Malaysian Aerospace Industry Outlook Press Conference Aerospace Meetings Kuala Lumpur 2011 The Secretariat, Malaysian Aerospace Council Kuala Lumpur 25 February 2011
Aerospace Industry is recognised as a new engine of economic growth for the country Malaysian Aerospace Council identified 4 focus areas for developing the industry Target: A major global player by 2015 MAC endorsed various strategic action plans to accelerate the industry development Recent initiative - Aerostructure Manufacturing Innovation Centre (focus on R&T) Malaysia has the potential to become the regional outsourcing center for Asia Pacific The industry recorded RM24.7 billion turnover in 2009 Contributed 3.63% of national 2009 GDP Expected growth for 2010: 4 to 6% Welcome more FDIs to accelerate local industry and supply chain development MIGHT 2011 RESTRICTED 2
Aero Manufacturing - Aerostructure business is one of the fast growing sub-sector Turnover in 2009 RM600 million, projected to reach RM1 billion by 2011 Positive growth following new expansion programs by Spirit Malaysia, CTRM, ACM & Upeca Recent achievement UPECA - 1 st batch of Airbus A350 XWB Series machined parts handover to Spirit CTRM - Boeing 787 Fan Cowl roll out More global players showed interest to invest/jv in Malaysia Component manufacturers Aircraft assemblers Raw material suppliers MIGHT 2011 RESTRICTED 3
Aero Manufacturing - Local supply chain is being develop to provide support to Tier 1 & Tier 2 companies Also focus on human capital development in achieving high income economy agenda Tier 4 Special processing shops Raw material supplier/stockists Jigs & tooling suppliers Standard parts suppliers/stockists OEMs Airframe Manufacturers Tier 1 Aerostructures, Avionics systems, Engines, Aircraft interiors, Landing gear, Actuators Tier 2 Aerostructures, Avionics systems, Engines, Aircraft interiors, Landing gear, Actuators subsystems & subassembly Tier 3 Components and parts Engineering Design Services Suppliers MIGHT 2011 Typical Aerospace Supply Chain (Source: QuEST Global) RESTRICTED Low Cost Region Suppliers 4
MRO - Malaysia aims to capture 5% of the global market share and is expected to undergo accelerated growth under the Economic Transformation Program (ETP) Turnover in 2009 RM4.3 billion - slightly up from 2008 The growth trend is expected to maintain as economic cycle undergo upswing ETP, an initiative by the Government to achieve high-income nation status Entry-Point Project No 1 (EPP1) of Business Services: Growing MRO business led by MAS Aerospace Engineering Develop Malaysia into a regional MRO hub Target to build a RM13.4 billion GNI MRO industry in Malaysia by 2020 Aim to create over 20,700 jobs MIGHT 2011 RESTRICTED 5
MRO - The sub-sector is quiet well developed, more focus on enhancing local capability in components MRO New enhanced incentive package for aerospace industry (2010 2014) is expected to further accelerate the sub-sector development Airframes Engines Components Others MIGHT 2011 RESTRICTED 6
Aerospace Human Capital - Specific HCD programs were developed to fulfil industry needs for professional & skilled human capital LEADER Aerospace A bridging program funded by MOHE to increase number of certified design & structural engineering workforce 1 st batch July 2010-24 engineering graduates selected from 500 applicants Program developed in collaboration with industry - Spirit Malaysia, CTRM & Strand Advanced Composite Training Centre (ACTC) @ UniKL-MIAT Established to support Spirit AeroSystems investment in Malaysia Supplying skilled composite technicians to composite manufacturing industry (aerospace & beyond) MIGHT 2011 RESTRICTED 7
SUMMARY - Malaysia has all it takes to become regional aerospace hub particularly in manufacturing and MRO We offer competitive cost as well as competent workforce FDIs, JV, strategic alliance and outsourcing packages are welcome Government through Malaysian Aerospace Council is committed in developing the industry Has a well developed blueprint, program and action plans to support national aspiration Global players are invited to consider Malaysia as their next location for investment and/or outsourcing Leverage on new aerospace incentive package (2010-2014) MIGHT 2011 Participate in various initiatives to strengthen local supply chain RESTRICTED 8
www.might.org.my MIGHT 2011 RESTRICTED