RKB Initiative Under MITI Boosts Access To Financing, Strengthens Aerospace Supply Chain

By Zufazlin Baharuddin

KUALA LUMPUR, Nov 29 (Bernama) -- The Bureaucratic Red Tape Reform (RKB) initiative under the Ministry of Investment, Trade and Industry (MITI) is already translating into tangible impact, improving service delivery, reducing red tape and fostering a more business-friendly environment.

For the aerospace industry, MITI focuses on expanding access to financing for local companies,  particularly small and medium enterprises (SMEs), to support technology adoption and automation upgrades.

RKB is driven by the Malaysia Productivity Corporation (MPC), an agency under MITI that leads the implementation of the programme.

On Sept 22, 2025, Micron Concept Aerostructures Sdn Bhd secured RM50 million in aerospace funding through partnerships with Malaysian Industrial Development Finance Bhd (MIDF) and MBSB Bank Bhd.

This included RM10 million in equity funding from the Malaysian Technology Development Corporation (MTDC) under the Aerospace and Electrical and Electronics Ecosystem Investment Fund (AEEEIF), complemented by RM40 million in debt facilities from the financial partners.

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The initiative supports the Malaysian Aerospace Industry Blueprint 2030, which targets RM55.2 billion in annual revenue and 32,000 aerospace jobs by 2030, as well as the New Industrial Master Plan 2030.

MPC deputy director general Dr Mazrina Mohamed Ibramsah said MITI’s financing facilitation has made notable strides in strengthening Malaysia's aerospace supply chain, particularly by addressing the financing barriers faced by local SMEs. 

“By providing access to affordable and low-interest financing, these initiatives enable aerospace companies to upgrade production capabilities, increase productivity, expand capacity and meet growing  domestic and global demand for aerospace parts.

“Additionally, through strategic financing and equity support, the industry has been able to enhance its technical capabilities, thereby improving overall competitiveness in the global aerospace supply chain,” she told Bernama.

Mazrina said there has been a positive impact on high-skilled job creation within the aerospace sector as a result of improved access to financing.

“With greater financial support, companies have been able to invest in training programmes, research and development (R&D) and advanced machinery, which in turn has driven the need for a more skilled workforce.

“Industry 4.0, implemented as part of capacity expansions, has fostered the development of specialised roles in automation, R&D and technical operations, contributing to the creation of higher-paying positions in the sector,” she said.

Mazrina also noted that Micron Concept Aerostructures was already part of the original equipment manufacturer supply chain, having received the “first article” project before securing financing.

Moving forward, Mazrina said MPC projects that the financing facilitation initiatives could generate up to RM17 million in compliance-cost savings if around 50 SMEs implement the proposed projects.

This estimate is based on the potential for streamlined processes, reduced administrative burdens and improved access to affordable financing options.

“By providing lower-interest financing and reducing reliance on traditional, high-interest loans, these efforts can lead to significant savings in both operational and compliance costs.

“These savings are achieved through greater process efficiency, better resource allocation and more efficient production capabilities,” she added.

-- BERNAMA