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Malaysia’s aerospace industry has transformed from a small and domestically focused sector to a globally recognized industry which is now at number two in South East Asia region.

It has grown significantly and has provided more than 19,000 jobs opportunities - mostly in the MRO and manufacturing sectors with the active participation of our local small and medium-sized enterprises. Total number of companies in operation has reached more than 160. 

The aerospace industry is a high-value industry in Malaysia’s diversified economy. The total revenue generated by this industry currently stood at RM11.8 billion.

By 2030, the industry is projected to contribute revenue of RM20.4 billion for Maintenance, Repair and Overhaul (MRO), RM21.2 billion for aero-manufacturing and RM13.6 billion for engineering and design services.

Malaysian Aerospace Council

The Malaysian Aerospace Council was first established in 2001 and chaired by YAB the Prime Minister. Its objective was to provide overall guidance and direction in the development of the aerospace industry in Malaysia. Its membership consisted of senior Government officials from relevant Ministries and Agencies, and industry representatives. A total of 7 meetings were held between 2001 – 2010. The last meeting of the MAC was in 2010.
In 2015, it was agreed that YBM MITI to chair the Council and MITI to take over the role as the Secretariat from MIGHT. 

Establishment Of NAICO

NAICO has been established in August 2015 as a Unit under MITI. The primary objective of NAICO is to oversee the implementation of the strategies and initiatives in the Blueprint.  NAICO will serve as the focal point in linking the aerospace industry players, relevant Government ministries and agencies, and academia to collectively work together in strengthening the capability and capacity of Malaysia’s aerospace industry.

5 industry-led Technical Working Groups for the 5 Focus Areas stated above have been established under NAICO as a platform for the industry to channel views and input on the development of the industry, share issues and challenges as well as recommend potential solutions.

Focus Area

Maintenance, Repair And Overhaul (MRO)

  • MRO comprises of four main segments of maintenance which is the airframe, engine, component and line. 
  • Globally, total MRO in the air transport space for all aircraft classes is forecast to grow from USD57.7 billion to USD86.8 billion or 4.2% over the next ten years (2014-2024). 
  • Malaysia’s MRO sub-sector’s turnover has grown from RM4.3 billion in 2009 to RM5.3 billion in 2014.
  • The MRO sub-sector is projected to contribute RM8.3 billion in Gross National Income (GNI) by 2020. 


  • This sub-sector covers engineering & design; aero-structure (composites and metallic); engines; and airframe equipment.

  • The aero-structure manufacturing sub-sector’s turnover has expanded from RM0.6 billion in 2009 to RM4 billion in 2014.

  • The engine parts and components manufacturing set its footprint in Malaysia with the investment by SAM Group through its subsidiary Aviatron Sdn. Bhd. to undertake nacelle machined assemblies.

  • Currently, there are about 28 major aero-manufacturing companies in operation in Malaysia.


System Integration

Aerospace systems integration is one of the most demanding disciplines in the industry. It has to go through very stringent tests during its development process to ensure adherence to strict safety standards. Systems are becoming increasingly complex as technology advances. The certification process itself may take many years to complete. Aerospace systems integration just adds another layer of the complexity and requires the most professional partner to complete it successfully.

Systems integration covers the development and testing of a whole host of systems, such as radio navigation, flight management and monitoring applications which include modernisation, upgrade, sustainment, and maintenance and logistics support for a wide variety of aircraft, parts and component and ground systems. The breakdown of Systems Integration is as follows: 


Engineering and Design

By 2020, the global engineering services industry is forecasted to grow up to RM3 trillion. In Malaysia, pure-play engineering companies could be generating up to RM3.5 billion at the same time. Up to 11,500 jobs are projected to be created by 2020 in pure-play engineering, mostly in high income and in high-value engineering sectors like aerospace, where Strand Aerospace Malaysia is spear-heading this growth via Entry Point Project 5 (EPP5) as part of the national Economic Transformation Program (ETP) under the Business Services National Key Economic Areas (NKEA).

Engineering Services, or sometimes referred to as Pure-Play Engineering, comprises a myriad of consulting, engineering and analytical services to support and solve the complex issues and problems that arise in today’s global supply chain environment. Its activities cut across the full product lifecycle spectrum and involve multiple engineering disciplines from mechanical, electrical, civil to highly specialised areas such as aerospace engineering.

Engineering and Design Capabilities

Traning and Education

Malaysia is the leading producer and provider of skilled workforce in the SEA region and is on the right track to remain so for the foreseeable future. It is projected that by the year 2030, Malaysia will be able to produce 50,751 technicians and 15,556 graduates, and 16,746 pilots.

Currently, there are 66 education and training providers in aerospace related programmes in Malaysia comprising 11 DCA approved training organizations (ATO) which impart the training of licensed aircraft maintenance technicians and licensed aircraft maintenance engineers; 11 licensed flying schools for pilot training; 2 Cabin Crew Training Centres; 27 institutions of higher learning that offers bachelor of aerospace, aeronautical, avionics engineering programmes, and diplomas in aircraft maintenance technology, helicopter maintenance, avionics maintenance and composite repair; and 15 technical training academies.

The main focus is on human capital development where training and education plays a big role in developing the industry across the region. Boeing has projected that in the year 2032, the estimated demand for technicians (MRO) and pilots and in SEA will be of 50,300 and 48,100 respectively, from the projected annual growth of 5% rate for technician, graduates and cabin crew, and 7% for pilot.

Human Capital and Research & Technology

Government Initiatives

Aerospace Blueprint 2030

Aerospace Blueprint 2030

Aerospace Strategic Programmes

Contact Us


Resources Center




Capability Matrix




Companies Directory

Companies Directory

Malaysian Aerospace Industry Report 2016-2017

Last Updated 2019-08-19 11:30:38 by Azuna Hasbullah atau Abd Rahman

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