacturing facility inexpand their domestic and international routes. Malaysia. The products manufactured at thisIn the previous two years, MAS has ordered US$150 million facility are avionics integratedmore than 50 aircraft (A380s, B737s, A330s systems, control systems, communicationand ATR72-500s) whilst, AirAsia is set to systems and many othersbecome the biggest A320 operator in the worldwith 70 A320s currently in service with another In early 2010, Spirit AeroSystems (Malaysia)150 A320s on order from Airbus. Sdn Bhd – Spirit is the worlds largest independent supplier commercial aircraftFirst tier suppliers like Airbus, Rolls-Royce, assemblies and components – commencedBoeing and others continue to find Malaysia a operations in a 242,000 sq. foot (totallucrative market and this trend is set to investment around US$150 million)continue as the growth of airtravel in the Asia- manufacturing facility in Subang. Currently,Pacific region continue to surpass that of this facility is producing parts and componentsEurope and North America. for A320 family but future work will include the design and production of parts and componentsMaintenance, Repair & Overhaul (MRO) for Airbus newest aircraft, the A350.The MRO sub-sector is the second largestcontributor to the total turnover of the Aerospace Education & TrainingMalaysian aerospace sector with RM4 billion(£0.8 billion) turnover in 2008. The Malaysian Government, through the Malaysian Aerospace Council, recognise that inIn 2010, this sub-sector’s overall turnover is order to sustain growth of the industry, thereexpected to increase futher. With the must be a continuous supply of qualityincreasing number of commercial, military and workforce. The up skilling of local institutionsgeneral aviation aircraft operating in Malaysia, for aerospace education & training are given amore MRO activities will be generated. high priority by the Government. These localMoreover, the trend of outsourcing MRO work institutions are constantly on the look out forto low cost centre, especially in the Asia-Pacific co-operation opportunities with suitable foreignregion has increased in recent years. Malaysia institutions with the right well-placed to capture these newopportunities. For example, Malaysian If you have any questions on the opportunitiesAerospace Engineering (MRO subsidiary of above, contact the UKTI Malaysia AerospaceMalaysia Airlines)’s revenue for third party contacts named in this report. Businesswork increased from 12% of total turnover in opportunities aimed specifically at UK2005 to 30% in 2009. companies are added daily to UKTI’s website. These leads are sourced by our staff overseasAerospace Manufacturing in British Embassies, High Commissions andMalaysia has a rapidly growing aerospace Consulates, across all sectors and in over 100manufacturing industry and the Government markets.sees its development as a vehicle to improvingthe countrys overall manufacturing expertise You can be alerted to business opportunities onand research & development capability. a regular basis by registering on the UKTICurrently, Malaysian companies are receiving website. Find out more on UKTI’s businessmany work packages for various aerospace and opportunities service on the UKTI websitedefence programmes as more European andAmerican companies are outsourcing theirlower-end manufacturing due to costs concern.UK Trade & Investment Sector briefing: Aerospace opportunities in Malaysia
  3. 3. Major events and activities UKTI contactsFind full details of all Malaysia aerospace James Chanevents on the UKTI website. New export Senior Trade Managerevents are added daily to the site and you can British High Commissionregister to be alerted to them on a daily, 185 Jalan Ampangweekly or monthly basis 50450 Kuala Lumpur Tel: ++ 60 3 2170 2212UKTI’s Tradeshow Access Programme (TAP) Fax: ++ 60 3 2170 2285provides grant support for eligible Small & Email: Sized Enterprises (SMEs) to attend Website: shows overseas. Find out more aboutUKTI support for attendance at overseas Jennifer Wongevents Assistant Trade Manager British High Commission 185 Jalan Ampang 50450 Kuala Lumpur Tel: ++ 60 3 2170 2251 Fax: ++ 60 3 2170 2285 Email: Website: Trade & Investment Sector briefing: Aerospace opportunities in Malaysia
  4. 4. Next steps -How UKTI can help • Arranging appointmentsBritish companies wishing to develop their • Organise seminars or other events forbusiness in the Malaysian market are advised you to meet contacts and promote yourto undertake as much market research and company in the Malaysian marketplanning as possible in the UK. UKTI’s team inMalaysia, with its wide local knowledge and This work is available via our Overseas Marketexperience, can provide a range of services to Introduction Service (OMIS) a chargeableBritish-based companies wishing to grow their service which assists British-based companiesbusiness 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 Malaysian market to find contact details for your local UKTI • Establishment of interest of such office. contacts in working with youWhereas 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 & CommonwealthOffice), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility acceptedas 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