The Minister of International Trade and Industry announced the formation of the Sustainable Aviation Energy Task Force led by MITI at the opening of the Malaysia Aerospace Summit 2022 (MyAERO’22).
The task force aims to provide policy recommendations and coordinate the implementation of public-private partnership national projects and initiatives to help achieve a reduction of carbon footprint in the aerospace industry including the production of Sustainable Aviation Fuel (SAF) in Malaysia. The Task Force consists of members from the government as well as the private sector.
MyAERO’22 was organised by the National Aerospace Industry Coordination Office (NAICO), MITI in collaboration with SOCSO, IEM and AMIC featuring the aerospace exhibition, career fair, and an industry seminar focusing on Digital Transformation and Innovation towards Sustainable Aerospace Ecosystem and a tech-talk session on Additive Manufacturing.
The event gathered stakeholders in the aerospace industry highlighting the potential and current capabilities of the Malaysian aerospace industry ecosystem and providing the platform for subject matter experts to share and promote industry competency development.
The Malaysian aerospace industry has been on an upward trajectory, positioning Malaysia as a regional powerhouse and integral to the global aerospace industry supply chain. Last year, the industry recorded RM 104.7 million worth of investments, total trade of RM 13.84 billion and revenue of RM 12.2 billion.
RM2 billion worth of work packages were awarded to the local aerospace industry involving RM 600 million worth of MRO expansion projects which are expected to be implemented by the fourth quarter of this year. The Farnborough International Airshow 2022 held last month saw Malaysian companies securing RM 572.6 million of business deals.
The government remains committed to facilitating the growth of the aerospace industry with the introduction of various initiatives currently being implemented under the Twelfth Malaysia Plan (12MP). These initiatives will be in coherence with the 3 focus areas by MITI in terms of policy direction and strategic initiatives in the near term namely trade and sustainable development, supply chain resiliency and human capital development.
About MITI
MITI is the key driver in positioning Malaysia as the preferred destination for quality investments and enhancing the nation’s rising status as a globally competitive trading nation. Its objectives and roles are oriented toward ensuring Malaysia’s rapid economic development and helping achieve the country’s stated goal of becoming a developed nation.
The aerospace industry
The global aerospace market is expected to grow from US$ 298.0 billion in 2020 to US$ 430.9 billion in 2025 at a rate of 7.7%. The global aerospace market is then expected to grow at a CAGR of 5.9% from 2025 and reach US$ 573.6 billion in 2030.
Growth factors in the historic period include increased demand for air travel technological advances, emerging economies, changes in social behaviour and low-interest rates. Factors that negatively affected growth in the historic period were high exchange rate fluctuations, political uncertainties, volatile raw material prices and grounding of planes.
Looking ahead, it is expected that there will be a growing demand for commercial use of drones, emerging economies, and rapid advances in technology. Factors that might hinder the growth of the aerospace market in the future include budget airlines’ bankruptcy, order cancellations, increased cyber-attacks, global warming, poor aviation infrastructure, geo-political tensions, global recession, and coronavirus pandemic.
