In sectors like aerospace - such as Malaysia's MyAeroSatu initiative - indigenous Small and Medium Enterprises (SMEs) often lack the individual scale to win tier-1 contracts. Grouping them into a consortium fundamentally transforms their market capabilities. Aggregating capacity through combines fragmented manufacturing lines to achieve the massive production volumes as required by global aerospace companies. Securing large contracts qualifies the group for high-value international tenders that individual SMEs are legally or financially too small to bid for. Consortium can share R&D costs by pooling financial resources to fund expensive technology adoptions, digital twins, and advance automation. Thus, mitigating risk by distributing financial, legal & operational liabilities across multiple member companies rather than a single entity. The result will enhance bargaining power to command significantly better pricing and bulk discounts when purchasing raw materials like aerospace-grade titanium or specialized electronics. Concurrently, streamlines the process of achieving expensive, stringent global standards under a single, MyAeroSatu compliance umbrella.
The above comparative impact: Individual SME vs. Consortium was resolved at the follow-up meeting between MyAeroSatu Committee and Turkish Aerospace Malaysia (TUSAS) management in Cyberjaya. We realized the conflicting business cultures among individual SMES can cause decision-making deadlocks, and disputes often arise over the equitable distribution of profits and work share. As such, under the a joint steering committee and project team management of MyAeroSatu, clear legal frameworks can be provided to protect propriety trade secrets when collaborating.
MyAeroSatu Chairman, Professor Dr. Haji Zulkifly Baharom, said “Apart from outlining the importance consortium of SMEs in different setups, our meeting also establishes how new-age teams have achieved the impossible in a plethora of aerospace sectors. So, we get ready to unravel the significance of our project team management in achieving collective goals for consortium partners.”
Prof Zul, an experienced management educator, added “Be it nation-building, the making of a winning sports team or exploring the aerospace, teams are crucial to individual and collective success.”
Zulkifly Baharom (hajizul50@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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