26/06/2026

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FRIDAY | JUNE 26, 2026

M’sian aerospace sector targets 15-20% revenue growth this year

o Opportunities to expand country’s role in global supply chain amid strong demand for aircraft and expansion in MRO services, says deputy minister

“Malaysia is very famous for MRO. This is a space where we have signi ficant strength. We also manufacture critical components, and these activities complement one another within the aerospace ecosystem.” He added that sourcing critical components locally enables MRO providers to access them more quickly while allowing Malaysian engineers to gain valuable technical know-how and design capabilities through maintenance operations. Sim said Malaysia’s aerospace capabilities received greater inter national recognition during the Covid 19 pandemic, when movement re strictions disrupted exports of locally manufactured aerospace compo nents, underscoring the country’s importance in global supply chains. “Malaysia’s aerospace equipment and components became very critical to the global aerospace supply chain. During that time, Malaysia’s name became recognised globally as an aerospace hub,” he added. Looking ahead, Sim said the government wants Malaysia to evolve beyond being an MRO destination into a comprehensive aerospace ecosystem encompassing manufacturing, tech nology development, talent and emerging aviation segments. He said dedicated aerospace clusters such as the KLIA Aeropolis, the Subang aerospace hub and other industrial parks are strengthening Malaysia’s attractiveness to global aerospace investors. “We want to build more ecosystems in Malaysia. There is increasing international interest in Malaysia’s aerospace capabilities.” Beyond conventional aerospace,

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

SERDANG: Malaysia’s aerospace industry is targeting revenue growth of 15% to 20% this year, driven by strong global aircraft demand, expansion in maintenance, repair and overhaul (MRO) services and increased production of critical aerospace components. Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the outlook remains positive as aircraft manufacturers continue to face delivery backlogs, creating opportunities for Malaysia to expand its role in the global aerospace supply chain. “Looking at the trend of global aerospace expansions, we are looking at 15% to 20%. Aircraft are in great demand, and both Airbus and Boeing still have delivery delays, so there is a lot of capacity that we can grow exponentially,” he told reporters after officiating the opening of the MyAERO Summit 2026 at the Malaysia Agro Exposition Park Serdang. Malaysia is currently home to about 250 aerospace companies that generate about RM32.5 billion in annual revenue, with strengths in MRO, advanced manufacturing, and the production of critical aircraft components. Sim said the country’s MRO capa bilities remain a key growth driver, supported by an established aviation ecosystem that includes major airlines such as AirAsia and Malaysia Airlines, as well as Singapore Airlines’ expansion of maintenance operations in Malaysia.

Sim (second, left) and Tengku Panglima Besar Selangor Tengku Abdul Samad Shah (second, right) launching MyAERO Summit 2026 at the Malaysia Agro Exposition Park Serdang yesterday. With them are Ministry of Investment, Trade and Industry deputy secretary-general Datuk Hanafi Sakri (right) and Naico Malaysia CEO Dr Shamsul Kamar Abu Samah. – BERNAMAPIC

manufacturers, MRO providers, airlines and regulators, as well as the MyAERO Centre of Excellence, which focuses on robotics, automation, advanced materials and augmented and virtual reality technologies. In addition, Malaysia is expanding local aerospace certification capa bilities through Sirim QAS by offering AS9100 certification for manufacturers, developing AS9110 certification for MRO organisations and planning AS9120 certification for aerospace distributors as demand grows. Sim said the government’s ob jective is to ensure discussions at MyAERO Summit translate into tangible outcomes. “The measure of success is clear – conversations must lead to contracts, interest must lead to investment, and connections must lead to technology partnerships and stronger regional supply chains.”

He said MyAERO Summit has evolved beyond an exhibition into a national platform where industry, government, academia and talent converge to drive partnerships, invest ments and capability develop-ment across the aerospace value chain. A key feature of this year’s event is the MyAERO Challenge 2026, which Shamsul said is one of the country’s largest aerospace talent development initiatives. The programme comprises four competition categories, High School, University, Industry and Open, covering nine challenges in engine design, unmanned aerial vehicles, autonomous nology providers, universities and government agencies. He noted that aerospace has been identified as one of the strategic industries under the New Industrial Master Plan 2030 because of its high technological intensity, its ability to generate high-value business oppor tunities, and its contribution to developing skilled talent. To strengthen the sector, Sim said, several ongoing initiatives, including the Aerospace Industry Ecosystem Enhancement and Innovation Fund, which has evolved into Malaysia’s first blended financing mechanism combining grants, subsidies, soft loans and equity financing to help SMEs expand and secure contracts with global original equipment manufacturers. He highlighted the rollout of the Malaysia Aerospace Digital System, a national digital platform linking

hub, underpinned by expanding industry participation and stronger colla-boration among stakeholders. He said this year’s three-day MyAERO Summit, the eighth edition of the national aerospace gathering, is the largest to date, featuring 106 exhibitors representing global aero space companies, local industry players, startups, academic institutions and government agencies. “This strong participation demon strates that Malaysia is not only part of the aerospace conversation, but we are also increasingly shaping it.” The first day of the summit saw 17 memorandums of understanding ex changed and formalised, which Shamsul Kamar said reflected growing confidence Sim said Malaysia also aims to position itself as an early participant in the emerging low-altitude eco nomy, which covers commercial drone operations, autonomous aerial systems and electric vertical take-off and landing aircraft. Miti, together with its agencies, including National Aerospace In dustry Corporation Malaysia (Naico Malaysia), will work with industry players to develop policies sup porting the new sector. “This is a new space. It is a new industry that not many countries have entered. If we are among the first movers, we will enjoy the first mover advantage,” Sim said. In his opening remarks earlier, the deputy minister said Malaysia’s aerospace ambitions have progressed beyond attracting manufacturers to building an integrated ecosystem that connects investors, suppliers, tech

We’re well-placed to move up MRO value chain: Naico Malaysia CEO SERDANG: Malaysia has significant opportunities to capture higher-value segments of the aerospace main tenance, repair and overhaul (MRO) ecosystem, building on its established strengths in airframe and base maintenance. and base maintenance accounted for around 40% of activity, followed by engine MRO at 25% and component MRO at 10%, which Shamsul Kamar said is a strong but still developing value chain. “This composition tells an in Malaysia as a strategic aerospace and advanced technology hub. systems and sustainable aviation. More than 800 participants from about 20 schools, 20 universities and technical institutions, and seven industry organisations are expected to take part.

Shamsul Kamar said the initiative reflects Naico Malaysia’s belief that talent is developed not only in classrooms but also through competition, innovation, and real-world problem-solving. He added that the continued support from strategic partners, exhibitors and industry collaborators demonstrates the shared commit ment to strengthening Malaysia’s aerospace ecosystem and positioning the country for long-term industry growth. - by HAYATUN RAZAK

important story: while Malaysia has established strong capabilities in airframe and base maintenance, there remains a significant opportunity to move further upstream and capture higher-value segments of the aerospace MRO ecosystem,“ he said in his welcoming remarks at the MyAERO Summit 2026 yesterday. Shamsul Kamar said the industry’s current trajectory reflected Malaysia’s growing maturity as an aerospace

National Aerospace Industry Corporation Malaysia (Naico Malaysia) CEO Shamsul Kamar Abu Samah said the country’s aerospace industry continued to demonstrate strong, resilient growth in 2025, supported by a well-balanced ecosystem spanning manufacturing and services. MRO remained the industry’s largest segment, contributing about 40% of total aerospace revenue. Within the MRO segment, airframe