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MONDAY | JUNE 8, 2026

Strategic specialisation key to achieving aerospace hub goal

Ű BY JOHN GILBERT sunbiz@thesundaily.com

SERI KEMBANGAN: Commercial vehicle distributor Angka-Tan Motor Sdn Bhd is targeting sales of 1,000 units of China’s Foton light commercial vehicles this year, more than double volumes from three years ago. Corporate sales and operations general manager Aaron Chai said Chinese commercial vehicle brands are gaining traction in the Malaysian market that has long been dominated by Japanese manufacturers. Angka-Tan sold more than 800 units last year and is carrying a backlog of nearly 400 orders, with delivery lead times of about three months, a sharp turnaround from previous years when demand was weak and inventory levels were high. “The customer waiting period has gone from negative three months to positive three months. Now backlog order is almost 400 units waiting with delivery lead times stretching to about three months,” Chai told SunBiz on the sidelines of an industry event. He said there has been a noticeable transition at the dealer level in the past three years, with many distributors previously focused KUALA LUMPUR: Malaysia should focus on strengthening a few foundational areas over the next five years to become a stronger aerospace hub by 2030 and remain competitive in the regional aero space landscape. Global Turbine Asia Sdn Bhd (GTA) executive chairman Datuk Nonee Ashirin Mohd Radzi said Malaysia is well-positioned to continue developing strengths in engine maintenance, repair and overhaul (MRO) and regional com mercial aviation support services, where there is already established capability and demand. “Firstly, a clearer sense of strategic specialisation will be important. This allows Malaysia to complement rather than directly replicate the roles of neighbouring hubs,” Nonee Ashirin told SunBiz . Secondly, a continued develop ment of aerospace infrastructure and ecosystems will be key. “Expanding and upgrading hubs such as Subang and aerospace zones like Kulim Aeropolis can help improve efficiency, attract invest ment and support more advanced aerospace activities,” she said. “Thirdly, maintaining a stable and predictable policy environment will remain important for long-term planning by global OEMs (original equipment manufacturers) and industry players, particularly in a sector that relies on long investment cycles and technical certification. “Overall, Malaysia’s competitive ness will depend on strengthening its existing advantages and ensuring consistent execution across these areas,” said Nonee Ashirin, who is also the president of the Coalition of Defence Industry (Malaysia). Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Ashirin said. Pointing to the importance for local companies to move up the value chain instead of staying mainly as service providers, she said it is increasingly important for local companies to gradually move up the value chain in order to remain competitive and sus tainable in the long term. Nonee Ashirin said while service based activities will continue to play an important role, the greater opportunity lies in expanding into higher-value areas such as engineering support, systems integration, pre dictive maintenance, and data-driven solutions. “These areas are less exposed to pure cost com petition and offer

linked to Airbus Defence and Space and similar OEMs provide an important platform for this progression, as they enable technology transfer, capability development, and exposure to advanced aero space systems, Nonee Ashirin said. “For GTA, collaborations, such as that with Airbus Defence and Space, provide a direct pathway to deepen technical capabilities, particularly in engineering services and advanced main tenance systems, beyond traditional MRO activities. “Over time, this shift allows Malaysian companies to move from being subcon tractors to becoming trusted partners within global aerospace supply chains, with

o Malaysia must strengthen existing advantages, enhance infrastructure and ensure consistent policies for sector to remain competitive: Global Turbine Asia chairman

reassess cost structures, particularly as maintenance costs for ageing used vehicles rise. Angka-Tan Motor, which distributes Foton under Tan Chong Group’s Warisan TC Holdings Bhd, attributes much of its growth to its after-sales capabilities rather than pricing alone. The company supports close to two million spare part line items and offers a six-year, 300,000km warranty, positioning it competitively against more established brands. “In the commercial vehicle segment, people don’t only look at price or warranty. They look at spare part availability and after-sales support,” Chai said. This reflects the economics of fleet ownership, where downtime and maintenance costs often outweigh initial purchase price considerations. Local assembly, too, is becoming important as Malaysia tightens regulatory requirements for the automotive sector. Chai said Angka-Tan Motor operates on a completely knocked global OEMs, local companies, uni versities and technical institutions,” she said. In parallel, Nonee Ashirin said, there is growing development in defence-related aerospace capa bilities, particularly through colla borations with global OEMs and local industry players, which contribute to broader system support, main tenance, repair, upgrade and sustain ment capabilities for both fixed-wing and rotary aircraft platforms. “Within this context, Malaysia’s role can be seen as contributing to higher-value maintenance, engi neering, digital diagnostics, lifecycle management and sustainment services, complementing the strengths of neighbouring Asean countries while supporting regional supply chain resilience and opera tional readiness. “This collaborative regional approach helps strengthen the overall resilience, competitiveness and long-term sustainability of the Asean aerospace ecosystem,” Nonee

