SEPANG – Malaysia Airports Holdings Bhd (MAHB) is eyeing a total investment of RM1.3 billion for the regeneration of Subang airport (SZB), which will transform it from an airport operator into an ecosystem master developer and aviation hub in the Asia-Pacific region.
KLIA Aeropolis Sdn Bhd head Randhill Singh said RM300 million is needed for common infrastructure, and RM1 billion to build lettable facilities, such as hangars; factories; workshops; and, maintenance, repair and operations (MRO) spaces.
SZB will leverage the same global technology platforms and vendors used at Kuala Lumpur International Airport, giving it access to worldwide practices and standards to ensure synergy with KLIA in terms of passenger experience, he said.
“It is imperative for Malaysia to consolidate its position as a hub across these segments, namely business and commercial aviation, helicopter ecosystem, air cargo and e-commerce logistics, centre of aviation new technologies, aerospace manufacturing, and MRO, in the region.
“Having one complementary ecosystem between KLIA and Subang airport allows us to ensure we have the leadership position in Apac (Asia Pacific Accreditation Cooperation Inc),” he told a press briefing today.
KLIA Aeropolis is MAHB’s subsidiary tasked with undertaking land development for the operator’s network of airports nationwide.
Randhill said the five-year master plan, which is expected to be completed by end-2025, will be financed via internally generated funds by the airport operator and in partnership with industry players.
The investment will be mainly for lettable building facilities.
The project will likely generate over RM5 billion in economic output over the next five years, creating more than 10,000 jobs, said Randhill.
“We’ve developed about 60 acres (24.28 ha), representing 25% of the total 250 acres.
“We expect a positive return, a payback period within 10 years for the whole development.”
He said MAHB has secured a 40% to 50% take-up rate for tenants in the entire development, both airside and landside, with the new facilities able to accommodate 89 single-aisle aircraft and helicopters on dedicated and common-use aprons.
Subang airport has over 60 aerospace and aviation companies, covering turboprop, business aviation, helicopters, MRO, aero manufacturing, and logistics, he said.
“The ecosystem generates about RM1.7 billion in annual revenue, with 4,000 high-skilled jobs. We expect the workforce to triple over the next five years.”
Randhill said the initial development for the master plan will commence early next year to establish two MRO facilities for helicopter, light aircraft and business jets, to be operationalised by 2023.
Two MRO players are expected to sign agreements in the coming months, he said. – Bernama, April 19, 2021
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