SE Asia's aerospace industry to soar: Mahathir<\/p>\n
LANGKAWI, Malaysia (AFP): Malaysian Premier Mahathir Mohamad
\nopened an international air show yesterday and expressed optimism
\nthat the region's aerospace industry will expand on the back of
\nthe economic crisis.<\/p>\n
\"Withour doubt, the aerospace industry in this part of the
\nworld will be growing at the same accelerated rates as was the
\neconomy prior to July,\" he said at the Langkawi International
\nMaritime and Aerospace Exhibition (LIMA) '97 in Malaysia's
\nnorthern resort island of Langkawi.<\/p>\n
Some 900 exhibitors from around the world are taking part in
\nLIMA '97 which will focus on the maritime sector.<\/p>\n
A total of 42 surface ships and four submarines will be on
\ndisplay, including the French Agosta-class submarine, along with
\n60 aircraft.<\/p>\n
Mahathir said many countries in Southeast Asia were now
\nproducing small planes and components for big commercial
\naircraft, adding that offset programs had contributed much
\ntowards this development.<\/p>\n
He said Asia-Pacific demand for aircraft was estimated at
\n3,750 out of the 15,000 world total requirement by 2014,
\nequivalent to US$400 billion in value.<\/p>\n
\"It is therefore not surprising that of late aircraft
\nmanufacturers have been concentrating their marketing efforts in
\nthis part of the world.<\/p>\n
\"Clearly exciting things are happening which a currency crisis
\nis not going to dampen too much but generate a lot of business
\nfor the aerospace and maritime exhibition,\" the prime minister
\nsaid.<\/p>\n
Mahathir said with the fall in currency values, the region
\nwould become more attractive for the cheaper production of high
\nquality components. Some Asia-Pacific countries were actively
\nnegotiating joint ventures to produce regional jets and other
\ncommercial aircraft, he said.<\/p>\n
Show organizers have said the economic crisis had led to the
\nwithdrawal of seven companies including five foreign firms -- two
\nfrom the United States and one each from Belgium, Russia and
\nAustralia.<\/p>\n
Megat Nawawi Megat Hamid, senior manager of organizer Le
\nProton, said seven other companies had reduced their exhibition
\nspaces while two Russian companies had cut the number of aircraft
\nat the show.<\/p>\n
Mahathir said regional currency falls had reduced purchasing
\npower but \"everyone is convinced that the present problem is
\ntemporary.\"<\/p>\n
\"One way or another the spending capacity will return and will
\ngrow.\"<\/p>\n
Mahathir said that in the last decade, the Asia-Pacific region
\nhad emerged as the fastest growing in terms of economic
\nperformance and world trade.<\/p>\n
\"With almost two billion diligent and skillful people in North
\nEast and Southeast Asia, their needs even at the time of recovery
\nwill be huge.\"<\/p>\n
Mahathir dismissed talk of an arms race in the region. \"There
\nis no arms race in this region but the fact remains that old
\nequipment needs to be replaced with more modern ones.\"<\/p>",
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