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The aerospace sub-sector of the
transport equipment industry has been identified
as one of the new sources of growth in the Ninth
Malaysia Plan, 2006-2010.
The government has identified various measures
to further develop and promote the sub-sector
under the IMP3.
In the long-term, the sub sector of the
transport equipment industry is expected to grow
at the rate of 4-5 per cent per annum.
The estimated annual value of the global
aerospace market is between US$34 billion and
USD40 billion.
In view of that, efforts will be intensified to
increase the export of composite materials and
advanced components, covering both Original
Equipment Manufacturer and replacement equipment
market.
Exports of the sub-sector declined from RM2.5
billion in 1996 to RM1.4 billion in 2005.
Major exports of aerospace products were parts
and components amounting to RM1.4 billion
followed by small aircraft and spacecraft launch
vehicles (RM24.6 million) and aircraft launching
gears, desk arrestors or similar gears (RM7.9
million).
Main export destinations in 2005 were the USA,
which absorbed exports valued at RM348 million,
Singapore (RM310 million) and the UK (RM305
million).
To further expand contribution of the sub-sector
among the measures identified by the government
include developing and promoting potential
growth areas in the sub-sector, strengthening
domestic capabilities, promoting support
services and developing Malaysia as an
outsourcing centre for aerospace product and
support activities.
The aerospace sub-sector which covers activities
such as maintenance, repair and overhaul,
manufacture of parts and components and
manufacturer of light aircraft faces increasing
competition from major manufacturers and service
providers in the world.
Quality, cost effectiveness and efficient
delivery in all areas of aerospace activities
are important for the continued viability of the
sub-sector.
Maintenance, repair and overhaul activities are
facing increasing competition from countries in
the region.
During the IMP2 period, 20 projects were
approved in the sub-sector, with investment
amounting to RM5.3 billion.
Foreign investments contributed RM4.4 billion or
83.1 per cent of the total investment in the
sub-sector and domestic investment, RM890.8
million.
Despite the increasing approved projects for the
aerospace sub-sector, imports by the sub-sector
increased from RM3.5 billion in 1996 to RM4.1
billion in 2005. Main import items were parts
and components, amounting to RM2.9 billion,
followed by aero planes, helicopters, and
satellite and spacecraft launch vehicles. Main
sources of imports in 2005 were the USA (RM1.7
billion), Germany (RM1.4 billion) and Singapore
(RM311 million). |
