Ingenieur Vol. 74 Ingenieur Vol 72, April-June 2018 - Page 17

Sepang Aerospace Engineering, AIROD and also Airbus Helicopters. Another key step is to expand geographically and into higher value-added services that can allow the nation to offer “nose to tail” services and give better turnaround time. Action that should be taken by Malaysia is to capitalize on the presence of foreign companies where local companies can collaborate and strengthen their services offering. Air traffic in the Southeast Asia region has grown significantly with the increase in the number of low-cost flights. This should be an eye-opener for the MRO industry players in Malaysia to take this opportunity to equip and position themselves as they grow to meet future needs especially in the components and modifications market segments. The MRO market segment in Malaysia has contributed the majority share of the aerospace industry revenue followed by the aero- manufacturing sector. Within the Asia-Pacific itself, the MRO market segments for Engines and Components has been dominating the 3 rd party MRO market. This is due to the airlines tending to retain the work for line and heavy maintenance in-house. Hence more effort should be done to increase the Engines and Components MRO so that it can provide for future needs of the airlines since it is expected that by year 2031, Asia-Pacific will be the biggest airline market in the world. Figure 5 shows the Malaysia’s trade performance in aerospace manufacturing and manufacturing revenue is shown by the blue column. (Source: MATRADE) Currently, Malaysia is second behind Singapore in Southeast Asia for MRO. It can be seen that most regional players are racing to capture new business as new markets emerge. Therefore Malaysia’s MRO companies need to be highly competitive to meet airlines’ needs, and overall increased capacity due to a larger numbers of aircraft owned by national carriers and LCCs. Aerospace Manufacturing Aerospace manufacturing in Malaysia is a rapidly developing sub-sector and has already overtaken other sub-sectors in the past few years. The main manufacturing activities are engineering and design, avionics, engine part manufacturing, aero-structure development as well as airframe equipment. According to Malaysia’s trade performance in aerospace manufacturing from 2009 until 2016 shown in Figure 5, 2016 marks the highest level of revenue generated though export activities in the decade at RM 5.53 billion an increase of 32.6% compared with 2015. Foreign investment by OEM companies as well as Tier 1 aerospace manufacturing companies are the main contributors to this rapid growth in the manufacturing market. With the help of tax exemptions and other beneficial aspects as stated in the 1997 Blueprint for Malaysia, OEMs and Tier 1 companies expanded their business in Malaysia with high levels of profitability. Avionics and aero- structure manufacturing achieved consistent revenue growth during these years. Aero engine part and component manufacturing are predicted to grow further in the next few years. Top tier manufacturing companies in