Malaysia eyes bigger slice of 40,000-plane global aerospace boom

SHAH ALAM: Malaysia is looking to expand its role in the global aerospace supply chain by moving into higher-value maintenance, repair and overhaul (MRO) services as demand for commercial aircraft grows over the next 20 years.

Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said Boeing and Airbus projected that more than 40,000 new commercial aircraft would be needed over the next two decades, up from the existing global fleet of about 35,000.

He said this presents enormous opportunities across the aerospace value chain, not only in aircraft manufacturing and component production, but also in MRO services throughout the operational lifespan of these aircraft.

"Asia-Pacific will continue to play a major role as the region is expected to account for almost half of global demand for new passenger aircraft.

"Malaysia's strategic location, stability and established industrial ecosystem place us in a favourable position to participate in this growth," he said in a keynote address at the Malaysia Aerospace Industry Association's Aerospace Strategic Leadership Conference 2026.

Speaking to reporters after the event, Johari said Malaysia's ability to capture these opportunities would depend on whether its supply chain could adapt to evolving aircraft designs and new technologies.

"If we cannot adapt, or lack the capacity, capabilities and talent to accommodate these changes, we will no longer be a preferred destination.

"We may be a preferred destination now, but if aircraft designs change and new technologies are incorporated into them, we must be able to provide the services required by these major manufacturers. Otherwise, they may no longer choose us as their preferred supplier," he said.

Johari said the education system must also be aligned with industry needs to ensure a steady supply of skilled workers and professionals for the aerospace sector.

Meanwhile, he said the global aerospace industry's long-term outlook remained encouraging as demand for air travel continued to expand, despite significant challenges arising from the ongoing conflict in the Middle East.

Malaysia's aerospace industry has made considerable progress, generating RM32.5 billion in revenue in 2025 and employing about 34,700 skilled workers across more than 300 local and international companies.

Johari said the MRO and aerospace manufacturing segments accounted for about 65 per cent of industry employment and 75 per cent of total revenue.

"We have established capabilities in aerostructures, advanced composites, precision engineering and specialised aircraft and engine components

"Our MRO ecosystem also benefits from Malaysia's location within one of the world's most dynamic aviation regions," he said.

Under the Malaysian Aerospace Industry Blueprint 2030, Malaysia aims to raise annual aerospace industry revenue to RM55.2 billion and become a leading aerospace nation in Southeast Asia.

Johari said investments should strengthen local technological capabilities, create opportunities for Malaysian suppliers and generate higher-paying jobs, rather than being measured by investment figures alone.

"We must continue to strengthen our domestic supply chain and build a more comprehensive industrial ecosystem.

"While many Malaysian companies already possess the relevant technical expertise, we must recognise that participation in this industry requires substantial investment," he said.

Johari said the government is committed to supporting local suppliers in meeting international standards.