Malaysia represented by Senior Minister and Minister of International Trade and Industry, Dato’ Seri Mohamed Azmin Ali, and Japan’s Minister of Economy, Trade, and Industry Koichi Hagiuda exchanged a Memorandum of Cooperation on Aircraft Industry aimed at strengthening, promoting, and developing stronger Malaysia-Japan cooperation in the industry.
Leveraging Japan’s position as a key partner country for collaboration in the aircraft industry, the MOC provides tremendous opportunities for Malaysia to strengthen its cooperation with Japan in establishing a framework for creating a sustainable supply chain for the aircraft industries of both nations.
The National Aerospace Industry Corporation Malaysia (NAICO Malaysia) will be the main focal point for the MOC’s initiatives, particularly in engineering & design; aerospace manufacturing; maintenance, repair & overhaul; Research & Technology; and human capital development.
Currently, Japanese aerospace investments in Malaysia are mainly focused on engineering services and aerospace manufacturing. With the MOC in place, more opportunities in other sub-segments can be explored by both aerospace industry players for mutual benefits.
Over the years, the Malaysia Aerospace Industry Association (MAIA) has been collaborating with the Society of Japanese Aerospace Companies (SJAC) in developing strong industrial relationships between the local players of the two countries. Companies such as Spirit AeroSystems Malaysia, SME Aerospace, and Strand Aerospace Malaysia have been working with Japanese companies such as MHI, Kawasaki, Asahi, Mitsua, and Wada on both Western and Japanese aircraft programmes.
Throughout the pandemic, MAIA and SJAC have been sharing insights and best practices to overcome supply chain
challenges. With the MOC in place, greater opportunities are in the offing for our domestic industries to ride on the enhanced supply and value chains in tandem with the greater cooperation flowing from the growth of the aircraft industry in Malaysia.
One key target from the enhanced collaborations is the adoption of advanced technology and digitalisation that is pivotal to achieving a sustainable supply chain – where the transformation is necessary for companies, suppliers as well as the service and utility providers.
This will also support Malaysia’s National Aerospace Centre of Excellence initiatives to develop local expertise that is capable to grow the country’s ecosystem and support the industry needs.
The agreement is in line with the aspirations outlined under the Malaysian Aerospace Industry Blueprint 2030 and the Aerospace Industry Framework of the Twelfth Malaysia Plan. Both policy documents emphasise aerospace digital & Industry 4.0 transformation, ecosystem enhancement, and human capital development.
In 2021, Japan was Malaysia’s 8th largest trading partner for the aerospace industry with total aerospace merchandise trade reaching RM260.6 million accounting for 1.9% of Malaysia’s total trade in the aerospace industry.
With various concerted efforts in implementing industrial development strategies, the Malaysian aerospace industry is poised to contribute annual revenue of RM30 billion and create 30,000 highly skilled jobs by 2025.
