The Malaysian aerospace and automotive engineering services industry is expected to grow to RM3.3 billion in 2020 from RM50 million currently.
Performance Management Delivery Unit (Pemandu) director for Business Services National Key Economic Area (NKEA), Eugene Teh Yee, said it is important for the country to focus on developing pure play engineering services here.
Teh said there are about 400 engineers in pure play engineering services and the number is set to grow to 11,546 by 2020.
"With a strong existing base, Malaysia is well-positioned to grow its engineering services. It has a large number of engineering graduates to fill its workforce needs," he said here yesterday.
There were about 69,000 engineering graduates last year.
The aim to grow the aerospace and automotive engineering services industry is part of the Entry Point Project (EPP) 5 within the Business Services NKEA.
Meanwhile, Pemandu said efforts from the EPP have borne fruit with the development of Strand Aerospace Malaysia (SAM) and DreamEdge Sdn Bhd (DESB).
These companies have grown their engineering workforce to more than 100 each from fewer than 10 since the start of the Economic Transformation Programme.
"Both are now considered Tier-2 companies for design engineering and have expanded their reach to Europe and Japan," it said.
Besides aerospace and automotive engineering, Pemandu said SAM and DESB have expanded their services into shipbuilding and ship repair, smart city modelling and green technology, among others.
As part of the evolution of these companies, France-based companies like Altran Group and Ingeliance are working with SAM and DESB to nurture the growth of the aerospace and automotive engineering industries in Malaysia.