Rio de janeiro: Malaysia is urging aircraft suppliers such as Airbus and Embraer to establish the country as a hub for maintenance, repair, and overhaul (MRO), training, and supply chain activities, contingent upon the realization of agreements for aircraft purchases by AirAsia and Malaysia Airlines. Transport Minister Anthony Loke emphasized that the government is keen to ensure these acquisitions also bring investment benefits to Malaysia.
According to BERNAMA News Agency, Loke stated that alongside discussions on potential aircraft purchases, the government aims to leverage such deals to boost the aerospace sector. This approach is part of a broader strategy to ensure that purchases are reciprocal, benefiting Malaysia by attracting investment in the aerospace industry. He highlighted the importance of Malaysian airlines diversifying their purchasing strategies, including Malaysia Airlines’ move to not rely solely on a single supplier.
The Malaysian government has also proposed that France consider Malaysia for a ‘final assembly line’ for aircraft, as Airbus faces a backlog of approximately 8,000 undelivered aircraft due to supply chain challenges. Loke expressed hope that Airbus would invest in Malaysia to enhance the supply chain and consider the country as an aircraft assembly destination.
Should these plans materialize, Malaysia’s aerospace sector would experience significant growth, providing job opportunities for locals. Loke described these efforts as part of “aviation diplomacy,” with Prime Minister Datuk Seri Anwar Ibrahim engaging directly with the French President and Airbus management during his official visit to Italy, France, and Brazil.
AirAsia has already committed to purchasing Airbus 321XLR long-haul aircraft valued at US$12.25 billion, with deliveries slated for 2028. Meanwhile, Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has exercised purchase rights for 20 additional A330neo aircraft, building on its initial 2022 commitment. This will bring MAG’s total A330neo commitment to 40 aircraft.
Loke noted that Airbus already operates in Malaysia with an MRO and training center, including an Airbus Helicopter training base in Subang. However, the government is advocating for an expansion of these operations.
Additionally, Composites Technology Research Malaysia Sdn Bhd in Melaka has gained recognition from leading airlines like Airbus and Boeing for producing critical components. Meanwhile, Embraer, with nearly 20 operators in the Asia Pacific and around 200 E-Jets, has drawn interest from airlines such as AirAsia and Air Borneo, following discussions between Anwar and Embraer’s CEO.