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Malaysia, the next hub for aerospace OEMs

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M-AeroTech Sdn Bhd, explores the future of aerospace OEMs in South East Asia

With the ever highest passenger traffic footprint in Asia Pacific for the next two decades (a good 7.3% annual traffic growth and more than a third of global RPK-Revenue Passenger Kilometer in 2032), coupled with an ever growing fleet size towards 12,000 aircrafts by 2032 (currently 4,650) for the region, it is not surprising that the OEMs are revisiting their value chain supply capability and forecasting a more value added paradigm shifts towards the east.

Malaysia’s central location with its geo political advantage, its engineering framework and data infrastructure along with its aspiration to become a driver of the aerospace growth in Asia, has created a solid base for aerospace industry development. With over 200 aerospace-related organisations, an estimated combined earnings of over RM27.5 billion and with over 54,000 employees in this sector, Malaysia is becoming a conduit for global aerospace players, in terms of engineering services, manufacturing and MRO. 

Malaysian government have invested USD 1billion (RM3.1billion) in the aerospace industry to date. The government has already undertaken two of its major Entry Point Projects (EPP 1 & 5) under its Economic Transformation Programs (ETP), which are targeted to elevate the Malaysian aerospace industry and create a gateway for the global players into the South East Asian region.

Asia Aerospace City: The Complete Business Ecosystem
Asia Aerospace City (AAC) is a brand that stands for the global aerospace standard in connecting the aerospace players worldwide with the opportunity for growth in Asia. This is a state of the art facility that is fully supported by the Malaysian government, aimed at bridging the space between the technical proficiency-competence and the engineering facilities required by the top industry players.

Malaysia is producing about 20,000+ engineers annually, mostly in fields related to mechanical, electrical and electronics engineering. AAC has already initiated an apprentice-like program with Glyndwr University in North Wales, which is the heartland of the British aerospace industry. This is a tailor made program that emerges from the requirements of the OEM and aims at creating a more industry-ready talent pool, trained by the top experts in the industry. Ease of doing business is another criterion that AAC offers. It provides businesses with a one-stop solution centre which facilitates government interaction and in-depth market insights and understanding. 

Asia Aerospace City is strengthened by MARA (Majlis Amanah Rakyat), the Malaysian government agency responsible for education and entrepreneurship, who has been the anchor for developing Malaysian Human Capital since 1967. 30% of current Malaysian human capital is generated through MARA, working either in Malaysia or abroad. 

MARA is instrumental in driving various high-tech institutes and industry players to collaborate in its OEM partnered R&T programs. This breeds a transfer between high standard and competent human resources and the tools and technology required to face the new innovations and developments of the future aerospace industry. 

Malaysia is a vibrant nation with a dynamic business environment and a thriving economy with stable government bodies, which are highly aspired and determined with their strategic vision to lead the aerospace industry growth in Asia.

And now Malaysia is ever ready to launch its new frontier through Asia Aerospace City for the next generation of aerospace businesses and developments through its renewed energy and world-class promise.

Come explore your future at the Malaysian Pavilion located in Hall 2, 2/C25

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