OPENING SPEECH BY
YAB DATO’ SRI MOHD NAJIB BIN TUN HAJI ABDUL RAZAK
PRIME MINISTER, MALAYSIA
ON THE OCCASION OF
THE OPENING CEREMONY
THE 14TH LANGKAWI INTERNATIONAL MARITIME AND AEROSPACE EXHIBITION
SALUTATIONS:
Bismillahhirrahmannirrahim.
In The Name Of Allah The Most Precious And Merciful
Yang Berhormat Dato' Seri Dr Ahmad Zahid Hamidi
Deputy Prime Minister of Malaysia
Yang Berhormat Dato' Seri Hishammuddin Tun Hussein
Defence Minister of Malaysia
Yang Berbahagia Vice Admiral (Rtd) Senator Tan Sri Mohd Anwar bin haji Mohd Nor, Executive Chairman EN Projects Sdn. Bhd.
Your Excellencies,
Distinguished Guest,
Ladies and Gentlemen,
1. It is always a pleasure to be here at the Langkawi International Maritime and Aerospace Exhibition. I also take great pleasure in welcoming all of you to our beautiful Island of Langkawi, to Malaysia, and to this increasingly important global nautical and aviation gathering.
2. We are very proud that LIMA continues to be an effective gateway to one of the world’s largest maritime and aerospace growth markets, and it has become a mainstay of the global events calendar.
3. This 14th edition of the Langkawi International Maritime and Aerospace Exhibition has gathered more than 55 percent of the world’s top 100 maritime and aerospace companies here today, with 520 companies from 35 countries present.
4. I am also proud that more than 300 defence and security delegations, 55 visiting warships and boats, 106 aircraft and 467 journalists from television stations, radio, national daily newspapers and trade magazines from around the world have come to join us in Langkawi this year.
5. By the week’s end, we estimate that more than 40,000 trade visitors will have walked through the exhibition halls, and that is a great testament to LIMA’s ability to generate business and public interest.
6. In fact, this year’s event offers even more value for participants as various Government Ministries have come together in support of this prestigious event.
7. The involvement of the Ministry of International Trade and Industry through MATRADE and MIDA; the Ministry of Science, Technology and Innovation; the Ministry of Higher Education, and a greater role played by the Ministry of Transport, mean that this year features new and innovative programmes.
8. I commend our Defence Minister, Dato Seri’ Hishammuddin Tun Hussein, for his commitment to staging a successful event and to the organiser, EN Projects (M) Sdn Bhd.
9. I would also like to thank the Minister of Transport, Dato’ Sri Liow Tiong Lai, for all his efforts to ensure participation from the commercial sector.
10. And I would also like to express my gratitude to the Armed and Security Forces, the National Aerospace Industry Coordinating Office, and all the many ministries who have been involved for their collective contributions to the LIMA`17 programme.
Ladies and Gentlemen,
11. Defence and security are of paramount importance to any nation, as they are vital for maintaining territorial integrity and national sovereignty.
12. Given the traditional and non-traditional threats facing this region and beyond, defence expenditure is likely therefore to continue to rise.
13. Defence industries have a significant role to play in ensuring that our armed forces are equipped properly.
14. Further, the role of the defence industry is also changing dramatically, as new and changing threats require further research and development, increasing the overall costs and pricing of defence products and services.
15. We need to equip our fighting men with the capabilities required to face modern warfare, both symmetrical and asymmetrical, and LIMA`17 brings together major aerospace and maritime firms from around the world to demonstrate their state-of-the-art static and aerial displays and cutting-edge technologies.
16. We take this very seriously here in Malaysia. We have allocated a total of RM 26 billion under the 11th Malaysia Plan to cover defence, public order and enforcement.
17. Our defence spending will continue to grow as the Malaysia Armed Forces have embarked on a long-term capability plan to modernise and upgrade the equipment that we have at the moment.
Ladies and Gentlemen,
18. It was in 2015, here in Langkawi, that the Malaysian Aerospace Industry Blueprint 2030 was launched, setting a new ambition for Malaysia to become the leading aerospace nation in South East Asia, and to be an integral part of the global market.
19. By 2030, the aerospace industry is targeted to generate an annual revenue of RM55.2 billion and create more than 32,000 high income jobs.
20. The Ministry of International Trade and Industry, or MITI, was assigned as the leading ministry to oversee the overall development of the industry.
21. In August 2015, MITI established the National Aerospace Industry Coordinating Office to coordinate implementation of the Blueprint until the year 2030.
22. Today, Malaysia is one of the critical suppliers to Airbus and Boeing, with Malaysia producing more than 55 percent of composite wing parts for the A320 and B737.
23. Last year, the total trade for aerospace products stood at RM17.47 billion. Exports of Malaysia’s aerospace products, primarily parts and components, recorded a significant increase of 32.6 percent from the previous year, amounting to RM5.53 billion.
24. In terms of revenue, the aerospace industry earned RM12.7 billion in 2016, and employed more than 21,000 highly skilled workers.
25. Growth in this sector is expected to continue, as nine additional nine aerospace projects, with investments of RM1.6 billion, were approved in 2016 - of which 57 percent were from foreign investors.
26. The approved projects are expected to generate a total of 1,766 employment opportunities.
27. Furthermore, during LIMA 2015, the focus on ASEAN strengthened LIMA’s foundation as a successful business platform for the maritime and aerospace industries in one of the fastest growing economic groups in the world.
Ladies and Gentlemen,
28. The global shipbuilding/ ship repair industry industry has been severely hit by the global economic uncertainty. However, demand in local markets is still high and remains resilient.
29. Malaysia currently contributes a significant amount of the world newbuilding orderbook and is ranked 26th in the list of nations with the largest merchant fleet.
30. In the 2017 budget, the Government announced an allocation of RM1.8 billion for defence maintenance activity, including asset maintenance for the Malaysian Navy, the Malaysian Maritime Enforcement Agency (MMEA) and Marine Police.
31. For the commercial sector, it is estimated that around RM700 million in repair and conversion work will be available for local shipyards.
Ladies and Gentlemen,
32. Situated in the heart of one of the most vibrant maritime and aerospace markets, with strong connections to the region and an open, businessfriendly economy – Malaysia’s future prospects are strong.
33. We recently received a new accolade from BAV Consulting and the Wharton School of the University of Pennsylvania. In their 2017 survey, they awarded Malaysia first place – as the best country to invest in.
34. Even in these unsettled times, Malaysia posted growth of 4.2 percent in 2016. A similar figure is expected for this year, with higher growth anticipated in 2018 and beyond.
35. In fact PriceWaterhouse Coopers recently reported that Malaysia is expected to earn the 25th highest Gross Domestic Product in the world by 2030.
36. So I would like to take this opportunity to congratulate LIMA`17 for providing an opportunity for the aerospace and maritime industries to contribute to and participate in that growth.
37. I look forward to working with everyone here, and now it gives me great pleasure to announce the 14th Langkawi International Maritime and Aerospace Exhibition officially open.
Thank you