22/01/2026

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THURSDAY | JAN 22, 2026

KUALA Airbus reaffirmed Malaysia’s importance as a key market for its commercial aircraft, defence and space businesses, underscoring its long term commitment to supporting the country’s aerospace sector through strong industrial collaboration. Participating in the New Defence Industry Policy Launch exhibition here, Airbus Defence and Space, Asia-Pacific head Zakir Hamid highlighted Airbus’ extensive industrial partnerships in Malaysia, which continue to deliver significant economic and capability benefits to the country. “While we have extensive collaborations with Malaysian industry on our commercial aircraft programmes, we have equally strong partnerships in the defence sector. “These include the deepening of the local defence eco-system to accelerate technology and knowledge transfer, the expansion of industrial self-reliance and the strengthening of Malaysia’s strategic defence capabilities. “What makes this partnership unique is the breadth of collaboration – spanning fleet modernisation, defence cooperation, local industrial participation and skills development,” Zakir said. As a strategic partner to Malaysia and a key contributor to local industrialisation, he added, Airbus remains committed to further growing its industrial footprint, particularly through the Industrial Collaboration Programme in the defence and space sectors. Malaysia is Airbus’ largest supplier base in Southeast Asia, with the company procuring an estimated RM1.5 billion worth of commodities annually and supporting approximately 5,000 direct and indirect jobs. Key suppliers include CTRM, UPECA and SME Aerospace, which manufacture components for Airbus’ entire civil aircraft range, as well as the A400M military airlifter and the H130 helicopter. Today, parts that are “Made in Malaysia” are flying on nearly every Airbus aircraft in production. More than 300 Airbus commercial aircraft are currently in service with Malaysian airlines, with close to 400 additional aircraft on order. LUMPUR:

Zakir (left) presenting Prime Minister Datuk Seri Anwar Ibrahim with a satellite model.

Airbus reaffirms commitment to Msia’s aerospace sector

o Country is key market for its commercial aircraft, defence and space businesses

foreign net outflows of around US$4.8 billion in the first 11 months, marking one of the largest annual outflows since 2010. However, the ringgit was among Asia’s stronger performers in 2025, appreciating 9%-9.8% against the US dollar, one of the best showings in the region, benefiting from improved external balances and capital inflows linked to data centre investments and AI-related infrastructure. Domestic demand in Malaysia remained resilient, with the economy expanding strongly. The estimates show GDP growth of about 4.9% in 2025, above earlier projections of 4.0%–4.8%. AMIC undertakes collaborative R&T projects with industry and universities, providing a clear pathway from research to market. “We are proud of the mutually beneficial partnerships we have built in Malaysia and look forward to further expanding our presence while supporting the continued growth of Malaysia’s aerospace ecosystem,” said Zakir. single-aisle aircraft, while Airbus Customer Services teams in Sepang and Putrajaya deliver specialised aircraft engineering and repair support across the region. Airbus is also expanding its research and technology footprint in Malaysia through the Aerospace Malaysia Innovation Centre (AMIC), an industrial research institute co led by Airbus.

long-term re-rating,” Chua said. Malaysia’s equity market underperformed several regional peers in 2025 as global investor attention gravitated toward AI-heavy markets such as the US, South Korea and Taiwan, despite relatively stable domestic fundamentals. The benchmark FBM KLCI rose about 2.3% for the year, lagging indices such as Singapore’s STI and Indonesia’s JCI which both gained over 20% in 2025. Foreign equity ownership in Malaysia has also remained near multi-year lows. Foreign investors were net sellers of Malaysian equities, with cumulative centre and, through a joint venture with Boustead, offers MRO services. Nearly 90 Airbus civil and military helicopters are currently in service in Malaysia, including the H225M with the RMAF, the AS355 with the Royal Malaysian Police, and the AS555SN Fennec operated by the Royal Malaysian Navy. In services, Sepang-based SAE provides MRO solutions for training and customer support from its Subang facility, which houses a state-of-the-art simulation centre for H225/H225M and Dauphin pilot and technical training. A new H175 flight simulator will be added soon to further strengthen regional MRO and training capabilities. Subang also serves as Airbus Helicopters’ regional delivery

having a multiplier effect on the local consumption and will translate into better corporate earnings. Chua also pointed to positive capital market catalysts including the pipeline of large initial public offerings coming. “I understand Sunway Healthcare should be happening soon this year. That should actually increase a lot of investor appetite to look at Malaysia.” In addition, Malaysia’s relatively high dividend yield across the broader market enhances its appeal in a rate-cut cycle, she said. “So all in all I would say that we don’t think Malaysia is just tactical. “We actually do think it’s right for a flight hours, the RMAF is currently the most active A400M operator globally. In the space domain, Airbus has delivered the MEASAT-3b and MEASAT-3d satellites, supporting MEASAT’s operations across Malaysia, Asia, the Middle East and Africa. For maritime surveillance and security, Airbus has maintained a 100% market share in Malaysia with its STYRIS® coastal surveillance solution, securing critical areas along the Straits of Malacca and in East Malaysia for over 15 years. Airbus Helicopters provides

she told reporters at the 2026 Asia Investment Outlook Media Briefing yesterday. Chua said that at an index level Malaysia missed out on a rally in 2025 but the strong ringgit has improved returns for foreign investors. “So if you’re looking from a perspective of a foreign investor the ringgit has actually given you a 10% appreciation last year.” Chua said that strong domestic consumption will continue to flow through in Malaysia this year. “What you’ve also seen is that the tourism numbers going into Malaysia have been phenomenal,” she added. Chua said this will translate into AirAsia is a major operator of the A320 Family and A330, while Malaysia Airlines operates an all-Airbus widebody fleet, including the recently delivered A330neo and A350 Long Range Leader. A cornerstone of Airbus Defence and Space’s partnership with Malaysia is the A400M programme, where Malaysia was the world’s first export customer. In 2025, the Royal Malaysian Air Force (RMAF) marked 10 years of A400M operations – a milestone reflecting the aircraft’s reliability and versatility. With over 14,000

Local equities poised for long-term re-rating, says Manulife

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

PETALING JAYA: Malaysian equities are poised for a long-term re-rating, underpinned by the currency, domestic consumption, tourism inflows and capital market pipeline, Manulife Investment Management said. Manulife Investments head of Asian equities June Chua said the firm views Malaysia as a structural re-rating story rather than a short-term value trade. “We do see that Malaysian equities are poised for a longer term re-rating instead of a tactical value opportunity,”