Malaysia will set up an institute next year to train people in the area of component manufacturing for the aerospace industry.

Malaysian Science, Technology and Innovation Minister Maximus Ongkili told reporters here on Wednesday that the new institute, to be named the Aerostructure Manufacturing Innovation Center ( AMIC), will be the research and development center for three areas.

These areas include the design of new aerostructure, manufacturing process of aerostructure, and utilization of new materials for aerostructure, Ongkili said.

Ongkili said a total of 40 million ringgit (12.94 million U.S. dollars) would be used for training programs, helping Malaysia develop the capability in aerostructure research and design.

The minister added that the fund would be jointly borne by the Malaysian government and the private sector.

According to Kamarulzaman Zainal from the Malaysian Aerospace Council's secretariat, the private sector would contribute 20 million ringgit (6.47 million U.S. dollars) through "offset programs"

He said that under the programs, the companies involved would provide training to students of AMIC, with total value amounting to 20 million ringgit (6.47 million U.S. dollars)

Zainal said that the Malaysian Defense Ministry was going to purchase helicopters from one of the companies that provides the offset programs.

Malaysia has entered into such arrangement for offset programs before when it purchased Sukhoi fighter jets from Russia, which has later helped Malaysia to produce its first astronaut.