Aerospace & Defense Exporter Alert, Apr. 2024
April 2024
Welcome to the Aerospace & Defense Exporter Alert brought to you by the U.S. Department of Commerce’s, Industry & Analysis-Aerospace Office and U.S. Commercial Service.
Each edition highlights an important aerospace and defense market, industry policy and our signature events. We also include tools to export such as export statistics, market research, trade events and U.S. government advocacy.
Our mission is to increase U.S. exports, enhance job creation, strengthen national security, promote and protect U.S. commercial interests abroad, and deliver customized solutions to ensure that U.S. businesses compete and win in the global marketplace. Contact us to find your local International Trade Specialist.
Market of the Month, Malaysia
Overview
The Malaysian security and defense sector offers opportunities for U.S. exporters. As with other ASEAN countries, Malaysia has territorial disputes with China and neighboring countries. The government also faces trafficking, piracy, and militants operating in the broader region. Protecting its maritime security is critical for Malaysia given its offshore economic assets and heavy reliance on sea trade.
Most procurements in aerospace and defense rely on imported products, as Malaysian manufacturers cannot yet produce the technologically advanced equipment required. The Malaysian Armed Forces (MAF) asset modernization has been progressing with the release of the country’s first Defense White Paper in 2020. That document emphasizes the need to boost Malaysia’s naval capabilities to prepare for possible conflict in the South China Sea and focuses on developing a modernized “smart army” using cyberspace technology and state-of-the-art systems.
With the ongoing defense modernization programs, opportunities exist across the entire security and defense sectors.
Aerospace
Malaysia launched the Malaysian Aerospace Industry Blueprint 2030, an initiative to position Malaysia as Southeast Asia’s most significant aerospace market.
Malaysia is currently home to more than 200 international and local aerospace companies. The demand for civil aerospace services and equipment continues to recover in the post-pandemic environment as air travel picks up with the reopening of borders.
Defense
In its latest budget, the government of Malaysia increased its allocation for defense and security to strengthen the level of defense readiness and national security. The recently announced 2024 budget includes $4.2 billion for the Ministry of Defense (MoD), a 10 percent increase from 2023. In addition to the MoD allocation, Malaysia’s Ministry of Home Affairs, which is responsible for public order, border and maritime security, crime, and terrorism prevention, has been allocated $4.1 billion.
With the increased allocation, Malaysia has identified acquisitions of particular importance, which include various types of vehicles for the Army, helicopters for the Royal Malaysian Air Force, and littoral mission ships for the Royal Malaysian Navy.
Procurement spending increasingly focuses on strengthening Malaysia’s ability to protect its coasts, territorial waters, offshore economic interests, and airspace and developing its intelligence, surveillance, and reconnaissance capability.
Upcoming Events
Defense Service Asia Exhibition and Conference (DSA) 2024
Hosted and co-organized by the Malaysian Ministry of Defense and Ministry of Home Affairs, DSA is one of the biggest Defense and Homeland Security shows in Asia showcasing advanced technologies, systems, hardware, and electronic warfare. The event will take place in Kuala Lumpur from May 06-09, 2024.
Langkawi International Maritime and Aerospace Exhibition (LIMA) 2025
This biennial event is one of the largest maritime and aerospace exhibitions in Asia Pacific which includes both the defense and commercial sector. The event will be held in Langkawi in 2025, with the date to be confirmed.
Contact Information
Siau Wei PUNG, Senior Commercial Specialist
U.S. Embassy – Malaysia
Email: siauwei.pung@trade.gov
Coastal nations around the globe retain special rights adopted through the 1982 United Nations Convention on the Law of the Sea – a concept known as an “exclusive economic zone” (EEZ). An EEZ is an area of ocean about 200 nautical miles beyond a nation’s territorial sea, within which the owning nation has jurisdiction over both living and nonliving resources. EEZs are extensive in the Indo-Pacific region and Malaysia claims approximately 130,000 square miles in the southern area of the South China Sea.
While the South China Sea remains a disputed territory, Malaysia’s Ministry of Defence (MINDEF) published its first ever Defense White Paper in 2020, noting that to safeguard against challenges and enforce rights to its EEZ, Malaysia needs modern equipment for its navy and air force. As a result, Malaysia dramatically increased defense spending, with a 10 percent increase to $4.2 billion in 2024, and acknowledged that these investments are long-term, lasting beyond Malaysia’s standard five-year plan.
