M'SIAN GOVT TO FURTHER DEVELOP AEROSPACE INDUSTRY

PUTRAJAYA, Feb 19 (Bernama) -- The Government will further develop the
aerospace industry in preparation for the high-income economic era, says
Deputy Prime Minister Muhyiddin Yassin.

He said the industry has the potential to generate more revenue and
stimulate economic growth.

The industry's investment value swelled by 300 per cent to RM991.6 million
(US$291.64 million)in 2008 from RM113.3 million (US$33.32 million) in 2006,
marking a giant leap in cumulative investments, he said.

The industry, which created 50,000 jobs in 2008, is poised to grow at 11 per
cent every year, he told reporters after chairing a meeting of the cabinet
committee specially set up to study impartment aspects of human capital
development for the New Economic Model era.

The Malaysian Industry-Government Group for High Technology (MIGHT) and the
Economic Planning Unit (EPU) in the Prime Minister's Department tabled working
papers related to the aerospace industry at the meeting.

Two other working papers presented are industrial training policy framework
for graduates by the Higher Education Ministry and World Bank Report titled
"Developing Human Capital High Income Malaysia".

Muhyiddin said the nation needed adequate and skilled manpower in its quest
to develop the aerospace industry and its sub-sectors like manufacturing,
maintenance, repair and overhaul and aviation.

In their reports, MIGHT and EPU made proposals to increase the number of
licensed aeronautical engineers, pilots and skilled labour force in the aviation
manufacturing sub-sector component, he said.

"Application has been made for a specific amount of allocation and I've
asked the Finance Ministry to consider approving the amount under the 10th
Malaysia Plan," he said, adding that the money would be used for training and
capacity building of aerospace-related institutions.

"There is a proposal for the Department of Civil Aviation to be
corporatised.

It will be brought to the Cabinet for deliberations. Few other initiatives
have also been proposed for implementation," said Muhyiddin.

Asked what was the most critical aspect in human capital development,
Muhyiddin said the Government did not merely focused on specific fields but
looked at the overall scenario.

"We are studying the situation in entirety. We are looking into areas that
have avenues for further improvement and segments that needed high-skilled human
capital.

"We are also studying areas that are undergoing rapid expansion such as
manufacturing and services as well as disciplines related to technology and
specialised skills," he said.

Muhyiddin said the human capital issue has become more critical now in the
context of making available sufficient human resource to meet requirements of
the New Economic Model to be unveiled by the Government soon.

"We are moving towards a high income-based economy, hence the need for a
highly-skilled human resource," he added.
-- BERNAMA