RM16b potential boost from aerospace projects

THE government will implement two Entry Point Projects (EPPs) for the aerospace industry next year, which will boost the economy by RM16 billion and create some 32,000 jobs.

At present, the aerospace industry contributes some RM25 billion to Malaysia's economy.

Science, Technology and Innovation Minister Datuk Seri Ma-ximus Ongkili said the Malaysian Industry-Government Group for High Technology (MIGHT) will be responsible for the projects, which comes under the Economic Transformation Programme.

The first project is an Aerostructure Manufacturing Innovation Centre (AMIC).

It will function as a one-stop centre for research and development related to, among others, the manufacturing of aircraft structure and design.

AMIC will also conduct training courses at Masters and Doctor of Philosophy (PhD) levels in the field of aerospace technology.

The government and foreign partners European aerospace group EADS (the parent company of Eurocopter), Spirit Aerosystems and Rolls Royce, will equally fund the RM40 million needed for AMIC in its first five years.

"We will use existing infrastructure for the new research centre and collaborate with a local university which we will identify later," he told reporters after attending a closed-door Malaysia Aerospace Council meeting at Parliament yesterday.

The high technology focus group meeting was chaired by Prime Minister Datuk Seri Mohd Najib Tun Razak who is also patron of MIGHT.

The three foreign firms will also act as research and technology partners for AMIC.

The second EPP is about how to improve Langkawi International Maritime & Aerospace Exhibition (LIMA) in the future.

Malaysia wants to use the event as an effective platform to promote and market the country's aerospace industry.

"Although the industry was impacted by the global economic crisis, the low-cost carrier and aerospace manufacturing industry continued to show positive growth," Ongkili said.

"The government's strategy to spur the local industry through foreign direct investment projects was positive because it helps by creating smaller local companies to support the projects."

Ongkili revealed that from January 1, 2011, MIGHT would come under the Prime Minister's Department while the Science, Technology and Innovation Ministry would provide it with support.