Overlaying trade and export opportunities for U.S. industry in Malaysia, is the Indo-Pacific Economic Framework for Prosperity (IPEF). IPEF is part of the Biden Administration’s commitment to strengthen ties with allies and partners and tackle 21st-century economic challenges in the Indo-Pacific region. As partners to the framework, both the U.S. and Malaysia agree to advance the principles of resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness. These core guiding principles will be central to deepening U.S.-Malaysia relations, including in aerospace and defense.
For more information, please contact MaryLee Pollitt at marylee.pollitt@trade.gov
Sources:
What is the “EEZ”?: Exploration Facts: NOAA Office of Ocean Exploration and Research
Printing - LAW OF THE SEA (National legislation) © DOALOS/OLA - UNITED NATIONS
KPP2.pdf (mod.gov.my)
Malaysia Defense and Security (trade.gov)
Indo-Pacific Economic Framework | U.S. Department of Commerce
We engage with events and trade shows to accelerate the global reach of the events. Providing participants the assurance that the U.S. Department of Commerce not only recognizes the event but is also committed to using the event to maximize opportunities for U.S. exporters.
MALAYSIA DEFENSE INDUSTRY WEBINAR, OPPORTUNITIES FOR COLLABORATIONApril 16, 2024 Please join us to learn about business opportunities in Malaysia. This webinar will provide you with in-depth insights on current and future requirements, how to bid on available contracts, local partnerships, and offset requirements. Questions: Frantz Eyssallenne | |
Webinar on Upcoming Projects and Opportunities in the Canadian Aerospace MarketApril 18, 2024 Questions: Melissa Grosso | |
WEBINAR: Overview of the Japan Aerospace, Defense and Space Relationship with the United StatesApril 22, 2024 Questions: Amy Magat | |
Xponential 2024San Diego, California The U.S. Commercial Service is pleased to offer U.S. exhibitors at Xponential additional no-cost services to help you increase your presence in international markets. Questions: Christopher Munoz U.S. Commercial Service, TEPP | |
WEBINAR: Developments in the Indian Commercial Space sectorMay 31, 2024 Questions: Carey Arun | |
ILA Berlin 2024Berlin, Germany Questions: Moritz Holst U.S. Commercial Service, TEMS | |
Doing Business with the United NationsNew York, New York Join the U.S. Commercial Service New York and the U.S. Mission to the United Nations for a full-day “Doing Business with the United Nations” seminar in downtown Manhattan. The seminar will be hosted in-person only. Procurement officials from UN agencies with the largest procurement budgets, including the UN Secretariat, UNDP, WFP, UNHCR and UNOPS, will present their objectives, review procurement processes, and discuss upcoming acquisition plans. Get more information and register here. Questions: Susan Hettleman | |
Growing Your Aerospace & Defense Business Collaboratively Without Friction: | |
Eurosatory 2024Paris, France Questions: Frantz Eyssallenne U.S. Commercial Service, TEPP | |
Indian Ocean Defense and Security Conference 2024Perth, Australia Questions: Doug Hartley U.S. Commercial Service, TEMS | |
Taiwan Uncrewed Aircraft Systems (UAS) and Counter-UAS (C-UAS) Business Development MissionTaipei, Taiwan Join the U.S. Department of Commerce’s Taiwan Uncrewed Aircraft Systems (UAS) and Counter-UAS (C-UAS) Business Development Mission to Taiwan. The objective of this mission is to advance U.S. national interests and focus on meeting Taiwan market demand for U.S. UAS and C-UAS commercial and defense solutions. Participating U.S. firms will explore market development opportunities, gain market insights, make industry contacts, solidify business strategies, and advance specific projects with the goal of increasing U.S. exports and services in the aerospace and defense sectors. More information available here. Questions: Luke Yanos U.S. Department of Commerce, International Trade Administration, U.S. Commercial Service, Trade Mission | |
SME Zone at ADAS 2024Manila, Philippines Asian Defense and Security (ADAS) is the only Tri-service Defense and Security exhibition that addresses the specific requirements of the Department of National Defense, the Armed Forces of the Philippines, the Philippine National Police, and other Government defense and Security Agencies. The U.S. Commercial Service and Kallman Worldwide are pleased to be organizing the SME Zone at ADAS 2024. The SME Zone will include B2B matchmaking through the U.S. Commercial Service’s Gold Key Service. Space is limited to five (5) small sized companies. Questions: Jason Sproule |
Tools to Win! Trade Shows and Statistics
Our mission is to increase U.S. exports, enhance job creation, strengthen national security, promote and protect U.S. commercial interests abroad, and deliver customized solutions to ensure that U.S. businesses compete and win in the global marketplace. Export assistance is provided to U.S. companies who manufacture goods and/or provide services of at least 51% U.S. content.
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