Malaysia targets to have 50 SMEs under PRESTIGE AMI programme by 2030

Malaysia targets to have 50 SMEs under PRESTIGE AMI programme by 2030
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SUBANG JAYA (April 26): The government targets to have a total of 50 small and medium enterprises (SMEs) under the Strategic Industries and High-Performance SME Improvement Programme (PRESTIGE): Aerospace Manufacturing Initiative (AMI) by 2030.

The programme is implemented by the Entrepreneur Development and Cooperatives Ministry (MEDAC), through SME Corporation Malaysia.

MEDAC minister Datuk Seri Wan Junaidi Tuanku Jaafar said 30 SMEs had been involved in the programme since 2017, and 10 more SMEs were expected to be brought in this year.

“The programme has made a positive impact, with the SMEs involved recording cumulative sales of RM69.9 million in 2019 for an average sales growth of nearly 24%,” he told reporters after the official opening of the new building of one of the programme’s participants, Kaizan Aero Manufacturing Sdn Bhd, here today.

Apart from this achievement, the company had also obtained the quality management system certifications needed for the aerospace industry, including the AS9100 and NADCAP (National Aerospace and Defense Contractors Accreditation Programme) certifications, to fulfil the criteria for being a global aerospace component producer, Wan Junaidi said.

He noted that the aerospace industry was one of the key economic catalysts for Malaysia towards becoming a high-income nation.

The minister said in 2019, the aerospace industry in the country comprised a total of 84 players with revenue of RM14.4 billion, contributing 7% to the country’s Gross Domestic Product and providing jobs for 24,500 people.

By 2030, he said, Malaysia aimed to become Southeast Asia’s hub for aerospace component manufacturing and the supplier to aerospace giants.

“The involvement of SMEs in the global aerospace component supply chain is vital considering the increase in investments by large aerospace component manufacturers such as Spirit Aerosystems, Senior  Aerospace UPECA and Composites Technology Research Malaysia Sdn Bhd (CTRM) in Malaysia,” he said.

Wan Junaidi said the PRESTIGE AMI programme was implemented using a holistic approach in increasing the capability of SMEs through technology adaptation, quality management system and increased market access.

“SMES selected for the programme will undergo capacity building and be eligible to receive financial assistance of up to RM500,000 in matching grant for their transformation activities comprising standards and certification, new technology adaptation, and strategic marketing to penetrate the global aerospace supply chain,” he added.