Business

MAHB submits Subang airport regeneration plan to govt

Plan will grow hub’s ecosystem threefold, doubling number of operators to over 100 and creating, supporting 19,000 high-skilled workers

Updated 5 years ago · Published on 21 Jun 2021 3:00PM

MAHB submits Subang airport regeneration plan to govt
The regeneration of Sultan Abdul Aziz Shah Airport aims to propel it as the preferred aerospace and business aviation hub in the Asia Pacific in the next five years, says MAHB. – The Vibes file pic, June 21, 2021

KUALA LUMPUR – Malaysia Airports Holdings Bhd (MAHB) has submitted to the government a comprehensive and strategic plan for the long-term development of Sultan Abdul Aziz Shah Airport (SAAS), or better known as Subang airport.

In a statement today, the airport operator said the plan, which has been verified through extensive benchmarking and stakeholder engagements, is premised on three focus areas: aerospace ecosystem, business aviation, and urban community airport.

“It is meant to propel SAAS as the preferred aerospace and business aviation hub in the Asia Pacific in the next five years.”

MAHB group chief executive Datuk Mohd Shukrie Mohd Salleh said since the company was mandated by the government in 2005 to develop SAAS into an international aerospace park, it has grown the ecosystem fourfold, attracting the presence of 60 leading brand names and facilitating capital inflows of over RM500 million. 

“Currently, there are over 35 local aviation operators there, more than half of them Bumiputera companies.”

He said the regeneration plan will grow this ecosystem by another three times, doubling the number of global and local operators to more than 100, and creating and supporting some 19,000 high-skilled workers.

It will help spearhead Malaysia’s transition into high technology, driven by Industrial Revolution 4.0 industries, and a high-income nation, with a projected value of over RM10 billion to the national economy. 

“This is very much aligned with the strategic thrusts identified in the government’s Shared Prosperity Vision 2030, and will achieve the aspirations of the Malaysian Aerospace Industry Blueprint 2030,” said Shukrie.

With sufficient internal cash reserves for the plan, he said, MAHB is ready to undertake SAAS’ regeneration.

“The plan requires infrastructure investment of RM300 million staggered over the next five years. This is well within our capability, as we have a strong cash and money market position of RM1.6 billion, with RM914 million available for Malaysian operations.”

He said the funding for ready-built or build-to-suit facilities can be easily facilitated via a combination of internal cash and project financing options. 

“Despite the pandemic, we’ve retained credit ratings of AAA by RAM Ratings and A3 by Moody’s, which are on a par with Malaysia’s country credit ratings.” – Bernama, June 21, 2021

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