on Japanese marques pivoting towards Chinese brands. “There has been a significant paradigm shift from Japanese to Chinese. The overall commercial vehicle market in Malaysia, with annual volumes of about 14,000 to 15,000 units, has historically been dominated by Japanese players,” he said. Chai drew parallels with the smartphone industry, where brands such as Huawei and Oppo gained widespread acceptance after initial scepticism, eventually competing with incumbents such as Apple and Samsung. A key inflection point has been the adoption of Chinese trucks by large corporate fleet operators, which is helping to reshape market perceptions. As an example, Chai cited a leading Malaysian supermarket chain that upgraded from used trucks to new Foton vehicles, cutting maintenance costs substantially. “People are saying, ‘Wah, so big a company also using Chinese trucks? Why can’t we?’”. Chai said such high-profile adoption is encouraging small and medium-sized fleet operators to She noted that from an industry perspective, particularly in engine MRO where GTA operates, Malaysia’s strength lies in its existing technical capabilities and cost competitiveness within the region. Touching on Asean, Nonee Ashirin said the region’s growing aviation market presents opportunities for countries to develop complementary aerospace capabilities, and Malaysia is well-positioned to contribute in specific areas. “Malaysia has established strengths in engine MRO and aircraft maintenance services, supported by a mature aerospace ecosystem that includes advanced engine repair and overhaul capabilities, component maintenance, precision engineering, avionics support, composite repair, testing and certification facilities, as well as a growing pool of highly skilled aerospace talent. “These capabilities are further strengthened by established aero space parks, industry-led training centres and collaborations between

more stable, long term value creation,” she added. Partnerships

stronger tech nical depth and stronger and greater resi lience” With global supply chains

Nonee Ashirin says it is increasingly important for local

companies to move up the value chain to remain competitive and sustainable.

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Angka-Tan Motor aims to sell 1,000 Foton light commercial vehicles this year

to continued growth for Chinese commercial vehicle brands in Malaysia. Chai noted that Chinese manu facturers already dominate industry exhibitions and auto shows, signalling the scale of competition entering the market. Japanese brands still lead in overall market share, but Chai said the direction of travel is changing, with Chinese manufacturers steadily strengthening their position through a combination of pricing, product advancements and after-sales capabilities. “Given current trends in pricing, product quality and after-sales support, it is only a matter of time before Chinese brands overtake,” he said. Senior general manager and head of business Michael Chew said product quality has improved significantly over the past decade, driven by rapid ad vancements in engineering capa bilities, manufacturing processes and overall product development, as Chinese manufacturers accelerated efforts to close the gap with established global players. “Product quality has improved significantly over the past decade. From 2010 to 2020, you can see the shift. Product quality improved more than 100%,“ he added.

down (CKD) model and plans to expand localisation efforts, with one model currently sold as completely built-up expected to transition to CKD assembly by end-2026 or early next year. He added that the company is currently the only Chinese com mercial vehicle distributor operating on a full CKD basis in Malaysia, a positioning that could provide an advantage as authorities push for greater localisation. While electrification is gaining traction globally, adoption in Malaysia’s commercial vehicle seg ment remains at an early stage. Chai said Foton already offers electric trucks locally, but demand is largely limited to multinational corporations with environmental, social and governance targets. “In China, about 20% of trucks are already electrified. In Malaysia, it is still a fraction of a percent.” The slow uptake reflects a lack of policy mandates, limited charging infrastructure and higher upfront costs, suggesting that broader adoption will depend on regulatory support and ecosystem development. Despite the early stage of electrification, industry dynamics point