Malaysia Pushes Aerospace Industry Higher as Local Firms Move Up Value Chain

Malaysia is strengthening its position in the regional aerospace supply chain as more local companies expand into higher-value manufacturing, maintenance and engineering services.

The country currently has more than 250 aerospace companies, generating RM32.5 billion in industry revenue and employing over 30,000 skilled workers, according to the Malaysian Investment Development Authority.

Local Aerospace Firms Target Higher-Value Opportunities

Malaysia’s aerospace capabilities now span research and development, engineering and design, manufacturing, maintenance, repair and overhaul (MRO), as well as talent development.

Over the past five years, 30 aerospace investment projects worth RM2.7 billion were approved, with the projects expected to create more than 2,600 high-value jobs.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim said the next stage would focus on developing more Malaysian companies capable of competing internationally and entering higher-value segments.

Under the Aerospace Industry Blueprint 2030, Malaysia is targeting further growth across MRO, aero-manufacturing and engineering services. The industry is also expanding into sustainable aviation fuel, with local projects expected to increase domestic production capacity.