THE space economy is set to reach USD1.8 trillion (RM8.6 trillion) by 2035, according to a report from the World Economic Forum in partnership with McKinsey & Company.

This marks an estimated average growth rate of nine per cent per annum mainly driven by space-based or enabled technologies such as communications, positioning, navigation and earth observation services.

According to the Malaysian Industry Government Group for High Technology (MIGHT) president and chief executive officer, Rushdi Abdul Rahim, Malaysia is poised to benefit from the growing space sector.

"Malaysia's direct presence in the space sector is of obvious strategic relevance especially given the pervasive application of IoT and the related issues of national sovereignty and security, as well as data and information integrity.

"But the space sector is also an increasingly lucrative economic powerhouse with growing private sector participation and investment," he said.

With the National Space Policy launched in 2017, Malaysia aims to be among the top three countries in Southeast Asia in space technology development services and manufacturing.

Malaysian Space Agency (MYSA) director general Azlikamil Napiah said, "The space technology ecosystem is set to contribute at least one per cent to the national GDP by 2031 equivalent to approximately RM10 billion and the creation of 5,000 high value jobs.

"It is also geared towards self-reliance in space technology for Malaysia, achieving at least 50 per cent by 2030."

COLLABORATION THE WAY FORWARD

This calls for a strong collaboration effort by both the government and industry sectors.

"It positively affects the risk profile, allows for resource and expertise leveraging and improves both the viability and efficiency of space ventures.

"International collaboration is key to keeping ahead of new technologies and, more importantly, to effectively integrate into the global supply chain," said Rushdi.

"MIGHT actively promotes this through its TechnoMart Malaysia platform, previously with Turkey and more recently with Scotland, with more in the pipeline.

"Additionally, the Malaysian Space Industry Consortium (MASIC) formed last year aspires to present the collective abilities of local space industry players to position Malaysia as a competitive global space industry player.

"This strongly aligns with Malaysia Space Exploration Action Plan 2030 (MSE2030) and the Space Industry Strategic Plan (SISP)," he added.

To better understand the requirements of the global space sector, greater alignment and alliances with international space agencies such as NASA, European Space Agency (ESA), Indian Space Research Organization (ISRO), Space Scotland, UK Space Agency and others are necessary.

MASIC secretary Muhamad Nurazmi Abas, who is also the project executive director for the SJ-1 Satellite Project, said, "This allows Malaysia to accurately gauge its positioning in the international space value chain. It also enables us to explore newer business segments within the space ecosystem.

"Space launch services remain a lucrative market. The market size reached USD14.6 billion (RM69.8 billion) in 2023 and is expected to reach USD41.3 billion (RM197.5 billion) by 2032, exhibiting an annual growth rate (CAGR) of 11.9 per cent."

"We are already acquainted with broadcasting, telecommunications and earth observation as integral 'space-to-earth' services. But the space industry continues to evolve.

"We should also venture beyond launch services, satellite operations, and related activities into In-Orbit Servicing (IOS), assembly, and manufacturing (ISAM)."

According to Nurazmi, the good news is that Malaysia is not starting from zero, as the country already supplies printed circuit board interfaces for space applications.

"In addition, our framework for aircraft and composite materials is extremely robust and is well-positioned to penetrate the global space industry supply chain.

"The space community is optimistic," he added.

https://www.nst.com.my/news/nation/2024/04/1043948/might-advocates-collaborative-expansion-space-economy