Malaysia sharpens its focus on becoming regional aerospace
KUALA LUMPUR: Malaysia is sharpening its focus on becoming a regional aerospace and shipbuilding hub, banking on high value investment, technical capability and geostrategic positioning to elevate its industrial profile over the next decade.
Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, chief executive officer of the Malaysian Investment Development Authority (MIDA), said the country is well positioned to serve as a competitive ASEAN aerospace base, driven by its strength in engineering, maintenance services and systems integration.
'At MIDA, our strategy hinges on high-quality investments, fostering local global partnerships and advancing key enablers such as industrial digitalisation and sustainability,' he said in an interview with Bernama.
To date, Malaysia's aerospace sector has secured RM26 billion in approved investments, with more than 18,000 jobs generated, affirming the nation's growing significance in the regional aerospace value chain.
In 2024 and the first quarter of 2025, the sector attracted RM1.5 billion spproved investments, of which 71.3 per cent was from foreign sources, with the remainder driven by domestic capital.
These projects are expected to create more than 550 skilled jobs, primarily in aerospace manufacturing and maintenance, repair, and overhaul (MRO) services, particularly among Tier 1 and Tier 2 suppliers.
Malaysia already hosts Boeing's only wholly owned manufacturing facility in Southeast Asia, Boeing Composites Malaysia (BCM), which produces composite parts for all Boeing commercial aircraft.
President of Boeing Southeast Asia, Penny Burtt regards Malaysia as a valued partner across Boeing's commercial aviation, defence and services businesses.
She said Boeing's efforts in Malaysia include advancing aviation safety, supporting sustainability initiatives, strengthening the supply chain, engaging the community and nurturing the aerospace workforce of the future.
'Boeing's 78-year presence in Malaysia is a testimony to our longstanding commitment to the country and the broader Southeast Asia region. BCM in Kedah, Boeing's first wholly owned manufacturing facility in Southeast Asia, taps the country's growing capabilities and talented workforce.
'Today, with all-Malaysian employees, BCM supplies composite products and subassemblies for all Boeing commercial airplanes,' she said.
Strategic Shift to Maritime
While aerospace remains the headline, Sikh Shamsul said Malaysia's ambitions extend offshore, while pointing to the shipbuilding and ship repair (SBSR) sector as an emerging pillar, underpinned by targeted investment and sustainability mandates.
'Malaysia should always remain vigilant of rising competition from lower cost yards in neighbouring economies such as Vietnam and Indonesia,' he said, adding that cost competitiveness alone will not secure the country's long-term standing.
Instead, he said, Malaysia should start focusing on reducing reliance on foreign automation tools, by approaching local robotic manufacturing in Malaysia that could build a whole new automated system integration to improve productivity in the SBSR manufacturing landscape.
Muhibbah Engineering (M) Bhd group managing director Mac Ngan Boon said Malaysia's geography gives the company a natural edge - over 4,600 kilometres of coastline and the domestic needs for various vessel and strategies.
'Innovation is central to our operations. We have adopted advanced technologies such as computer numerical control (CNC) laser cutting, virtual ship prototyping, and real-time simulations. These tools improve design precision, reduce production costs and enhance overall efficiency.
'We are also taking proactive steps towards sustainability, including exploring green vessel designs powered by solar and electric energy. These initiatives reflect our long-term commitment to building vessels that meet both market and environmental demands,' he said.
Looking ahead, he said the group's upcoming Kuantan Maritime Hub will be a game-changer — featuring a larger shipyard, defence and training facilities, as well as maritime partners and vendors.
'This is part of our long-term strategy to strengthen the maritime ecosystem and position Malaysia as a future leader in the sector.
'We also aspire for Malaysia to place strong emphasis on developing the entire maritime industry — from establishing dedicated maritime institutes to cultivating the necessary talent and building a robust vendor and supply chain network' he said.
Flagship Maritime Developments Taking Shape
Malaysia is developing flagship projects such as Lumut Maritime Industrial City, Kuala Linggi International Port and Kuantan Maritime Hub to transition its maritime sector from traditional shipbuilding to advanced technologically integrated manufacturing and logistics, aiming to boost competitiveness, create jobs and foster sustainable practices.
To date, MIDA has approved RM1 billion in investments for the SBSR sector. In the first quarter of 2025, the sector attracted an additional RM574.8 million, signalling sustained investor confidence.
