Malaysia targets higher-value aerospace services and RM55.2 billion revenue

Malaysia aims to expand into higher-value aircraft maintenance, repair and overhaul (MRO) services, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said. Its Malaysian Aerospace Industry Blueprint 2030 targets RM55.2 billion in annual aerospace revenue and a position among Southeast Asia's leading aerospace nations.

Johari addressed the Aerospace Strategic Leadership Conference 2026, organised by the Malaysia Aerospace Industry Association, in Shah Alam. He said investment should deliver stronger domestic technology, opportunities for Malaysian suppliers and higher-paying employment, rather than be judged solely by its monetary value.

Citing projections from Boeing and Airbus, Johari said demand would exceed 40,000 new commercial aircraft during the coming two decades. The existing worldwide fleet comprises about 35,000 aircraft. Asia-Pacific is expected to generate almost half the global demand for new passenger aircraft, he said.

Malaysia's aerospace revenue reached RM32.5 billion in 2025. More than 300 domestic and international companies employed about 34,700 skilled workers. Johari said manufacturing and MRO contributed about 65 per cent of the sector's employment and 75 per cent of its revenue.

In remarks to reporters, Johari warned that suppliers risked losing manufacturers' business if they could not respond to changing designs and technologies. He called for education to meet aerospace employers' needs and said the government remained committed to assisting local suppliers with international standards.