The industry challenges will be looked at from the five MIGHT F.I.R.S.T © perspectives. SPACE INDUSTRY CHALLENGES
FUNDING
INFRASTRUCTURE THE INFRASTRUCTURE REQUIRED AND INSTITUTIONS RESPONSIBLE TO SUPPORT THE DEVELOPMENT OF SPACE
Budget availability for developing new and maintaining existing infrastructure The research, development, and deployment of space assets incur significant expenses, including the high costs of constructing, deploying, and operating satellites and spacecraft. This subsequently limits the engagement in space activities for many governments and organisations. Generating a return on investment often takes years, and securing financial resources for capital investment in infrastructure supporting space manufacturing is crucial, encompassing satellite, payload, and launch vehicle design and development. THE FUNDING AND FINANCING MECHANISM AVAILABLE TO SUPPORT THE DEVELOPMENT OF SPACE TECHNOLOGY 1
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Infrastructure to support adoption of new technology Progress in space technology has improved space accessibility, but significant barriers persist. Challenges in space exploration include developing launch infrastructure and reducing associated costs. Supply chain capacity needs strengthening to support local primary sectors adequately. The insufficiency of supply chain capacity to effectively sustain local primary sectors underscores the need for Malaysia to establish facilities capable of supporting commercial activities in the space technology sector, encompassing satellite design, assembly, integration and testing (AIT), and ground stations to nurture the sector’s growth.
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Availability of training infrastructure and trainers
A knowledgeable and experienced workforce that understands the space environment is needed to enable relevant procurements, programme commitments, and talent acquisitions. There is a need to establish a consortium comprising of higher learning institutions (HLIs) with the objective of coordinating R&D efforts and fostering innovation in the field of space technology. Training for operations in the space domain can only be done in virtual environments. Digital infrastructure for training satellite operators and testing the performance of new hardware are similarly important; examples include testbeds or virtualised environments that mimic the operation of satellites in orbit.
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Allocation to monitor space activities
The expansion and sustainability of the space sector hinge on various factors, chief among them being the development of a strong regulatory framework for investment and funding. However, this sector faces a substantial challenge due to its high investment costs, which are not mitigated by economies of scale, largely due to low demand and a predominant focus on the local market.
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Stability of currency
Space is a global business. An unstable currency will have a negative impact on space investment and cost.
Funds to develop specific programmes
The availability of financial resources for space research and development is currently constrained, with a lack of specialised incentives for space-related activities in Malaysia. While some existing incentives are still relevant, dedicated funding for the commercial space industry is missing. Private investments in Malaysia have not fully embraced the space sector. An urgent need exists for a specialised platform to coordinate private investors and support the industry’s growth.
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Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry
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