Malaysia seeking tariff relief from the US for key aerospace industries
SHAH ALAM: Malaysia is in negotiations to exempt key aerospace industries, such as maintenance, repair, and overhaul (MRO), from United States tariffs.
Investment, Trade and Industry (MITI) deputy secretary-general (Industry) Datuk Hanafi Sakri said that the imposition of tariffs would affect both local and US aerospace companies.
'We are negotiating to ensure key aerospace industries are exempted from the US tariffs. Ideally, we would want everything exempted, but the priority is ensuring this critical sector remains competitive.
'For the aerospace sector, if tariffs are imposed, US companies (in the aerospace sector) would also be affected,' he said during the launch of KarbonMRO Services Sdn Bhd's new aircraft and engine maintenance facility at Subang Airport's Skypark Regional Aviation Centre today.
The MRO facility is a joint venture between local firm Dviation Group and Japan's Marubeni Corporation.
Hanafi emphasised that the Malaysian Aerospace Industry Blueprint targets the industry to generate RM55 billion in revenue by 2030, and the country needs significant momentum to reach that goal.
'The industry's current revenue is estimated at around RM25 billion, and we need several leaps forward. This collaboration with KarbonMRO is one of the initiatives to help aerospace companies grow,' he noted.
Earlier, Hanafi stated that the event marks a significant step forward in strengthening Malaysia's position as a regional hub for MRO services.
'In an industry where innovation, efficiency, and technical excellence drive progress, investments like this contribute to the nation's long-term economic growth and competitiveness,' he said.
Hanafi highlighted that the expansion of KarbonMRO and the establishment of its new Karbon Engine Services (KES) are well aligned with national ambitions.
KES offers comprehensive airframe and engine services, including scheduled maintenance, structural repairs, aircraft teardown, and preservation.
'This joint venture between Dviation Group and Marubeni Corporation reflects the importance of cross-border collaboration in advancing technological expertise and global best practices. Such partnerships help ensure that Malaysia continues to attract high-value investments and reinforce its aerospace supply chain,' he said.
According to industry analysis by NAVEO Consultancy, the Asia-Pacific region and China account for approximately 37 per cent of the current air transport orderbook, with more than 5,200 aircraft on order or option.
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