LAE sector growth to create spillover effects for local MRO firms and component makers as Malaysia positions itself as an early mover
SERDANG: The development of the low altitude economy (LAE) sector is expected to generate spillover effects on the local aerospace industry’s supply chain when maintenance, repair and overhaul (MRO) companies and critical component manufacturers obtain supplies from local suppliers.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said that, apart from swiftly opening up market access for companies, the entry of global industry players would also bring about technology transfer, increase the capabilities of local engineers, and foster expertise in design and maintenance processes.
“So this is a space that Malaysia wants to be a part of — the LAE, and the Ministry of Investment, Trade and Industry (MITI) would like to bring in our agencies as well as our industry to participate, as this is a new field that has not yet been widely explored.
“Malaysia has the opportunity to leverage its advantages as one of the first-mover countries to explore this field,” he told reporters after launching the Malaysia Aerospace Summit 2026 here today.
Sim said the National Aerospace Industry Corporation Malaysia would represent MITI along with other agencies in policy formulation, and called for more industry players to join the LAE ecosystem.
Yesterday, Transport Minister Anthony Loke said the LAE guidelines are expected to be announced by the end of this year, thereby becoming a regulatory, operational, and governance framework to support the integration of safe airspace into the economic sector.
Loke said the guidelines being developed by the Civil Aviation Authority of Malaysia are expected to be announced at the Transport Expo Asia 2026.
He said LAE offers a significant economic opportunity for Malaysia, as the advanced air mobility and drone technology sectors are expanding rapidly, with billions of dollars in global investment.
