Malaysia is positioning itself as a leading aerospace hub in Asia, backed by a stronger investment climate, a growing industrial ecosystem and targeted government support aimed at accelerating the industry’s next phase of growth.
Investment, Trade and Industry Deputy Minister Sim Sze Tzin said the country’s aerospace ambitions have moved well beyond take-off, with the sector now generating RM32.5 billion in annual revenue through a network of about 250 aerospace companies spanning maintenance, repair and overhaul (MRO), manufacturing and advanced engineering services.
Speaking at the Malaysia Aerospace (MyAERO) Summit 2026, Sim said Malaysia’s improving global competitiveness has reinforced its appeal to international investors as the country climbed eight places to 15th position in the 2026 IMD World Competitiveness Ranking, its highest standing in a decade, reflecting a business environment characterised by efficiency, cost competitiveness and strong trade connectivity.
He noted that Malaysia’s aerospace strengths extend beyond incentives, anchored by world-class MRO capabilities and advanced manufacturing facilities producing critical components for global aerospace giants, including Rolls-Royce.
“To further support industry expansion, Malaysia has established dedicated aerospace parks such as Subang Aerotech Park, KLIA Aeropolis and Serendah Park, providing ready-built infrastructure designed to streamline operations, strengthen supply chains and reduce logistics costs for investors,” he said.
Under the New Industrial Master Plan 2030, aerospace has been identified as a strategic sector due to its high technology intensity, potential to create quality jobs and ability to drive broader industrial development.
“To support the sector’s continued growth, the government has rolled out several initiatives, including the Aerospace Industry Excellence and Innovation Fund, which has evolved into Malaysia’s first blended-financing mechanism combining grants, subsidies, soft loans and equity financing. The fund has been extended under the 13th Malaysia Plan to help local companies scale up and secure contracts with global original equipment manufacturers.
“Other initiatives include the Malaysia Aerospace Digital System, a national platform aimed at improving supply-chain visibility and operational efficiency, as well as the MyAERO Centre of Excellence, which is spearheading research and development in robotics, automation, advanced materials and augmented and virtual reality technologies,” Sim shared.
He then highlighted that Malaysia is also strengthening industry standards through local certification capabilities, with AS9100 certification already available domestically and efforts underway to introduce AS9110 certification for MRO organisations.
“The runway is ready, the demand is real and the talent is here,” Sim said, urging industry stakeholders to convert opportunities into investments and high-value jobs.
