SE Asia's aerospace industry to soar: Mahathir
SE Asia's aerospace industry to soar: Mahathir
LANGKAWI, Malaysia (AFP): Malaysian Premier Mahathir Mohamad opened an international air show yesterday and expressed optimism that the region's aerospace industry will expand on the back of the economic crisis.
"Withour doubt, the aerospace industry in this part of the world will be growing at the same accelerated rates as was the economy prior to July," he said at the Langkawi International Maritime and Aerospace Exhibition (LIMA) '97 in Malaysia's northern resort island of Langkawi.
Some 900 exhibitors from around the world are taking part in LIMA '97 which will focus on the maritime sector.
A total of 42 surface ships and four submarines will be on display, including the French Agosta-class submarine, along with 60 aircraft.
Mahathir said many countries in Southeast Asia were now producing small planes and components for big commercial aircraft, adding that offset programs had contributed much towards this development.
He said Asia-Pacific demand for aircraft was estimated at 3,750 out of the 15,000 world total requirement by 2014, equivalent to US$400 billion in value.
"It is therefore not surprising that of late aircraft manufacturers have been concentrating their marketing efforts in this part of the world.
"Clearly exciting things are happening which a currency crisis is not going to dampen too much but generate a lot of business for the aerospace and maritime exhibition," the prime minister said.
Mahathir said with the fall in currency values, the region would become more attractive for the cheaper production of high quality components. Some Asia-Pacific countries were actively negotiating joint ventures to produce regional jets and other commercial aircraft, he said.
Show organizers have said the economic crisis had led to the withdrawal of seven companies including five foreign firms -- two from the United States and one each from Belgium, Russia and Australia.
Megat Nawawi Megat Hamid, senior manager of organizer Le Proton, said seven other companies had reduced their exhibition spaces while two Russian companies had cut the number of aircraft at the show.
Mahathir said regional currency falls had reduced purchasing power but "everyone is convinced that the present problem is temporary."
"One way or another the spending capacity will return and will grow."
Mahathir said that in the last decade, the Asia-Pacific region had emerged as the fastest growing in terms of economic performance and world trade.
"With almost two billion diligent and skillful people in North East and Southeast Asia, their needs even at the time of recovery will be huge."
Mahathir dismissed talk of an arms race in the region. "There is no arms race in this region but the fact remains that old equipment needs to be replaced with more modern ones."