PUTRAJAYA: Malaysia needs to focus on developing high-value technologies, components and services to strengthen its position in the global space economy’s supply chain and reap the economic benefits of the sector, said Malaysian Space Agency (MYSA) director-general Datuk Azlikamil Napiah.
He said the focus is more strategic, given that the development of space technology requires large investments, is high-risk, and is growing rapidly.
Citing the National Space Industry Capability Study 2023 report, he said about 79 local companies are involved in space technology-related activities that contribute at least RM6.21 billion to the national economy.
He said the figure is projected to increase to RM10 billion and create about 5,000 new job opportunities by 2030.
“There is no need to go to Mars or the moon if it does not bring value to our economy. We want to take only what is best and beneficial to the country,” he told Bernama recently.
Azlikamil said Malaysia has a strong foundation to develop the space industry through its strength in the electrical and electronics, aerospace, and downstream space sectors, which have been developed since the country began harnessing space tech in 1988.
“Space technology is indeed expensive. We may not have as much funding as other countries, so we need strategic and selective implementation. We should choose those that need to be developed and can bring economic value to the country,” he said.
The space economy is usually divided into three main segments – upstream, midstream and downstream.
The upstream segment includes research, design, development, manufacturing, assembly, integration, testing and launch of space assets such as satellites, rockets, sensors and related components. This segment also involves the development of space technology and infrastructure.
The midstream involves the operation and management of space assets after launch, including satellite control, ground station operations, tracking and telemetry, data transmission, and the management of communication networks between satellites and users on earth.
The downstream activities include the use of data, images and services produced by satellites for various applications. These include satellite communications, navigation and positioning, weather forecasting, disaster monitoring, smart agriculture, environmental monitoring, urban planning, food security, maritime and defence.
Malaysia is now stronger in the downstream segment, particularly in the use of satellite data for the agriculture, forestry, disaster management, mapping and communications sectors.
The MYSA director-general said the country has embarked on developing the space sector through downstream activities that meet user needs, including the use of satellite data for agriculture, disaster management, security, natural resources, and government service delivery.
He said this approach allows the country to build a strong user base before expanding its expertise into midstream and upstream activities, including tech development, manufacturing, and satellite operations.
“In the downstream space sector, we are already very strong. Now we want to complete the entire ecosystem with upstream activities.
“We don’t want to just be consumers forever, and we want to move into becoming creators and service providers,” he said.
He said Malaysia also has satellite installation, integration and testing facilities in Banting, one of the largest in Southeast Asia, in addition to an earth receiving station which allows satellite data to be received and processed directly before being used for various applications.
In an effort to strengthen the country’s technological sovereignty, he said Malaysia planned to implement the National Remote Sensing Satellite Development Project through public-private partnership (PPP), with the satellite launch targeted for the end of 2028 or 2029.
“We cannot depend on foreign technology forever. To a certain point, even if we have money, it is not certain that the technology will be sold to us.
“Therefore, we need to build our own capacity and capabilities, and at the same time guarantee the country’s technological sovereignty,” he said.
He said the development of the space industry needed to be driven by greater private-sector participation through the PPP model, the private finance initiative, investment, and co-creation with international partners to reduce the cost of technology development and accelerate the mastery of local technology.
“We do not want to just buy goods. We want investors to come to Malaysia, collaborate with local industry players, produce something and then the returns can be enjoyed together,” he said.
Azlikamil said international cooperation is important as space technology advances too swiftly for any one country to develop its entire capabilities alone.
He said Malaysia is currently intensifying cooperation with Japan and China and plans to expand it to several other countries, including Italy and France.
However, he said, certain technologies, especially those with dual-purpose uses involving commercial, security and sovereignty aspects, need to be developed independently as access to sensitive technologies is not necessarily open to all countries.
Azlikamil said the next target is to make local companies suppliers of space tech and services to Southeast Asian and global markets.
Malaysia is currently among the top three in the ASEAN space ecosystem and is targeting the number-one position by 2030., he added.
“We envision local industries to not only be able to provide services for Malaysia but also the Southeast Asian region, whether in downstream, midstream or upstream activities. The demand for our space technology is already high. What we need to do now is fill the capability gap in the upstream space sector,” Azlikamil said.
He said the demand for space technology continued to increase, especially to address challenges such as natural disasters, food security, climate change, natural resource management and maritime safety.
Azlikamil said the success of the space sector is not measured solely by sending humans into space, but by the extent to which the technology developed provides added value to people’s well-being and the country’s development.
