Malaysia Building Society Bhd (MBSB), the country’s second-largest standalone Islamic bank, has pledged RM1 billion in financing to accelerate the nation’s aerospace sector. The announcement was made at the Langkawi International Maritime and Aerospace Exhibition 2025 (LIMA 2025), reinforcing Malaysia’s push to become a leading aerospace hub in Asia.
The financing, offered through MBSB Bank and MIDF’s Development Finance facility, is aimed at supporting a wide ecosystem — including OEM suppliers, Tier 1 and Tier 2 manufacturers, MRO (maintenance, repair, and operations) providers, and firms driving research, automation, and talent development.
“Funds are available immediately, with streamlined approvals coordinated through our commercial and development finance teams,” MBSB said.
The bank is also collaborating with aerospace clusters in Selangor, Johor, and Negeri Sembilan to ensure that high-impact areas receive targeted support.
“Aerospace is not just a high-tech sector; it’s a high-impact one,” said MBSB Group CEO Rafe Haneef. “Our RM1 billion facility is designed to scale that impact by backing players with the ambition to lead in manufacturing, design, and innovation.”
The move has been lauded by the National Aerospace Industry Coordination Office (NAICO) Malaysia, with CEO Shamsul Kamar Abu Samah calling the fund “a timely boost to the sector’s momentum.”
In 2024, Malaysia’s aerospace industry recorded RM25.1 billion in revenue, fuelled by strong growth in both manufacturing and MRO services.–THE EDGE
