Malaysia’s aerospace industry outlook by a leading aerospace hub in Asia

Zulfikri Osman, COO of Asia Aerospace City talks about the aerospace industry in Malaysia.

He said, “Global Aero revenue will touch USD 1.0 trillion in 2020 for the first time in history. Middle class will grow from current 32% to as high as 60% (of world population). This segment defines the next generation of Aviation and the Aircraft industry. The Asian middle class population will grow to a staggering 400% compared to the population today, by 2032. And with the regional businesses and borders opening up, the Asia Pacific region becomes the next frontier for the Aerospace growth. APAC will be leading the world passenger traffic revenue, with almost 40% of the world traffic revenue (RPK) share.

Globally the aerospace & defence industry is forecasted to generate USD1.6 trillion by 2020.

This will lead to the emergence of more Regional airlines and the regional air traffic movement. OEMs will find it profitable to serve the region. Because firstly, the demand for Aircraft will be much higher than that of in any other place. Secondly, managing costs in Asia is becoming increasingly a positive element that helps drive the profitability of the Aircraft manufacturers.

Aside from this, there are also issues. If you look at the books of Boeing and Airbus, there is a backlog of about 7,000 now and this invites questions about their speed of delivery to the market against an increasing demand. And this is after historical record deliveries achieved by both the OEMs in 2014. This tells us that the OEMs need to rapidly evolve technologies to support business strategies (Engineering services, Maintenance, Raw materials) and they need to revaluate their business strategies and leverage on low-cost to make their business sustainable.”

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