KUALA LUMPUR, Oct 9 — Selangor is strengthening collaboration with neighbouring states to accelerate the growth of Malaysia’s aerospace industry, with a focus on financial readiness and innovation-driven talent development.
Selangor Aviation and Technology Innovation (Selati) chief executive officer Zannifa Azura Ahmad said financial sustainability is key to support long-term investment in aerospace and aviation — sectors known for heavy capital needs but strong returns.
“No matter how much you promote, if you don’t have the financial readiness, it won’t move,” she said during the Regional Leadership in Aerospace and Industrial Growth forum at the Selangor Asean Business Conference (SABC), held in conjunction with the Selangor International Business Summit (SIBS) 2025 at the Kuala Lumpur Convention Centre here yesterday.
“That’s why (for) Selangor’s aerospace, we are working with one of the financial institutions under a financial sustainability framework to give the state assurance,” she said.
Zannifa said the framework would allow Selangor to compete more effectively nationally and regionally.
On talent development, she said Selangor’s next focus will be on technology, innovation, artificial intelligence (AI), and digitalisation, supported by new financial instruments for industry players.
“This is industry-driven, and we don’t discriminate against local players… We want them to prosper.
“We don’t want to look at physical boundaries anymore. Whatever we propose in Selangor can also be extended to Negeri Sembilan and Melaka. If your mindset is confined within the state, it won’t go anywhere,” she said.
Meanwhile, Malaysian Investment Development Authority (Mida) transport technology division director Noor Suziyanti Saad said Malaysia’s aerospace growth is guided by the Malaysian Aerospace Industry Blueprint and the New Industrial Master Plan 2030 (NIMP), with aerospace identified as one of the main sectors.
She said investors are seeking government facilitation in financing, especially for research and development (R&D) and local talent development.
“Based on our communications with companies and investors, one of the main things they want is facilitation from the government in terms of financing. This is especially for R&D and local talent development,” she said.
To address this, Mida offers tax incentives, investment allowances, and grants under various national development plans. However, Suziyanti acknowledged that small and medium enterprises (SMEs) face challenges as the grants are reimbursement-based, making upfront financing difficult.
She said alternative funding through government-linked companies (GLCs) such as Khazanah Nasional Bhd, Employees’ Provident Fund (EPF), and Retirement Fund (Incorporated) (KWAP) could help bridge the gap, while encouraging domestic conglomerates like DRB-Hicom to reinvest in the sector to boost local participation.
She added that Selangor, Negeri Sembilan, and Melaka would complement each other, with Selangor focusing on maintenance, repair and overhaul (MRO) while the other two boost component manufacturing to reduce the industry’s trade deficit.
“The ecosystem not only covers direct aerospace activities, but also supporting industries such as machinery, equipment, and semiconductors. Most of our semiconductor chips are used in sensors and avionics, areas we can expand further,” she said.
Suziyanti expressed hope that by 2030, Malaysia’s aerospace industry would be as strong and competitive as its semiconductor sector, driven by innovation, financing support, and local talent development.
