ASIA-PACIFIC
The Asia-Pacific is a diverse and dynamic region,
with the evolution of aviation both in the past and
future but it is not possible to simply characterise it
as a whole. Wide variations exist within Southeast
Asia with its important global hubs and the
influence of deregulation through ASEAN, to North
East Asia with its mix of more mature markets and
growing low-cost carrier (LCC) presence, all heavily
influenced by the burgeoning Chinese aviation
markets. Looking at a country level, the diversity
of Asia-Pacific is again evident with Thailand,
Indonesia, the Philippines and Malaysia at similar
levels to Europe in terms of LCC penetration,
with China and Japan for example still apparently
having room for further development given the
right conditions.
AEROSPACE INDUSTRY IN MALAYSIA
The growth of aerospace industry in Malaysia
started back in 1997 with the launching of the
National Aerospace Blueprint. This led to the
creation of more than 150 companies nationwide
which has resulted in revenue of RM9.5 billion,
excluding airline activities, over the period 1997
to 2017. This definitely proves that Malaysia has
the capability to be a global player in this sector.
In 2001, the Malaysian Aerospace Council was
established as one of the key recommendations
in the National Aerospace Blueprint. The Council’s
objectives include the development of the vision,
direction and overall development plan for the
industry, and to establish policies/guidelines
and identify priority areas. In the following years,
Malaysia studied the production of aero parts
and ventured into the composite manufacturing
industry. Four growth areas have been identified:-
1. Maintenance, repair and overhaul (MRO),
2. Parts and components manufacturing,
3. Avionics and System, and
4. Global Centre for Training and Education.
The significant growth of the MRO sector
was evident in 2004 when Subang airport was
transformed into the Malaysia International
Aerospace Centre (MIAC). MIAC has become
a regional MRO hub where most of the MRO
companies are situated. This significant action
taken by the Government has led to a massive
improvement in the industry through it’s business-
friendly policies. The Government provided an
incentive package for the aerospace industry
during the years 2010 to 2014 and a blanket tax
exemption for the import of parts and components
for MRO. It has also encouraged MRO companies
to outsource the provision of aircraft components,
ground systems, simulator and ground support
equipment.
To ensure the sustainable growth of the
aerospace industry, the Malaysian Aerospace
Industry Blueprint (MAIB) 2030 was launched
during the Langkawi International Maritime &
Aerospace Exhibition 2015 (LIMA’15). With this
blueprint, Malaysia has set its target to become
the No. 1 aerospace nation in Southeast Asia
and to have a significant role in the global market
by the year 2030. It aims for the MRO sub-
sector to achieve 5% of global market share by
the year 2015. In recent years, despite the high
competition from Singapore, Malaysia has made
tremendous growth to become the leading MRO
hub in Asia. This can be assured with the AirAsia
Group’s venture into the MRO business and the
revival of Malaysia Airlines Engineering.
Five focus areas are highlighted in the MAIB
2030:-
1. Maintenance, repair and overhaul (MRO),
2. Aero-manufacturing,
3. System Integration,
4. Engineering and design services, and
5. Education and training
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