For Developing Aircraft Industry, Japan Plans to Tie-up with ASEAN Member Nations

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According to reports, The Japan government is planning to work with members of the Association of Southeast Asian Nations to promote the development of the aviation industry.

Following the plan, its first step will be creating a cooperation framework with the Malaysian government, which positions aircraft as a strategic industry.

This will be the first time for Japan to enter into such an agreement with an Asian nation even though Tokyo has signed a memorandum of cooperation and other agreements with U.S. and European governments and companies. And, through such moves, the government is hoping to speed up private-sector collaborative projects in the growing ASEAN market.

In mid-February on the sidelines of Singapore Airshow 2020, Japan’s industry ministry and Malaysia’s Ministry of International Trade and Industry will hold a meeting and are expected to agree on setting up a bilateral cooperation framework.

Japan will also provide the Southeast Asian nation with support over human resource development, including sending experts and accepting trainees and under the framework, the two sides will boost cooperation over the manufacturing process of aircraft parts makers.

Spirit AeroSystems Inc. which is a major U.S. aerostructures manufacturer and other firms, has set up manufacturing bases in Malaysia and by 2030, Malaysia has aimed to become the biggest aerospace nation in Southeast Asia.

Wada Aircraft Technology Co. and Imai Aero-Equipment Mfg Co, Japanese aircraft parts makers, also have expanded their businesses into the country.

Major U.S. and European manufacturers are rushing to build a parts supply network in ASEAN nations as the aviation industry in Asia is expected to see a surge in demand.

Total sales of Japan’s aircraft industry came to some ¥1.8 trillion in 2018. With the government aiming to boost such sales to around ¥3 trillion in 2030, an industry ministry official voiced expectations that the strengthened partnership with Malaysia will lead to an increase in earnings for Japanese companies.