malaysian aerospace industry · the etp has targets to be achieved by 2020, while the aerospace...

Copyright M-AeroTech

MALAYSIAN AEROSPACE INDUSTRY Naguib Mohd Nor

President – Malaysian Aerospace Industry Association

CTO – MARA AeroTech

CEO – Strand Aerospace Malaysia Sdn Bhd


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Malaysia is Focused on Aerospace


Aerospace a Major Industry 4.0 Driver For Malaysia

Industry 4.0 facilitates the vision and execution of a "Smart Factory". Within the modular structured Smart Factories of Industry 4.0, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions. Over the Internet of Things, cyber-physical systems communicate and cooperate with each other and with humans in real time, and via the Internet of Services, both internal and cross-organizational services are offered and utilized by participants of the value chain

Modular Tooling for Adaptable Factory

Production

3D Metal Printing Advanced Manufacturing Robotics

Interconnection of Products, Value Chains and Business Models


Manufacturing Global Market Outlook

AEROSPACE INDUSTRY & CLUSTER OUTLOOK:


ICF’s 2015 data shows that the Aerospace Manufacturing and MRO industries are both showing strong

positive trends despite the global economic challenges. The latest information shows some effects of

the challenges faced which has reduced ICF’s RPK growth predictions by 1% from previous.

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Aerospace Industry & Cluster Outlook Summary

AEROSPACE INDUSTRY & CLUSTER OUTLOOK:


UMW Group | MARA Aerotech |

MALAYSIA UPDATE


Farnborough Airshow & Beyond


Selangor Aerospace Council Chaired by MB Selangor. Purpose to drive state level aerospace industry development.

Malaysian Aerospace Council Chaired by Minister MITI. Purpose to drive national level aerospace industry development. Established National Aerospace Coordinating Office (NAICO) and Malaysia Aerospace Industry Association (MAIA) to drive industry growth.

MAC, SAC, NAICO and MAIA

Major challenges highlighted has been

Industry penetration, Technology

competitiveness and Human Capital


MAC, SAC, NAICO and MAIA

• Represent joint interest of industry players

• Represent industry to the Government

• Business development opportunities

• International voice of Malaysian aerospace industry


Pro-tem Committee Members 2016-2017

CTRM – Shamsuddin Mohd Yusof SMEA – David Davies Senior – Kavan Jeet Singh ACM – Daniel Park MBD – Kenny Chang UMW – Megat Shahrul Azmir Safran – Bernard Garcia

President – Naguib Mohd Nor, Strand Aerospace Malaysia Dep. President – Francis Hiew, Spirit Aerosystems Malaysia

Honorary Secretary – Datin Shelina Razaly Wahi, Abdullah Chan & Co

RUAG – David A Jones AAT – Mohd Roslan Ismail GE Aviation – Suresh Shunmugam

Abdullah Chan & Co – Dato Muthanna Abdullah AMIC – Razman Shah Rajab ATSB – Dato’ Dr Ahmad Sabirin Arshad M-AeroTech – Zulfikri Osman


MAIA and the Government Agencies

MAIA NAICO

Industry Requirements Roadmap; Feedback & Recommendations

Manufacturing Engineering

Services MRO

Human Capital Space Systems

Integration

Technical Sub-committees to the Board

Industry Data Collation

RMK11, ETP Policy, Blueprint, Human Capital Roadmap

Industrialization, Catalytic functions

Coordinate industry development at Ministry

level

Responsible for aerospace industry

development

Promotion of Malaysia aerospace; business

matching

Investments and incentives

ETP KPI Monitoring


KPI Target 2015 Actual %

Achieved

EPP5: Engineering

Services RM 78m RM 60m 77%

EPP7: Making

Malaysia the Hub

for the OEMs RM 551m RM 615m 112%

“ The much-coveted aerospace

technology could catapult Malaysia into

the big league of high-tech hubs.

Malaysia's strategic location, with its

modern infrastructure make the country

an enabler in Asia's aerospace sector. ”

Datuk Azman Mahmud

CEO, MIDA

25 Jan 2016, Bernama 12

Recent Developments in Malaysia Aerospace Industry

THE AEROSPACE RACE

Airbus Customer

Services

Malaysia Sdn.

Bhd started

operations.

Jet engine fan

casing

manufacturing

contract

awarded by

Rolls Royce to

UMW.

French

Aerospace

Industry

Association

(GIFAS) opening

a regional office

in Kuala Lumpur.

Tooling Supply

Chain handover

project between

a major OEM

and a local

tooling

manufacturer.

Launch of the

Malaysia

Aerospace

Industry

Association

(MAIA)

ROLLS ROYCE /

UMW AIRBUS GIFAS AIRBUS / SDMK MAIA

Aeropolis: Runway

to Success 2020

Development

MAHB

AEROPOLIS

Feb

2014

Aug

2015

Nov

2015 Feb

2016

Mar

2016

In

progress

Expansion of Spirit

Aerosystems Malaysia

and CTRM.