Industry growth has been driven largely by demand in the leisure and security vessel segments, with Malaysian yards now producing high specification yachts and defence-related boats. Exports have reached markets as diverse as Australia, Europe, Nigeria and Brazil.
Charting a Dual-Engine Future
With its twin ambitions in aerospace and maritime manufacturing, Malaysia is signalling a shift from cost-driven industrialisation to value-based engineering and strategic export leadership.
As global supply chains recalibrate in response to geopolitical shocks and regional fragmentation, Malaysia must reframe its role as a high-trust systems integrator. This means anchoring local firms in design, integration, and value-added services — particularly for MRO, naval systems and advanced composite manufacturing.
On the aerospace front, the country must accelerate its ambition to build sovereign capabilities in composite structures, avionics and sustainable aviation technologies.
This requires stronger integration between SMEs and OEMs, not just as contract manufacturers but as co-development and IP-owning partners.
Malaysia's strategy for these industries must adapt to global geopolitical changes, including; reconfiguring trade alliances, the emergence of dual-use technologies, and the trend of nearshoring, to define its desired strategic autonomy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sinar Daily
33 minutes ago
- Sinar Daily
Batik revival faces identity and style challenge
KUALA LUMPUR - Since the mandatory implementation of batik attire among civil servants in 2023, this textile craft has experienced a resurgence, capturing the interest of various generations. Despite this growing popularity aligning with the government's aspiration to preserve and strengthen batik as part of the nation's cultural heritage, in reality, local support for Malaysian batik remains inconsistent and not yet deeply rooted in society. The mandatory implementation of batik attire for civil servants since 2023 has sparked a resurgence of interest in this traditional textile, aiming to preserve and strengthen Malaysian cultural heritage. - Bernama file photo Nearly three years into its weekly adoption by civil servants every Thursday-a practice that has since garnered interest from other sectors as well-Universiti Kolej Tunku Abdul Rahman fashion lecturer Shabri Saad said that consumers still tend to favour batik from neighbouring countries over locally made ones. "Batik isn't just a pattern. It's an art form-wearable artwork. I appreciate all types of batik, whether from Malaysia, Indonesia, India, China or Cambodia. But as Malaysians, we must uphold the art that originates from our own land. "If we don't support local batik artisans, I fear one day this craft will only exist in museums,' he said, adding that the preference for foreign batik is likely due to a lack of awareness and confusion surrounding the techniques, motifs, and true cultural value of batik. With more than two decades of experience in the batik world, Shabri noted that Malaysian batik-be it from Kelantan, Terengganu, Kedah, or Melaka-each carries a distinct beauty that must be preserved. For this reason, he believes that revitalising support for local batik cannot rest solely on government efforts, including initiatives by the Malaysian Handicraft Development Corporation (Kraftangan Malaysia). Instead, it must involve collaboration with all stakeholders, including NGOs, artists, and consumers. In this context, the Master of Design Technology holder highlighted the need for local batik to evolve, particularly in terms of design-moving away from overly dense and multicoloured motifs-as today's generation tends to prefer simpler, modern, and contemporary styles. "Young people want batik that's stylish, not something that looks like it's for uncles. A good batik design is one that makes the wearer look fresh and fashionable, without compromising on its cultural essence,' he said. He also recommended exploring more sophisticated colours that align with global fashion trends, such as toned-down hues, earthy tones, or pastels, which could help elevate Malaysian batik onto the global stage. Touching on pricing, Shabri noted that printed batik should not be completely dismissed, as it can serve as an entry point for the public to appreciate local batik designs and identity, especially considering its affordability compared to hand-drawn batik. "If we reject everything that's cheap, eventually even authentic batik will lose demand. With better understanding, appreciation for real batik will naturally grow,' he added. Meanwhile, 37-year-old civil servant Debby Lucas believes batik is more than just a meaningful cultural heritage-it is also a product of craftsmanship that requires patience, precision, and high creativity. "Each motif tells a story about nature, life, and community identity. In the past, batik was only worn to formal events, but now it's a modern fashion item suitable for the office or as a statement piece on the international stage,' she said, commending batik fashion designers who cater to young people's tastes. Faizah Ibrahim, 28, said price is not a major deterrent as there are still affordable batik options that match her personal style, including pieces she purchased from the Malaysian Prisons Department gallery. "I like batik made with dyeing techniques because it's comfortable, unique, and special-the patterns are one-of-a-kind. I also prefer tailoring my clothes over fast fashion because it looks neater, lasts longer, and is eco-friendly,' she said. - BERNAMA
