MNCs Capitalising On Asia-Pasific Aerospace Supply Chain - MIDA

KUALA LUMPUR, April 27 (Bernama) -- Multinational companies (MNCs) are capitalising on the opportunities presented by the aerospace supply chain within the region, following a huge growth in Asia-Pacific towards the industry. Malaysian Investment Development Authority (MIDA) deputy chief executive officer Phang Ah Tong said currently some MNCs were sourcing close to five per cent of the parts in Europe and only between three and four per cent in Asia. He said these MNCs planned to increase sourcing up to 20 per cent and reduce the share in Europe as the parts are competitively-priced here. Malaysia's total exports of aerospace-related products in 2014 rose by 15.7 per cent to US$879 million (RM2.9 billion), mainly contributed by aircraft parts and components, propellers and rotor and air combat simulators, he added. "That is why we are enhancing the supply chain here as Malaysia has the capabilities," Phang told reporters on the sidelines of the Kuala Lumpur International Aerospace Business Convention (KLIABC) 2015, here Monday. The KLIABC 2015, jointly organised by the Malaysia External Trade Development Corp and French-based ABE Aerospace France, aims to showcase the capabilities of Malaysian companies in the aerospace sector to international players. Phang said the MNCs were looking at this region as they could not meet their needs in existing markets, namely the US and Europe. "They are excited and we are seeing a lot of interest from MNCs on Malaysia for its visibility, compared with other countries in the region," he said, adding that MIDA was negotiating several large projects. "What we really need to do is to enhance the ecosystem with aerospace parks, human capital -- designers and engineering capabilities -- to create enablers," he said, adding that he was confident that Malaysia would be able to position itself to meet the targets set in the National Aerospace Blueprint 2030. Meanwhile, Matrade chief executive officer Dr Wong Lai Sum said it was important for Malaysia to move up the value chain in the aerospace industry. "One critical factor is determining which part of the supply chain Malaysians want to be in and the need to pair up with technology partner to go ahead and create a niche inside the supply chain. "In this respect, investments, domestic or foreign are very important," she said. -- BERNAMA