The Malaysian aerospace industry is on track to achieve its RM18 billion revenue target for this year, and the upward momentum is expected to continue into 2024.

National Aerospace Industry Corporation Malaysia (NAICO) CEO Shamsul Kamar Abu Samah estimated that this year the industry’s revenue has exceeded RM16 billion up to the third quarter, driven by the maintenance, repair and overhaul (MRO) and manufacturing sectors.

Last year, the industry raked in revenue of RM15.3 billion, he said.

“Most of the revenue that we’ve captured is from (these sectors). Both sectors represent more than 49% and 48% (respectively) of the industry, while 5% is from different sub sectors, particularly engineering services as well as training,” he told reporters during a press conference after Malaysia Aerospace Summit 2023 (MyAero Summit 2023) yesterday.

However, he said the exact revenue figures will only be officially announced early next year.

On outlook, Shamsul said NAICO is cautiously optimistic for 2024, as it expects new projects secured to contribute to higher revenue for the industry.

“We hope that some of the new projects will begin by next year, hence we anticipate that the revenue will continue to increase,” he added.

Shamsul said industry players have secured multiple work packages related to parts and components for single-aisle aircraft as well as engine components, which are now widely promoted in the global aerospace supply chain.

Earlier this year, he said the Malaysian aerospace industry accumulated RM5.7 billion worth of new work packages secured by the local supply chain within the last two years as well as RM600 million worth of MRO projects being implemented by industry players.

Between January and September this year, the total trade valuation for the industry surged to RM16.67 billion, accompanied by higher exports by 26.9% to RM4.18 billion compared with RM3.29 billion in the same period in 2022, which showcased the industry’s resilience and growth potential.

In terms of trading partners, Shamsul said the biggest trading partners are from the US, France and China.

“The parts and components are being produced and supplied to all these OEM-based countries,” he added, referring to original equipment manufacturers.

MyAero Summit 2023 aims to bring together key industry stakeholders, government officials, and experts in the aerospace sector, showcasing the industry’s significance in driving Malaysia’s economic growth and technological innovation, at the same time incorporating the importance of sustainability.

NAICO is an agency under Ministry of Investment, Trade and Industry that leads the overall development of the aerospace industry and to oversee the implementation of the strategies and initiatives in Malaysian Aerospace Industry Blueprint 2030.