Malaysia - Investment Performance 2011 - Malaysian Industrial ...

Malaysia’s GDP growth in automotive
is expected to increase at least 5.1 per
cent in 2012 which will also increase
the total industry volume.
Due to the effects of Japan’s earthquake
and tsunami as well as the impact of
the floods in Thailand, the OEMs are
most likely to increase their production
to meet the local demand. In addition,
several new key model launches will
definitely drive forward Malaysia’s
automotive industry in 2012.
The extension of full import duty and
excise duty exemption for hybrid and
electric cars until December 2013
under the 2012 Budget would further
promote greater demand for the energy
efficient and eco-friendly vehicles.
aerospace
The aerospace industry comprises
the aviation and space sub-sectors.
In Malaysia, the aviation sub-sector
encompasses:
• manufacturing of parts and components;
• maintenance, repair and overhaul
(MRO) activities;
• design and development; and
• assembly and operation of light
aircraft and support services.
The aerospace industry in Malaysia which
began with the establishment of MRO
operations back in the 1970s has progressed
into the manufacture of aerospace parts
and components and assembly of light
aircrafts. Currently, there are 12 companies
involved in the manufacture of aircraft
parts and components including ground
support equipment, three companies
involved in assembly activities, while
more than 19 companies are involved
in MRO activities.
Malaysia has a full range of MRO
capabilities which include modification
and remanufacturing of engines and
engine components, repair and overhaul
of aircraft parts, components and
airframes, repair and testing of aircraft
instruments and components and
provision of line and heavy maintenance
to both military and civil aircrafts. Major
MRO companies in Malaysia include
MAS Engineering, GE Engine, AIROD,
Hamilton Sundstrand, Honeywell,
Parker Haniffin and Eurocopter. The
MRO sub-sector is projected to grow
by 12 to 15 per cent annually.
Projects Approved in 2011
In 2011, a total of seven projects were
approved in the aerospace sub-sector
with investments of RM347.2 million.
Foreign investments in these projects
amounted to RM282.6 million or 81per
cent while domestic investments totalled
RM64.6 million (19%). The approved
projects would generate a total of 457
employment opportunities.
A significant project approved in the
aerospace industry is for the production
of the machine aerospace structures by
Malaysia - investMent PerforMance 2011
37