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Selangor Aerospace Action Plan 2020-2030

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Selangor Aerospace Action Plan 2020-2030 SELANGOR AEROSPACE ACTION PLAN 2020 - 2030 FINAL REPORT STUDY TO PREPARE ACTION PLAN FOR SELANGOR AEROSPACE CLUSTER Deliverable Acceptance Sheet PREPARED BY: Name of Deliverable: Final Report Version: V2 This report is the final action plan document which contains information on the aerospace industry’s current status in Selangor, the issues faced by aerospace companies, recommendations to resolve such issues and a consolidated action plan composed of high impact programs that has been developed from global best practices as well as Description of understanding of local business environment. This document Deliverables: has been prepared through a series of deliberations in the form of workshops with aerospace industry participants as well as government agencies to come up with possible interventions and identify various types of assistance that can be offered by government agencies to promote the aerospace industry in Selangor, Malaysia. Prepared By: Frost & Sullivan GIC Malaysia Sdn. Bhd. Signature: Date: October 2019 COMMENTS SIGN OFF BY: Name Designation Client Invest Selangor Berhad Signature Date: 2 STUDY TO PREPARE ACTION PLAN FOR SELANGOR AEROSPACE CLUSTER Table of Contents 1 Executive Summary ........................................................................................................... 12 2 Action Plan Considerations ................................................................................................ 14 2.1 Background................................................................................................................. 14 2.2 Action Plan Concept ................................................................................................... 15 2.3 Guiding Principles ....................................................................................................... 16 2.4Key Action Plan Segments and Items ......................................................................... 17 2.4.1 Aerospace MRO .................................................................................................. 17 2.4.1.1 Current State Assessment ............................................................................ 17 2.4.1.2 Issues Affecting Aerospace MRO Players (Voice of Industry Players) .......... 21 2.4.1.3 Action Plan Items (Solutions to issues in the MRO Industry) ......................... 23 2.4.2 Aerospace Manufacturing .................................................................................... 26 2.4.2.1 Current State Assessment ............................................................................ 26 2.4.2.2 Issues Affecting Aerospace Manufacturing Players (Voice of Industry Players) 33 2.4.2.3 Action Plan Items (Solutions to issues in the Manufacturing Industry) ........... 35 2.4.3 Systems Integration, Engineering and Design Services Players .......................... 37 2.4.3.1 Current State Assessment ............................................................................ 37 2.4.3.2 Issues Affecting Systems Integration, Engineering and Design Services Players (Voice of Industry Players) ................................................................................. 41 2.4.3.3 Action Plan Items (Solutions to issues in the SI, Engineering & Design Industry) 42 2.4.4 Aerospace Training and Education ...................................................................... 45 3 STUDY TO PREPARE ACTION PLAN FOR SELANGOR AEROSPACE CLUSTER 2.4.4.1 Current State Assessment ............................................................................ 45 2.4.4.2 Issues Affecting Aerospace Training and Education Players (Voice of Industry Players) 48 2.4.4.3 Action Plan Items (Solutions to issues in the Training & Education Industry) 49 2.4.5 Other Issues Affecting Multiple Aerospace Verticals ............................................ 51 2.4.5.1 Other Issues Affecting Aerospace Players (Voice of Industry Players) .......... 52 2.4.5.2 Action Plan Items (Solutions to issues in the Industry) .................................. 54 2.5Action Plan Items (High Impact Programs) – Best Practices ....................................... 56 2.5.1 Summary of Action Plan Items ............................................................................. 56 2.5.2 Action Item – Case Studies .................................................................................. 58 2.5.2.1 Regulatory Changes ..................................................................................... 58 2.5.2.2 Bilateral Aviation Safety Agreements ............................................................ 59 2.5.2.3 Certification Support Program for SMEs ....................................................... 59 2.5.2.4 Investment Grants ........................................................................................ 60 2.5.2.5 Offset Policy Development ............................................................................ 60 2.5.2.6 Export Finance Support ................................................................................ 61 2.5.2.7 Equipment Purchase Funding for SMEs ....................................................... 61 2.5.2.8 Aerospace Park Development ...................................................................... 61 2.5.2.9 Aerospace Industry Market Development Initiative ....................................... 62 2.5.2.10 Selangor Export Promotion Agency .............................................................. 63 2.5.2.11 Investment in Research and Development Program ..................................... 63 2.5.2.12 Tax Credit for Research & Development ....................................................... 63 2.5.2.13 Research Co-ordination Council ................................................................... 64 4 STUDY TO PREPARE ACTION PLAN FOR SELANGOR AEROSPACE CLUSTER 2.5.2.14 Aerospace Supply Chain Enhancement Fund ............................................... 64 2.5.2.15 Aerospace Skills Council .............................................................................. 65 2.5.2.16 Student Internship Program .......................................................................... 65 2.5.2.17 Government Funded Training Program ......................................................... 66 2.5.2.18 Hiring Grants for SMEs ................................................................................. 66 2.5.2.19 Aerospace Talent Portal ............................................................................... 67 2.5.2.20 Drone City Concept ...................................................................................... 67 2.5.2.21 General Aviation City .................................................................................... 68 3 Current Involvement of State and Federal Agencies in Aerospace Industry ....................... 70 3.1 Ministry of Transport (MOT) ........................................................................................ 70 3.2 Civil Aviation Authority of Malaysia (CAAM) ................................................................ 71 3.3 The Malaysian Aviation Commission (MAVCOM) ....................................................... 72 3.4 The Malaysian Industry-Government Group for High Technology (MIGHT) ................ 73 3.5 National Aerospace Industry Coordinating Office (NAICO) ......................................... 74 3.6 Malaysian Investment Development Authority (MIDA) ................................................ 74 3.7 Malaysia External Trade Development Corporation (MATRADE) ................................ 75 3.8 Malaysia Aerospace Industry Association (MAIA) ....................................................... 76 4 Implementation Considerations .......................................................................................... 78 4.1 Governance Structure for implementation ................................................................... 78 4.2 Consolidated Action Plan ............................................................................................ 79 5 Appendices ........................................................................................................................ 80 5.1 Progress Update ......................................................................................................... 80 5 STUDY TO PREPARE ACTION PLAN FOR SELANGOR AEROSPACE CLUSTER 5.2 Workshop 1 – Developer (UMW and MAHB) .............................................................. 81 5.2.1 Session with UMW ............................................................................................... 81 5.2.2 Session with MAHB ............................................................................................. 83 5.3 Workshop 2 – Industry players .................................................................................... 87 5.4 Workshop 3 & 4: Federal and state agencies .............................................................. 91 5.5 FGD with Aerospace MRO .......................................................................................... 92 5.6 FGD with Aerospace Manufacturing ........................................................................... 93 5.7 FGD with System Integrations, Engineering and Design Services .............................. 93 5.8 FGD with Aerospace Training and Education .............................................................. 94 5.9 Workshop 5: Review and feedback from executive committee .................................... 94 5.10 Workshop 6: Selangor
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