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MAHB spearheads Subang regeneration initiative to position Malaysia as MRO hub in Apac

LANGKAWI: Malaysia Airports Holdings Bhd (MAHB) is embarking on its Subang regeneration initiatives to position Malaysia as Asia Pacific’s preferred maintenance, repair and overhaul (MRO) hub.

Its Group chief Executive Officer, Raja Azmi Raja Nazuddin, said the airport operator would spearhead its initiatives through concerted developments at Subang Airport and Kuala Lumpur International Airport (KLIA) Aeropolis.

“Subang Aerotech Park is estimated to attract RM1 billion worth of local and international investments while supporting more than 5,000 jobs, including high skilled workers, within the next five years,” he said.

“We are always striving to work with various aerospace specialists partner in materialising these benefits,” he said after a memorandum of understanding (MoU) signing ceremony with two global aerospace players: Boustead Projects Ltd and TP Aerospace Malaysia Sdn Bhd at the Langkawi International Maritime and Aerospace exhibition 2019 (Lima’19).


Previously, MAHB had gained positive traction in attracting global top tier players, namely Spirit Aerosystems, Senior Aerospace UPECA and Dassault Aviation.

Raja Azmi said these new partnership agreements would uplift MAHB and position it well to building on the success at Subang Airport and KLIA.

“Boustead Projects, an industrial real estate solutions provider, will help us ensure we provide excellent built-to-suit facilities for aerospace players at the Aerotech Park.

“TP Aerospace will also assist us to close the gap in the Subang Airport MRO value chain, namely in MRO of aircraft wheels and brakes,” he added.

MAHB has spent about RM40 million to develop a common infrastructure on its 14ha plot of land such as electricity, roads, platform, water and sewerage treatment plant, water tank, and drainage and earthwork preparations.

“Once the project kicks in, our partner (Boustead Project) will find tenants who are the aerospace manufacturer, components producer and MRO players.

“Tenants will then find suitable plots within our land and develop a built-to-suit facility (factory or assembly plant),” he said.

On facility development, Raja Azmi said Boustead Projects would construct the facility for tenants based on a long-term leasing programme.

“Currently, we already have one anchor tenant – Senior Aerospace — as the building is ready and will be in operation in the next few months.

“That’s the kind of development that we want to replicate on the rest of the land,” he said.

Singapore-based Boustead Projects managing director Thomas Chu said the company was currently in talks with six potential players to build and lease space on the parcel of land in Subang Aerotech Park.

“We are still in negotiations in the next six to 12 month, before finalising the deal with tenants.

”There are about 15 to 20 plots of land, depending on the customers’ preference of the land size that they want to lease.”

He said Selangor was expected to continue playing an important role in the Asia Pacific region’s growing MRO market for aircraft.

Chu said there were a lot of opportunities as many aviation companies had began negotiating with the company to spearhead development at the Subang Aerotech Park by partnering with MAHB.

“We have some existing customers to talk to and expand their portfolio. We offer built-to-suit leaseback solutions, which is fairly new for the sector in this country.

“The custom built-to-suit will depend on customers’ requirements as it can be one-storey or multi-storey with many variations of development,” he said.

The activities under the partnership will be carried out through a joint-venture company where MAHB and Boustead Projects will indirectly have shareholding of 30 per cent and 70 per cent, respectively.

The partnership will focus on the development and management of an aerospace high-tech park within the Subang Aerotech Park, providing customised industrialised facilities to be leased to tenants.

The second partnership agreement, between MAHB and TP Aerospace, involves an estimated RM2 million of investment in one of the current eight MRO facilities under the TP Aerospace Group, headquarted in Copenhagen, Denmark