The Malaysian Aerospace Industry Blueprint 2030 was launched in 2015. The blueprint is a long-term strategic plan to develop the aerospace industry in Malaysia over the coming years.
But that was not the first time Malaysia had published an aerospace blueprint. The first time was in 1997.
The key points of the blueprint revealed in 2015 were to develop the aerospace industry in Malaysia, establish Malaysia as a regional aerospace hub, and increase Malaysia’s global competitiveness in the aerospace sector. Pretty much similar to the 1997 document.
The latest blueprint sets out several thrusts and objectives to achieve these goals.
The first thrust is Human Capital Development, which aims to develop a highly skilled workforce in the aerospace industry. The objective is to create a pipeline of talent through collaboration with universities and industry partners to provide training and education for aerospace-related courses and certification.
The second is Industry Capacity Building, which aims to develop the supply chain and infrastructure for the aerospace industry in Malaysia. This includes developing the necessary infrastructure, such as airports, maintenance, repair, and overhaul (MRO) centres, and test facilities.
The third thrust is Research and Development, which aims to develop innovative technologies and solutions that can be applied in the aerospace industry. The objective is to increase Malaysia’s capacity for R&D and encourage collaboration between industry players, research institutions, and academia.
The fourth is Market Development, which aims to position Malaysia as a strong player in the aerospace sector. The objective is to develop targeted market segments, increase exports, and form strategic partnerships with key industry players.
The blueprint’s focus is on several aerospace sectors, including aircraft and aircraft components, aero engines, MRO, and aerospace systems. It also aims to develop the aerospace ecosystem in Malaysia by encouraging local participation in the industry and promoting collaboration between industry players.
The status of the blueprint implementation is mixed. Some initiatives have been successful, such as the establishment of the Aerospace Malaysia Innovation Centre (AMIC) and the development of aerospace parks. Others have faced challenges. The Covid-19 pandemic also disrupted the implementation of the blueprint to a certain degree, as the aerospace industry was severely impacted by the crisis.
Human Capital Development remains one of the biggest challenges. This was supposed to have been done in tandem with the overhaul in the national education system, but that too, has suffered a series of false starts and bumps. Malaysian universities are nowhere near the capabilities of established schools of aerospace and engineering, such as the Massachusetts Institute of Technology (MIT), CalTech, and Texas A&M, in terms of funding, facilities, and cutting-edge research.
In terms of Industry Capacity Building, Malaysia has seen some progress in this field. Malaysia is already a major components supplier to some of the more established names in aerospace, with the creation of MRO centres through tie-ups with a number of world leaders, such as General Electric, Rolls Royce, and Lockheed Martin.
However, we are still behind in terms of advanced test facilities and laboratories to conduct advanced research into aeronautics, systems integration, weapons development and integration, radar technology, engine and power plant development, avionics development, and flight testing. The lack of an advanced supersonic wind tunnel to explore high-speed flight regimes, for instance, is also a hindrance to Malaysia’s dreams of becoming a global aerospace player.
Where Malaysia has excelled is in the area of sub-assemblies, components, and aerostructures manufacturing. Companies like CTRM and Spirit Aerosystems have been building their portfolio as a dependable and reliable manufacturer of aerospace components, and are doing well, for the most part.
The third thrust, R&D, aims to develop technologies and solutions that can be applied in the aerospace industry and increase Malaysia’s capacity for R&D, and to act as a catalyst for collaboration between industry players, research institutions, and academia.
However, there are two major stumbling blocks to this. The first is the lack of a single lead agency to oversee, coordinate, and supervise all research and development activities across all the major disciplines, such as propulsion, aerodynamics, flight control systems, thermodynamics, hydrodynamics, and guidance and navigation. An agency along the lines of the US National Aeronautics and Space Administration (Nasa) or Russia’s Central AeroHydrodynamic Institute, would greatly improve the coordination of efforts in this area.
The second, of course, is money. To illustrate, for Fiscal Year 2024, the US Congress approved a budget of US$27.2 billion for Nasa. Of the amount, US$3.5 billion will go towards research into aeronautics. In contrast, Malaysia has no direct comparative figures dedicated to aerospace research, relying instead on tax incentives and other financial breaks to attract foreign investors. The result is a disjointed, fragmented approach to research and development, where everyone works in silos, and no one knows what the other chap is doing.
The fourth thrust is Market Development, which aims to position Malaysia as a strong player in the aerospace market, an extremely lucrative sphere. The global aerospace market reached a value of nearly US$298 billion in 2020, having decreased at a compound annual growth rate (CAGR) of -0.3 per cent since 2015. The market is expected to grow from US$298 billion in 2020 to US$430.9 billion in 2025 at a rate of 7.7 per cent.
By comparison, the Malaysian aerospace and defence market was estimated to be valued at US$8.37 billion in 2020. By 2030, the industry is projected to contribute about US$6.6 billion, registering a significant drop.
The small gains Malaysia has achieved over the last 20 years are in danger of being chipped away by more competitive countries, such as Indonesia and Vietnam, with their comparatively low labour costs, excellent semi-skilled labour force, a clear government road map, a mature manufacturing and industrial base, and a passion for innovation.
In order to maintain our small lead, Malaysia needs to get its act together. The creation of a National Aerospace Industry Coordination Office (NAICO) to oversee the development of the aerospace industry, theoretically seems like the right step in the right direction.
However, it needs to be staffed more by engineers and project managers who understand the nuances of engineering and aeronautics, as well as business, if it hopes to succeed.