SPIRIT/CTRM


EPP5

ENGINEERING

SERVICES

EPP1

MRO

EPP7

HUB FOR

OEMs

EPP8

SME

DEVELOPMENT

ECONOMIC TRANFORMATION PROGRAMME

AEROSPACE

BLUEPRINT

ETP and Aerospace Blueprint have the programs and initiatives that will

drive the industries development

Aerospace Industry as a key driver for RMK11 objectives:

1. Malaysia’s transformation into a high-income nation

2. Re-engineering economic growth for competitiveness

3. Harnessing talent

4. Environment and Resource Management

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PEMANDU ETP 2020 Target

EPP1 EPP5

Additional Revenue by 2020

RM 17.4 B RM 4.6 B

Additional Jobs by 2020

21,000 11,500

EPP7

RM 19.6 B

3,368

The ETP has targets to be achieved by 2020, while the Aerospace Blueprint

provides a strategic gateway to position Malaysia as the region’s leading

aerospace hub by 2030. The goals were developed to take advantage of

favorable global market trends.

Asia Aerospace City anchors

many of the above EPP

targets.

Initiatives: ETP, Blueprint & RMK11 MALAYSIA’S WISHLIST



THE AEROSPACE

BLUEPRINT 2030


The Aerospace Blueprint 2030 MALAYSIA’S WISHLIST

5 ultimatums to make Malaysia

competitive:

1) Involvement and

development of local

players in major strategic

projects

1) Industry transformation:

tech users into tech

suppliers through R&T

2) Participation in

international aircraft

development programmes

3) Reduction in foreign

dependency on military

aircraft upgrades

4) Creation of industry focus

areas to have a regional

advantage


The Aerospace Blueprint 2030 MALAYSIA’S WISHLIST



THE ECONOMIC

TRANSFORMATION

PROGRAMME (ETP)


Under the Business Services NKEA, the corresponding Entry Point Projects (EPPs) have been allocated to steer the industry towards achieving the ETP goals as shown in the following table

The ETP MALAYSIA’S WISHLIST

EPP 1 MRO

ADDITIONAL GNI IN 2020 USD 4.2 BN

ADDITIONAL JOBS IN 2020

21,000 JOBS

EPP 5 ENGINEERING SERVICES


ADDITIONAL JOBS IN 2020 11,500 JOBS

EPP 7 OEM HUB



EPP 8 DEVELOPING SMEs IN THE

GLOBAL AEROSPACE MANFACTURING INDUSTRY

ADDITIONAL GNI IN 2020 USD 0.13 B



FUNNEL

FACILITATE

GROW

ECOSYSTEM

EPP5 – Grow Pure Play Engineering to

provide high end engineering

capabilities for Manufacturing and MRO

EPP8 – Create Malaysian Tier 2

downwards supply chain through

growing local champions and

partnerships with global SME’s

EPP7 – Attract OEM/Tier 1’s to make

Malaysia their SEA Hub

EPP1 – Attract major MRO players to

make Malaysia their SEA Hub

The ETP MALAYSIA’S WISHLIST


5 key aero hubs

Global Marketing of Mexican Aero Industry

Govt Subsidies Focused On OEM Business Enablement

State Subsidies Focused On OEM Business Enablement

Tailored

• Free Land

• Training/

Wage grants/

Subs

• Capital grants

• R&D grants

OEM’s as industry growth drivers

Govt funded R&D and Facilities

Industry tailored Human Capital programs

17 - 23% Growth Year on Year +350 Aerospace Companies

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Replicating Mexico Double Digit Growth MALAYSIA’S WISHLIST

Overview & Benchmarking of Malaysia, Mexico and Morocco

North American/Canadian

Market

European Market

Asian Market

Commonalities:

• Similar manufacturing

capabilities and backgrounds

• Traditionally Automotive

and Oil & Gas

• Build to Print going

towards Design and Build

• Targeting between 1 to 2% of

global market share each

• Developing Future R&D

Capabilities

• Upgrading Human Capital from

Build to Print to Design and Build

• +300 aero manufacturers

• Strong OEM presence


• Strong OEM presence


• Emerging OEM presence MAIA Synergies:

• Serving distinct OEM focus

regions

• Cross market access and Joint

Ventures

• Collaborate on OEM facilitation

strategies

• Collaborate on Human Capital

Development

• Collaborate on Research &

Development

• Collaborate on Cluster

Development

Mexico, Malaysia and Morocco are the focus of OEM’s in their internationalization strategies. All are targeting exponential

growth in the next few years to grab current growth requirements of OEM’s.


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Catalysing an Ecosystem Through OEM Engagement

Copyright M-AeroTech Professional Development Centre


MALAYSIA’S

COMPETITIVENESS


18768

9625

5273 4925

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

France Singapore Mexico Malaysia

Mo

nth

ly S

alar

y (R

M)

Country

Average Aerospace Technology Manufacturing Monthly Salary Comparison

• Malaysia is 7% cheaper than Mexico on average

• Aerospace Technology Manufacturing includes Salaries from Engineers, and

Technicians.

Source: Payscale Inc, Seattle, Washington, U.S.A

Currency Conversions Used

(1/2/2016)

Currency

Value of single

currency unit

(RM)

Euro (EUR) 4.51

Singapore

Dollar (SGD) 2.92

Mexican Peso

(MXN) 0.23

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Comparison of Aerospace Manufacturing Wages between Selected Countries

MALAYSIA’S READINESS


TIER 1s

TIER 2s

TIER 3s

TIER 4s

TIER 5s

OEMs HELICOPTERS

HELICOPTERS

Operators

MRO,

Servicing

Education,

Training,

Simulation

Logistic

Test and

Evaluation

Engineering

And Design

MULTI

-TIER

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Aerospace Supply Chain in Malaysia

MALAYSIA’S READINESS

malaysian aerospace industry · the etp has targets to be achieved by 2020, while the aerospace...

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