Borneo Post
an hour ago
- Borneo Post
TAK Group eyes stronger Sarawak–Brunei links via Muara Port
Teo (right) presents a token of appreciation to Fazilah. MIRI (June 28): Malaysian developer TAK Group is eyeing to forge closer ties between Sarawak and Brunei, following a high-level meeting with Muara Port Company (MPC) in the sultanate on Friday. TAK Group founder and chairman Teo Ah Khing and MPC chief operating officer Fazilah Yassin met up for a two-hour session, which also involved officials from the Brunei Economic Development Board (BEDB). In the meeting, Teo highlighted TAK Group's flagship project, Kenyalang Smart City, currently being developed here through its subsidiary, IMASA Dinasti Sdn Bhd. 'This project aligns with Sarawak's Post-Covid-19 Development Strategy (PCDS) 2030, which aims to create jobs and grow the economy through innovation, sustainability, and digital transformation. 'Kenyalang Smart City is a smart idea built in Miri City. 'As Miri and Brunei economies become more connected, especially in the oil and gas sector, Muara Port will play a bigger role in moving goods and people between both sides,' he said. After the meeting, MPC brought the TAK Group delegation on a guided tour of its port facilities to showcase its operations and explore how future trade and logistics might run through the port. The MPC is Brunei's main port operator. It is a joint venture between Darussalam Assets Sdn Bhd and Beibu Gulf Holding (Hong Kong) Co Ltd. The company took over full management of Muara Port in July 2018, and has since played a central role in the sultanate's import-export and logistics systems. The Kenyalang Smart City is an ambitious new township in Miri designed to be sustainable, green and technology-driven. It will feature smart infrastructure like intelligent transport systems, renewable energy, and digital public services. In addition to business and residential areas, the city will include cultural and civic hubs such as the Kenyalang Convention and Exhibition Centre (KCEC), a Performing Arts Centre, and a Cultural Heritage Museum. brunei Muara Port Company TAK Group
New Straits Times
3 hours ago
- New Straits Times
Durian frenzy: Over 3 tonnes sold in 12 hours at Domestic Trade southern zone carnival
ISKANDAR PUTERI: More than three tonnes of durian, equivalent to about 2,000 fruits were sold out in 12 hours on the first day of the Rahmah Madani Sale in conjunction with the Domestic Trade and Cost of Living Ministry 2025 Southern Zone Carnival held at Puteri Harbour yesterday. Durian trader Mohd Hairul Mohd Aziz, 43, from Batu Pahat, said the affordable promotional prices ranging from RM25 to RM35 per kg for the premium Musang King variety, compared to the market price of RM40 to RM60 was the main reason for the overwhelming response from visitors. "From 10am to 10pm yesterday alone, we managed to sell almost three tonnes of durian. "Today, we're targeting to sell another four tonnes, insya-Allah," he told Bernama when met at his sales tent at the carnival today. Commenting on the Eat Local Fruits campaign launched yesterday by Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, he described the initiative as a timely move to bring Malaysia's agricultural produce into the spotlight. "Malaysian durians are among the best in the world. "If events like this are organised more often, locals can enjoy premium durians that are usually exported," he said. Mohd Hairul also expressed his support for the expansion of the Rahmah Madani Sale and campaigns to promote local fruits, especially now that some imported fruits are subject to Sales and Services Tax (SST). "This is the best time for us to aggressively promote local fruits. "The quality is excellent and should be the rakyat's first choice," he said. Visitors also welcomed the campaign which offers affordable prices while boosting demand for local agricultural produce. Siti Rubiah Manshor, 51, said local fruits should be the people's top pick, especially in the current economic climate. "It's a shame if local fruits aren't our first choice, while foreigners are scrambling to buy them. "This campaign to eat local fruits is great, but it needs to be implemented consistently," she said. Yesterday, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali launched the Buy Malaysian Goods Campaign (KBBM) 2025, themed 'Jom Beli Lokal' (Let's Buy Local), aimed at expanding the reach of local products and reducing dependence on imported goods. – Bernama
