Malaysia targets bigger aerospace role after $192m Farnborough sales boost
Malaysia is accelerating efforts to establish itself as one of Southeast Asia’s leading aerospace hubs, targeting significant growth in manufacturing, maintenance and international exports by the end of the decade.
Speaking to Aerospace Global News at Farnborough International Airshow 2026, Dato’ Abu Bakar Yusof, CEO of the Malaysia External Trade Development Corporation (MATRADE), said the government had set ambitious targets for the development of the country’s aerospace and MRO sectors.
The strategy is built around the Malaysia Aerospace Industry Blueprint 2030, which aims to position Malaysia as Southeast Asia’s leading aerospace nation and a more significant participant in the global aerospace supply chain.
“Our Malaysian government has a very ambitious target with regard to the development of aerospace and MRO industry in Malaysia,” Abu Bakar told AGN, describing Farnborough as an opportunity to connect Malaysian manufacturers and service providers with major international aerospace players.
Malaysia’s aerospace industry targets RM55.2 billion by 2030
Malaysia’s aerospace industry generated RM32.5 billion ($7.9 billion) in revenue during 2025, according to MATRADE, with exports accounting for RM7.95 billion ($1.93 billion), or 24.5% of the total.
The MAIB 2030 target is RM55.2 billion ($13.4 billion) in annual industry revenue, meaning the sector will need to expand substantially over the remainder of the decade.
The blueprint divides that opportunity across several major areas. Earlier government projections put the 2030 revenue target at RM20.4 billion ($4.96 billion) from MRO, RM21.2 billion ($5.15 billion) from aerospace manufacturing and RM13.6 billion ($3.31 billion) from engineering and design services, alongside the creation of more than 32,000 high-income jobs.
MRO is particularly important to Malaysia’s ambitions. The country is targeting 5% of the global MRO market and as much as 50% of Southeast Asia’s MRO activity by 2030, taking advantage of growing airline fleets and demand for maintenance capacity across the Asia-Pacific region.
But Malaysia is also trying to move further up the manufacturing value chain. Investment efforts are increasingly focused on advanced aerostructures, engine components and digitally enabled MRO, supported by aerospace clusters in Selangor, Johor and Penang. The sector attracted around RM1.5 billion ($365 million) in approved investment during 2024 alone.
Farnborough Airshow provides a route into global supply chains
Farnborough International Airshow is an important part of the strategy, not simply an opportunity to showcase the Malaysian flag.
The Malaysia Pavilion brought 15 exhibitors to FIA 2026, covering areas from aerostructures and precision machining to aerospace finishing, electronics, MRO and aviation services. MATRADE also used the show for business matching, supply chain discussions and meetings with international aerospace companies.
Abu Bakar told AGN that the objective was to create a bridge between those domestic businesses and larger international players.
“We will organise some business meeting engagements as well as seminars and pitching sessions for them to showcase their capabilities,” he said. “FIA is a platform for us to bridge the potential collaboration between the Malaysian companies, Malaysian exhibitors and also all the major players in the world in the aerospace and MRO industries.”
Those meetings appear to have delivered results.
MATRADE said following the show that, following 148 business meetings between Malaysian companies and international aerospace stakeholders, Malaysia had generated RM791.54 million ($192.36 million) in export sales at FIA 2026.
That compares with RM635.9 million ($154.5 million) in potential sales and 132 business meetings at Farnborough in 2024, suggesting Malaysia is building momentum as it seeks a larger share of an aerospace supply chain increasingly looking towards Asia for manufacturing, engineering and maintenance capacity.
