CopyrightbyStrandAerospaceMalaysia1

DevelopingAsia’sManufacturingEcoSystem

AerospaceManufacturingAsiaPacificForumSingaporeWednesday,1Nov2017

EPP5ENGINEERING

SERVICESEPP1MRO

EPP7HUB FOR

OEMs

EPP8SME

DEVELOPMENT

ECONOMIC TRANFORMATION PROGRAMME AEROSPACE BLUEPRINT

ETP and Aerospace Blueprint have the programs and initiatives that will drive the industries development

Aerospace Industry as a key driver for RMK11 objectives:

1. Malaysia’s transformation into a high-income nation2. Re-engineering economic growth for competitiveness3. Harnessing talent4. Environment and Resource Management

2

PEMANDU ETP 2020 Target

EPP1 EPP5

Additional Revenue by 2020

RM 17.4 B RM 4.6 B

Additional Jobs by 2020

21,000 11,500

EPP7

RM 19.6 B

3,368

The ETP has targets to be achieved by 2020, while the Aerospace Blueprintprovides a strategic gateway to position Malaysia as the region’s leadingaerospace hub by 2030. The goals were developed to take advantage offavorable global market trends.

Malaysia Initiatives: ETP, Blueprint & RMK 11

3

1990 2009 2014 2015 2016 2017

• 1990 -Establishment of Composite Technology Research Malaysia (CTRM)

• 1997 – Malaysia Aerospace Blueprint 1997

• Establishment of Spirit AeroSystems

• Airbus Customers Services Malaysia started operations

• Messier-BuggatiDowty (carbon brake facility in Malaysia)

• Malaysia Aerospace Blueprint 2030

• 11th Malaysia Plan -Aerospace as focus sector

• Rolls Royce UMW Collaboration

• French Aerospace Industry Association (GIFAS) opened a regional office

• Tooling Supply Chain handover project between Airbus and local players.

• Spirit Aerosystemsand CTRM are currently expanding

• Establishment of Honeywell Regional Principal Hub in Kuala Lumpur

• Expansion of Honeywell Aerospace and SR Technics in Malaysia

• Development of UMW High Value Manufacturing Park

Major Milestones in Malaysian Aerospace Industry

• Launch of MAHB KLIA Aeropolis

KLIAAeropolis

Major Milestones in Malaysia Aerospace Manufacturing

AerospaceOEM’sNeeds:IndustryReadyHumanCapital,Research&Technology

Capability,GovernmentSupport,SupplyChain,WorldClassFacilitiesandInfrastructure,RegionalMarketAccess

NationalAerospaceBlueprint2015-2030

EconomicTransformationProgramme(ETP)

HumanCapital

Development

Research&Technology

EngineeringServices

Infrastructure

Investment

BusinessConsultingCentre

IncollaborationwithMARAAerospace&

Technologies

EntryPointProject1&7

EPP7: Making Malaysia the Hub for the OEMs

MALAYSIAECOSYSTEM

UMWECOSYSTEM

UMWLAND

UMWTECHNOLOGY

UMWTRAINING CENTRE

UMWAERO ASSET

+

PARTNERInfrastructure Leasing

Information Technology Services

Equipment Leasing

Human Capital Development

• Ecosystem benefits in lower capex investment by economies of scale and cost-sharing• Alignment of strategy for faster project execution• This adds into the overall competitiveness besides technical capability

ASIAAEROSPACECITY

UMW CORPR&D Platform

Government Liaison

UMW Ecosystem for High Value Manufacturing

IKMAlorSetar

CIVIL

KKTMSriGading

KKTMLenggong

BIOTECHNOLOGY

DIGITALFABRICDESIGN&

PRODUCTION

MULTILEVELHUMANCAPITALDEVELOPMENT

IKMJohorBahruIKMLumutIKMBeseri

IKMKualaLumpur IKMTSYAKKTMBalikPulau

IKMLumutIKMBeseri

IKMJasinIKMTSYA

IKMKuchingIKMKotaKinabalu

IKMBintuluKKTMKemaman

IKMJasinIKMLumutIKMSg.PetaniIKMKualaLumpur

KKTMMasjidTanah

WELDING MECHANICALDRAFTING

AUTOMOTIVE

OIL&GAS AUTOMOTIVE4WD

AUTOMOTIVECOMMERCIAL

ELECTRICAL

ADVANCEDMATERIAL

MANUFACTURING

6

MARA (Council of Trust for the People)• Malaysia’s largest human capital provider • Contributes up to 37% of Malaysia’s total technical workforce• Covers educational level from secondary to PhD• Focuses strongly on Technical and Vocational Educational

and Training (TVET)• Provides customised human capital to industry• Graduate employability up to 84%

Source:MARACorporateData2015

21,698

15,877

4,689

27,651

2,512

6,261

17,546

17,296

7,493

6,724

5,961

2,201

2,216

6,835

MARAInstitutions:

TOTALENROLMENT:96,234 GRADUATES: 48,726

MARAInstitutions:

JAPAN MALAYSIA TECHNICAL INSTITUTE• Produces skilled workforce in Manufacturing Engineering (M&E) Technology,

Mechatronics, Electronics and Computer Systems.

GERMAN MALAYSIAN INSTITUTE• Diploma in advanced technology in Industrial Electronics and Production Technology.

UNIVERSTIY OF KUALA LUMPUR• Diploma, degree, masters and PhD in Automotive, Aviation, Marine, Medical, Machine

Building and Metal Fabrication.

MARA COLLEGE• pre-university programmes in medicine, dentistry, engineering, architecture, accountancy

etc. for undergraduate and professional courses.

MARA SKILLS TRAINING COLLEGES (KKTM)• Semi- and high-skilled workforce in M&E, Electronic, Automotive and Bio-medic. MARA-

Japan Industrial Institute (MJII) under KKTM trains students in Electronic Engineeringwith the possibility to pursue a degree in 22 Japanese universities.

MARA POLY-TECH COLLEGE• Diploma in Electrical and Civil Engineering, Multimedia, Social Sciences, Business and

Accounting.

MARA UNIVERSITY OF TECHNOLOGY• Undergraduates and postgraduates in Engineering, Science, Technology, Management,

Pharmacy, Medical, Business and Accounting.

GIATMARA• Technical and vocational training courses in Manufacturing, Construction, Networking

Technology, Mechanical and Electrical Engineering.

MARATRAININGANDEDUCATIONALINSTITUTIONS

Human Capital Development – Re-engineering The Education Sector

• TrainingFactory– apprenticeshipconceptforhighvaluemanufacturing

• DevelopedwithsupportfromRRforUMW.ConcepttobespunoffwithMARA.

Human Capital Development – UMW Aerospace

CopyrightbyStrandAerospaceMalaysia 8

INDUSTRIAL

INDUSTRIAL

INDUSTRIAL

FUTUREDEVELOPMENT

COMMERCIAL

INNOVATIONPARK

UMWCLUSTER

VISITORCENTRE

AEROSPACE

UMW Serendah High Value Manufacturing Park

9

UMW Aerospace main factory, pre production, main office and ancillaries building inUMW High Value Manufacturing Park

CURRENT FLOOR AREA:

270, 000 ft2

Actualsite Actualsite

Factory construction was completed in Dec 2016. First Article Inspection (FAI) completed first week of October 2017

UMW Serendah High Value Manufacturing Park

AeroandMechanicalEngineeringServices

BusinessConsultingCentre

BuildingandInfraEngServices

Training,ResearchandTechnology

AS9100andOEM’sApprovedSupplierandPartner GlobalCustomers

Our Company - Strand Aerospace Malaysia