Malaysia is working hard to develop the skills and expertise to create a lean and efficient aerospace sector, and has partnered with key stakeholders to holistically develop the local industry.
How have your business lines developed in the Malaysian market?
BADRUL FEISAL ABDUL RAHIM At present, we have four divisions: automotive, oil and gas, equipment, and manufacturing and engineering (M&E). As with any other organization, we consistently scan the horizon for new business opportunities and seek to address any gaps within the group. To cut it short, one of the things we realized was the need to expand the global reach of our M&E division by upgrading its skill set and products. We have relatively good engineering skills. We wanted to continue building on this engineering base but move beyond producing somewhat commoditized products, as such products tend to lead to lower profit margins. The aerospace industry is a great fit for our ambitions. Aircraft manufacturers require strong, lean manufacturing competency in order to handle increasing volumes of production and we have existing capabilities that can be adapted to the industry. This business will allow us to migrate from labor-intensive manufacturing to high-value manufacturing and will also allow us to reposition our core competencies, embarking upon precision machining and assembly of crucial aerospace components.
SHAMSUDDIN MOHAMED YUSOF CTRM was established in 1990 under the Ministry of Finance with the objective to become a global composite production hub. This is a capital-intensive industry, with a high level of skills required for staff. The government assisted us by channeling grants and providing incentives for our industry to flourish. Through these efforts, we were able to establish ourselves as the pioneers in composite manufacturing, which was a new field for Malaysia. CTRM has over the years invested heavily in high-tech equipment and machinery, and we are now looking at growth. Loyalty and persistent commitment to our existing major customers over the years have further complemented CTRM in shaping its future strategic business plan. The market of composites part manufacturing is open, and we intend to focus on our major customers to remain cost competitive, especially in development activities. The acquisition of CTRM by DRB-HICOM in November 2013 has further accelerated the growth of the company from a MYR300 million turnover in 2012 to more than MYR800 million in 2015, after a major CAPEX investment of approximately MYR135.7 million as part of plant capacity expansion. This has further strengthened customers' confidence, which in turn has seen our order books rise to almost MYR12 billion until 2030.
Both companies have strong partnerships. How has this cooperative approach strengthened your respective businesses?
BFAR In 2014, we heard Rolls-Royce was on the lookout for a co-producer for its Trent 1000 and Trent 7000 aircraft engines. It has been developing Southeast Asia as part of its supply chain for a number of years, and has a large assembly facility in Seletar Aerospace Park in Singapore. Naturally, it made sense for Rolls-Royce to look to Malaysia to source its components and that was where we came in. We are known for our expertise in the automotive sector because of our long-standing partnership with Toyota; therefore, excellence in engineering has always been a big part of the group's DNA. We realized, however, that we needed to further develop this capability to be ready for the rapid developments in technology to move up the value chain and stay globally competitive. We are truly honored by Rolls-Royce's confidence in UMW. It took two years of due diligence and demonstrating our capacities and commitment to finalize this partnership and to become its tier-one supplier.
SMY Currently, we have 14 projects with the Aerospace Malaysia Innovation Centre (AMIC), of which we have completed three. Our partnership has been instrumental to our technical development and improvement. One of the stakeholders in AMIC is Airbus, which has provided critical technical advice over the years. AMIC works hand-in-hand with CTRM on improving process efficiency, productivity, and product quality. We work jointly to introduce Radio Frequency Identification (RFID) in our labor-intensive production process, and we explore the possibility of using robotics. Through AMIC's initiatives and global research, we can bring state-of-the-art technology to Malaysia and reduce our reliance on human resources, which is a critical part of high-tech manufacturing. These new technologies complement the production processes that we have in place, and are aimed at achieving consistency and accuracy. We work also closely with AMIC to localize our tools, which will tremendously reduce our maintenance activities. We have developed a mobile entity with portable equipment that we can use for repairs within our facilities. The collaboration with AMIC, paired with the support from Airbus, has accelerated our advancement in technology development.
TABLE OF CONTENTS
Charting a Wide Course Through a Narrow Sea
Deft Malaysian diplomacy reassured Beijing of its good intentions without making major concessions in security, trade, or maritime travel; subtly maintained strong ties to the United States; kept Japan in the loop; and held ASEAN together in the face of mounting Chinese pressure.read article
Focus: The ASEAN Economic Community
Great potential, greater responsibilities
Often overlooked for its nexus at one of the most peaceful junctures of the world—and hence as somehow less dynamic than the Middle Kingdom or as awe-inspiring as the ever-exciting Middle East—the ASEAN block is nonetheless not to be taken lightly.read article
Tun Musa bin Hitam, Chairman, World Islamic Economic Foundation (WIEF)
TBY talks to Tun Musa bin Hitam, Chairman of the World Islamic Economic Foundation (WIEF), on doing business across religious lines, improving global Muslim society, and implementing ethical lending systems.read article
Dato’ Kamaruzzaman Abu Kassim, President & Chief Executive, Johor Corporation (JCorp)
