By NNN-Bernama,
Kota Kinabalu, Malaysia : A preliminary meeting has been held ahead of the inauguration later this year of the Malaysian Aerospace Council (MAC) to review challenges facing the aerospace industry and to identify possible initiatives to strengthen future growth.
The discussion, held Sunday in this capital of the eastern Malaysian state of Sabah, was chaired by Science, Technology and Innovation Minister Dr Maximus Ongkili. It also sought to identify new opportunities in the aerospace manufacturing industry.
Dr Ongkili said later that the discussion was pertinent in light of the current status of
global aerospace manufacturing outsourcing by Original Equipment Manufacturers
(OEMs) in Malaysia.
The discussion, which was attended by key industry players including representatives of Composite Technology Research Malaysia (CTRM), SME Aerospace and from the Government, focused on improving Malaysia’s approaches and strategies to sustain the
aerospace manufacturing business.
“Being a global player especially in Tier 2 (parts and component manufacturers) of the supply chain, Malaysian aerospace manufacturers will be directly impacted by the OEMs’ future outsourcing strategies,” Dr Ongkili said.
“During the discussion, the two major (local) players (CTRM and SME Aerospace) expressed their desire to move up the value chain as major manufacturers (Tier 1) within 15 to 20 years’ time. For that, they need government support as well as private funding to undertake investments in technology, training of workforce as well as for mergers and acquisitions (M&A).”
Dr Ongkili said the Malaysian Aerospace Council, to be chaired by the Prime Minister,
would meet on Dec 1 to consider the working committee’s proposals and recommendations, including those made in the discussion.
The council comprises industry players, relevant financial institutions, members of academia and government agencies. One of the platforms used to fast-track the growth of the aerospace industry is by tying the government’s capital acquisition with counter-trade programmes.
Dr Ongkili said in the case of aircraft engine acquisition by Malaysia Airlines from Rolls-Royce Limited, under the counter-trade programme, Airod Sendirian Berhad was granted full Authorised Maintenance Centre (AMC) status for the maintenance, repair and overhaul (MRO) of T56 engines in 2007.
At the same time, he said local aircraft parts manufacturer CTRM Aero Composites Sendiarian Berhad managed to secure aerostructure parts and components
manufacturing from a Tier 1 aerostructure company from the United States.
CTRM successfully secured work packages for the manufacture of V2500 engine nacelle worth 178 million Ringgit (one USD = about 3.1 Ringgit). It also became a Centre of Excellence for Engine Fan Cowls and was later awarded a contract worth RM3.5 billion for delivery up to year 2023.
Realising the opportunities that could benefit Malaysian companies through counter-trade programme, the Ministry of Finance recently appointed the Malaysian Industry-Government Group for High Technology (MIGHT), an agency under the Science, Technology and Innovation Ministry, to assist in putting together effective counter-trade programmes in all its capital procurements, he said.