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THE exemption of Malaysia’s aerospace sector from tariffs is one of the central elements under negotiation in reciprocal trade talks between Malaysia and the United States, according to the Ministry of Investment, Trade and Industry (MITI).
Datuk Hanafi Sakri, Deputy Secretary-General (Industry) at MITI, said the aerospace industry is considered a critical sector, and imposing tariffs would negatively affect both Malaysian and American companies.
“If possible, we want all sectors to be exempted from tariffs in our negotiations with the US,” Benama cited him saying. “However, this depends on how critical the sector is—and for aerospace, if tariffs are imposed, US companies involved in this sector will also be impacted.”
He made the remarks after launching the KarbonMRO hangar and engine services facility, a joint venture between Malaysia’s Dviation Group and Japan’s Marubeni Corporation.
Highlighting the importance of the aerospace industry, Hanafi said Malaysia’s Aerospace Industry Blueprint targets RM55 billion in revenue by 2030. Current estimates place the sector’s earnings at around RM25 billion.
“We need a significant boost to achieve that target, and this KarbonMRO collaboration is one initiative to help aerospace companies scale up,” he said.
Earlier in his speech, Hanafi described the launch of the KarbonMRO hangar as a major step toward strengthening Malaysia’s position as a regional hub for maintenance, repair, and overhaul (MRO) services.
“In an industry driven by innovation, efficiency and technical excellence, such investments contribute to long-term economic growth and national competitiveness,” he said.
He added that the expansion of KarbonMRO and the establishment of its engine services arm align with national objectives.
“This joint venture between Dviation Group and Marubeni Corporation reflects the importance of cross-border collaboration in advancing technological expertise and global best practices,” he said.
“Such partnerships ensure Malaysia continues to attract high-value investments and enhance its aerospace supply chain.”
According to analysis by NAVEO Consultancy, the Asia-Pacific region and China currently account for about 37 percent of global commercial aviation contract value, with over 5,200 aircraft on order or under option. - May 8, 2025
