08-07-2025
Malaysia seeks Airbus, Embraer investment in MRO and supply chain
KUALA LUMPUR: Malaysia is pushing for global aircraft manufacturers Airbus and Embraer to establish the country as a key hub for maintenance, repair, and overhaul (MRO) operations, training, and supply chain activities. This follows major aircraft purchase agreements by AirAsia and Malaysia Airlines.
Transport Minister Anthony Loke stated that the government is ensuring these aircraft deals bring broader economic benefits to Malaysia.
'Our strategy ensures these purchases are not one-way transactions. We want investments that boost Malaysia's aerospace sector,' he said during Prime Minister Datuk Seri Anwar Ibrahim's official visit to Brazil.
Loke also proposed that Airbus consider Malaysia as a potential location for a final aircraft assembly line, given the company's backlog of 8,000 undelivered planes. 'Airbus faces supply chain challenges. We hope they expand operations here, creating jobs and strengthening our aerospace industry,' he added.
AirAsia has confirmed an order for Airbus A321XLR long-haul jets worth US$12.25 billion (RM51.72 billion), with deliveries starting in 2028. Meanwhile, Malaysia Airlines' parent company, Malaysia Aviation Group (MAG), has ordered 20 additional A330neo aircraft, bringing its total commitment to 40. Deliveries for the new batch are expected between 2029 and 2031.
Malaysia's aerospace capabilities are already recognized, with Composites Technology Research Malaysia in Melaka producing aircraft components for Airbus and Boeing. Embraer, with nearly 200 E-Jets operating in Asia Pacific, has also drawn interest from AirAsia and Air Borneo. - Bernama
