Malaysia should localise more aircraft component MRO work to cut costs and build aerospace ecosystem, industry body says

Malaysia should localise a greater share of aircraft component maintenance, repair and overhaul (MRO) activities to shorten turnaround times, lower costs and improve competitiveness, according to the National Aerospace Industry Coordinating Office (NAICO). NAICO chief Shamsul said most engine components are currently shipped out of Malaysia for servicing or repair, and that the country should attract more local companies and foreign SMEs operating in Malaysia to fill that gap, while acknowledging not every repair type could be performed locally.

Shamsul said the MRO sector's growth, particularly in engine and component maintenance, represented an opportunity to deepen Malaysia's aerospace ecosystem by developing companies to support major MRO players, and that advanced technologies including composite repair, 3D printing, advanced machining, automation and robotics should form part of the sector's next development phase rather than relying predominantly on traditional hands-on processes.

NAICO projects the expansion of MRO and aerospace manufacturing will require approximately 18,000 additional workers over the next five years, with future workers needing capabilities in programming, process redesign and technologies such as AI, IoT and analytical tools beyond conventional technical skills.

Selangor accounts for close to 70 per cent of Malaysia's aerospace activities, concentrated in Kuala Lumpur, Cyberjaya and Sepang. Shamsul said developing facilities and infrastructure, including the regeneration of Subang Airport and new aerospace hubs in Sepang and Subang, would be critical to attracting higher-value investment and building an integrated aerospace cluster, with the long-term objective of a complete ecosystem where aerospace companies can source more services locally.