Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : BERJAYA LANGKAWI BEACH RESORT,
LANGKAWI, KEDAH
Tarikh/Date : 05/12/95
Tajuk/Title : THE LIMA `95 INTERNATIONAL
AEROSPACE CONFERENCE
"The Malaysian Aerospace Industry: Its Strategy
Towards Global Competitiveness"
It is indeed a pleasure for me to be with you this
morning. I would like to thank the Asian Strategy and
Leadership Institute (ASLI) and Le Proton Lima Sdn Bhd, the
joint organisers of the LIMA International Aerospace
Conference 1995, for inviting me today to officiate the
opening of this conference.
2. I am honoured to be present among the distinguished
personalities consisting of captains of industries and
senior Government officials from not only the region but
also from Australia, Britain, France and the United States
who shall be sharing their insights and experiences with
participants at this conference. This conference is indeed
a new and welcome addition to the LIMA programme of
exhibitions and air-shows.
3. The Malaysian Government accords priority to the LIMA
Exhibition and Conference because we are keen to develop our
aerospace industry. The aerospace industry is one of the
new frontiers for Malaysia. We have successfully ventured
into the automotive and electronics industries and we
believe we can do likewise with the aerospace industry.
Developing an aerospace industry for Malaysia would help
complete the transformation of the Malaysian economy as
envisaged in Vision 2020.
4. Vision 2020 has laid out a target for Malaysia to
become a developed nation by the year 2020. This shared
vision stresses that Malaysia should not only be developed
economically, but also politically, socially, spiritually,
psychologically and culturally. What is more important is
that, in our efforts towards becoming a developed nation, we
want to also create a scientific society; one that is able
to keep abreast of technological developments.
5. Malaysia wishes to be a player in the aerospace
industry. While the aviation market contributes to an
estimated 1.2 billion passengers and 20 million tonnes of
freight last year, with a turnover of US$250 billion, the
aerospace industry, on the other hand, has a world-wide
annual turnover of US$20 billion.
6. The demand for aircraft in the Asia Pacific region by
the year 2015 is estimated to make up a quarter of the
global demand. This has put Asia in a strong position to
propagate the continuous development of the aerospace
industry. Even our own Malaysia Airlines is in the market
for new aircrafts.
7. In aviation infrastructure development, Asia has
established itself as a focal point of aerospace and
aviation activities with many nations embarking on multi
billion dollar airport projects. A case in point is the new
Kuala Lumpur International Airport (KLIA) in Sepang. The
KLIA is designed to be a modern airport city that is
harmonious with its environment. We envisage the KLIA to be
one of the better and more advanced airports in the world.
It will truly be a pride of Malaysia. This airport
development project will enable aerospace companies,
airlines and any other relevant and supporting industries,
to locate their regional headquarters there.
8. In this regard, Malaysia must establish the necessary
framework to accelerate its industrialisation process in the
aerospace industry. With the Malaysian economy anticipated
to continue growing at over 7 percent per annum until the
year 2020, the aerospace and aviation industry is seen as a
critical sector which offers abundant opportunities for the
transfer of advanced technologies in engineering,
electronics, composite materials as well as manufacturing
and system integration. Malaysia welcomes the world's
leading aerospace and aviation companies to take advantage
of Malaysian infrastructure and other facilities in order to
serve the Asean region. The business-friendly Government
will always adopt a pro-active and flexible approach to
promote the growth of the aerospace industry.
9. In its effort to develop the nation's aerospace
industry, the Government is willing to give reasonable
support and incentives to encourage interested parties to
embark on this high technology industry. The Government is
also willing and has been investing heavily in
infrastructure projects which will facilitate the local
aerospace and aviation industry.
10. The Malaysian Government is committed to the
development of an aerospace industry. The rationales for
having a fully developed aerospace industry are as follows:-
a. The aerospace industry will have numerous indirect
benefits in line with Malaysia's Development
Strategy. There are linkages and spin-offs which
can contribute to our industrialising process.
b. The adoption and utilisation of advanced
technology in aerospace encourages and facilitates
technical innovation and competition which in turn
encourages higher productivity and improves
quality standards of products. Other industries
will benefit from the technology and productivity.
c. The individual earnings of its workforce will be
enhanced as it acquires greater skills and
competence in modern technology.
d. Aerospace products and services which cater for
the foreign market will generate foreign exchange
and increase exports.
e. When the new Kuala Lumpur International Airport in
Sepang is opened, the present airport at Subang
will provide a very good site indeed for all kinds
of aerospace industries and activities.
11. The aerospace industry in Malaysia is neither in its
infancy nor is it mature yet. The level of technology in
Malaysia consists only of aircraft repairs and limited
re-manufacturing of parts and components. Malaysia's
aerospace industry has only managed to reach the support
stage and has yet to get to the production stage primarily
due to the absence of necessary transfer of technology.
12. I believe that there is a need to strengthen the
following areas:-
a. The consolidation of the current local aerospace
industry structure in order to achieve synergy
among local aerospace major players;
b. Establishing the KLIA Sepang into a regional hub
in order to attract airlines and support
industries to relocate their activities to Sepang;
and
c. Encouraging local SMIs and existing vendors
particularly in the automotive, oil and gas and
other high technology industries to participate in
a national vendor development program me for
aerospace.
13. For these reasons, the Malaysian Industry-Government
Group for High Technology (MIGHT) has been established to
promote Malaysia's entry into the aerospace and aviation
industry. One of the roles of MIGHT is to prepare the
national strategic plan for the aerospace industry. The
process of building the national strategic plan, began in
February this year, has already entered its final stages.
With the "blueprint" of the strategic plan, it is hoped that
the strategic plan will help construct a truly consolidated
aerospace industry in Malaysia. The Government therefore
welcomes the views and inputs of the private sector,
particularly those attending this conference. They will be
factored into our long-range strategic plans.
14. The global trend in civil aviation and continuing
demand for international travel and freight will fuel the
growth of the global aerospace and aviation industry.
However, although the cold war has ended, the so-called
peace dividend has not yet resulted in any significant
decrease of global armaments trade. Military aviation will
continue to lead technological innovations in the aerospace
industry as nations build their defence deterrence and
invest in new military aircrafts. Southeast Asia, being in
the centre of a rapidly growing region, offers vast
opportunities for the manufacture of military aircrafts and
defence equipment. Malaysia is also upgrading its own
defence capability and is investing in new aircrafts and
equipment for our defence forces. There is therefore room
for foreign investors to come into the Malaysian market.
However it is hoped that there is sincerity in helping us
develop our aerospace industry through off-set programmes
and transfer of technology.
15. Let me, however, assure our neighbours that we are no
threat to anyone. We in Asean are peace-loving people
preferring dialogues to threats, cooperation rather than
confrontation, and peace and stability, instead of
hostilities and uncertainties.
16. On this note, I am pleased to officially declare open
this conference.
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