TBY talks to Dato' Kamaruzzaman Abu Kassim, President & Chief Executive of Johor Corporation (JCorp), on managing a wide portfolio, the new Ibrahim International Business District, and the role of China in the region.read article
Tan Sri Dato’ Sri Abdul Wahid bin Omar, Former Minister, Prime Minister's Department of Malaysia,
TBY talks to Tan Sri Dato' Sri Abdul Wahid bin Omar, Former Minister in the Prime Minister's Department of Malaysia, on reducing oil dependency, boosting sustainable infrastructure, and preparing for rainy days.read article
Dato’ Dzulkifli Mahmud, Former CEO, Malaysia External Trade Development Corporation (MATRADE)
TBY talks to Dato' Dzulkifli Mahmud, Former CEO of Malaysia External Trade Development Corporation (MATRADE), on youth entrepreneurship, attracting Fortune 500 firms, and high aerospace aspirations.read article
Focus: Legacy Of Tan Sri Zeti Aziz
Big shoes to fill
The departure of Dr. Zeti Akhtar Aziz from Negara's top position kept many uneasy for a period of time. While a satisfactory successor has been chosen, Aziz leaves behind a legacy of one of the world's most renowned central bank leaders.read article
Datuk Sazali Hamzah, Managing Director/CEO , PETRONAS Chemicals Group (PCG)
TBY talks to Datuk Sazali Hamzah, Managing Director & CEO of PETRONAS Chemicals Group (PCG), on the group's major achievements in recent years, prospects for expansion, and pursuing further opportunities.read article
Mohd Zamzam bin Jaafar, CEO, Malaysia Nuclear Power Corporation (MNPC)
TBY talks to Mohd Zamzam bin Jaafar, CEO of the Malaysia Nuclear Power Corporation (MNPC), on the progress being made on the path toward nuclear energy, the international and national guidelines that are being followed, and the regional perspectives on nuclear energy.read article
Y.B. Dato’ Seri Ong Ka Chuan, Second Minister , International Trade and Industry
TBY talks to Y.B. Dato' Seri Ong Ka Chuan, Second Minister for International Trade and Industry, on the benefits of cooperating with China, focusing on technological advancements, and its areas of focus under the Eleventh Malaysia Plan.read article
Datuk Dr. Mohd Yusoff Sulaiman, President & CEO, Malaysian Industry-Government Group for High Technology (MIGHT)
TBY talks to Datuk Dr. Mohd Yusoff Sulaiman, President & CEO of Malaysian Industry-Government Group for High Technology (MIGHT), on how to incorporate innovation into traditional fields of expertise and the importance of partnership in encouraging fresh ideas.read article
Dato’ Madani Sahari, CEO, Malaysia Automotive Institute (MAI)
TBY talks to Dato' Madani Sahari, CEO of Malaysia Automotive Institute (MAI), on creating the optimum environment for energy efficient vehicles, developing the human capacity to bring this industry to Malaysia, and the potential the automotive industry has for Malaysia and the wider region.read article
Tan Sri Dato’ Seri Ahmad Ramli Mohd Nor, Executive Deputy Chairman & Managing Director , Boustead Heavy Industries Corporation (BHIC)
TBY talks to Tan Sri Dato' Seri Ahmad Ramli Mohd Nor, Executive Deputy Chairman & Managing Director of Boustead Heavy Industries Corporation (BHIC), on leveraging experience and partnerships to branch out into global markets and how recent developments are shaping the ambitions of the company going forward.read article
Ashran Dato’ Ghazi, CEO, Malaysian Global Innovation & Creativity Centre (MaGIC),
TBY talks to Ashran Dato' Ghazi, CEO of Malaysian Global Innovation & Creativity Centre (MaGIC), on the company's partnership with Uber, entrepreneurship development, and the many resources at MaGIC's disposal.read article
Datuk Ir. Khalilur Rahman Ebrahim, Executive Chairman, System Consultancy Services (SCS)
TBY talks to Datuk Ir. Khalilur Rahman Ebrahim, Executive Chairman of System Consultancy Services (SCS), on projects with the government and military, cyber threats, and the extent of the company's presence in Malaysia.read article
Wan Suraya Wan Mohd Radzi, Senior Director, Sectoral Policy Division of the Ministry of International Trade and Industry
TBY talks to Wan Suraya Wan Mohd Radzi, Senior Director at the Sectoral Policy Division of the Ministry of International Trade and Industry, on what initiatives are accompanying the Aerospace Blueprint and how the sector will help Malaysia become a sector leader in ASEAN and beyond.read article
Shamsul Kamar Abu Samah, CEO, National Aerospace Industry Coordinating Office (NAICO)
TBY talks to Shamsul Kamar Abu Samah, CEO of the National Aerospace Industry Coordinating Office (NAICO), on ambitions for the sector, including the 3M Global Aerospace Future Landscape project between Malaysia, Mexico, and Morocco.read article
Datuk Badlisham Bin Ghazali, Managing Director, Malaysia Airports Holdings Berhad (MAHB)
TBY talks to Datuk Badlisham Bin Ghazali, Managing Director of Malaysia Airports Holdings Berhad (MAHB), on the ambitions of Kuala Lumpur International Airport's expansion and MAHB's plans for its surrounding land, as well as overseas plans.read article
Saji Raghavan, Country Director-Malaysia & Brunei, Rolls-Royce
TBY talks to Saji Raghavan, Country Director-Malaysia & Brunei at Rolls-Royce, on the local demand for a strong aerospace industry, the role partnerships will play in meeting the Malaysian Aerospace Blueprint, and its strategy going forward.read article
Datuk Seri Mah Siew Keong, Minister, Plantation, Industries and Commodities
TBY talks to Datuk Seri Mah Siew Keong, Minister of Plantation, Industries and Commodities, on the role of commodities in the national economy, driving innovation, and the potential for the rubber industry.read article
Datuk Dr. Sharif Haron, Director General, Malaysian Agricultural Research and Development Institute (MARDI)
TBY talks to Datuk Dr. Sharif Haron, Director General of Malaysian Agricultural Research and Development Institute (MARDI), on fruit diversity, working with universities, and innovation in domestic rice production.read article
Tuan Syamsani Tuan Mansor, COO, Putrajaya International Convention Centre (PICC)
TBY talks to Tuan Syamsani Tuan Mansor, COO of the Putrajaya International Convention Centre (PICC), on the growing MICE segment, working to increase the exposure of the center, and plans for the future.read article