SINGAPORE: Malaysia Airports is forging ahead with its plans for the Subang Regeneration Initiative by inking several partnership agreements and Memoranda of Understanding (MoU) with major aerospace and industry players at the Singapore Airshow 2018 held in Changi Exhibition Centre on 7 February 2018.
According to Malaysia Airports managing director Datuk Badlisham Ghazali, Subang already boasts a mature aerospace community that is well-known for MRO (maintenance, repair & overhaul), FBO (fixed-base operator), manufacturing, and training with the presence of world-renowned players such as Spirit Aerosystems, one of Airbus and Boeing’s major suppliers, as well as Airbus Helicopters and Leonardo (formerly known as AgustaWestland).
“We expect that a further regeneration of the Subang Aerospace and Aviation ecosystem will create a spill-over effect into KLIA Aeropolis in the future – an emerging Aerospace and Aviation ecosystem. Currently, we are creating value through synergistic collaboration with our business partners in order to derive mutual benefits and provide solutions in terms of supply chain, human capital, infrastructure and equipment, as well as technology to attract aerospace players to be part of the established ecosystem in Subang and subsequently expand into KLIA Aeropolis,” Badlisham added further.
The first partnership agreement is between Malaysia Airports and Axis REIT Real Estate Investment Trust (Axis-REIT) to develop a built-to-suit industrial manufacturing facility for Senior Aerospace UPECA. Axis-REIT is a real estate investment trust focusing primarily in office and industrial real estate with RM2.5 billion assets under its management. Meanwhile, Senior Aerospace UPECA is part of the Senior group of companies who is an international manufacturer of high technology components and systems. They are a Global Tier 1 and Tier 2 supplier to Boeing, Airbus and other major aerospace customers. This new 178,000 square feet facility will boast state-of-the-art automation and will house over 400 highly skilled engineering and technical employees.
“We are indeed excited to be part of Malaysia Airports’ synergistic collaboration in their regeneration initiative of the Subang Aerospace and Aviation ecosystem”, said Leong Kit May, CEO of Axis REIT Managers Bhd.
Ms Leong further went on to say that the Manager has entered into a “build & lease” agreement with Senior Aerospace UPECA to develop their manufacturing facility on the 7.02 acres of vacant land; subleased from Malaysia Airports at the Malaysia International Aerospace Centre (MIAC) Technology Park. The development of this industrial manufacturing facility is expected to take approximately one year to complete and will be ready for handover to Senior Aerospace UPECA by 15 December 2018.
Commenting on the partnership agreement, Kavan Jeet Singh, CEO of Senior Aerospace UPECA, said: “We are excited about the development of this new facility in Subang. It reiterates Senior’s commitment to invest and grow in this region. The new facility will provide an excellent platform to offer our customers more capacity and capability at the highest level of performance and competitive cost expected from Senior”.
The second partnership agreement is between Malaysia Airports and Skyways Technics, a company based in Sønderborg and Billund Airport, South Denmark with over 30 years of maintenance experience in ATR aircraft. Subang had been their first and only footprint outside of Denmark since 2014 and they cater to the Asia Pacific (APAC) market specifically for spare parts, component repair, and AOG (aircraft on ground) services for ATR & CRJ aircraft. Their new facility will be located at the MRO Center in Subang Aerotech Park and it will serve as their APAC regional headquarters.
Regional Manager (Asia) of Skyways Technics Lucas Ansinelli said, “Malaysia offers a great environment for Skyways Technics to further expand its component MRO activities in Asia-Pacific. Subang Airport has been our preferred choice since we started in 2014, and it is still a strategic location which will continue to attract more and more MRO companies. From our new facility, we look forward to grow our MRO activities and provide an unparalleled support to all our customers.”
During the same event, Malaysia Airports also signed two memoranda of understanding with Asian Business Aviation Association (AsBAA) and MARA Corp. AsBAA is an association representing approximately 150 business and general aviation entities across the region. Among others, AsBAA’s role will be to provide crucial industry knowledge on related key development issues, identify business opportunities, create awareness to stakeholders and undertake assessment and recommendation to strengthen the Sultan Abdul Aziz Shah Airport in Subang as an attractive destination for business aviation, serving both local and regional industry needs.
“On behalf of the Malaysia Chapter of AsBAA, we are excited about being part of the Subang Regeneration initiative led by Malaysia Airports, a significant milestone taking Business and General Aviation in Malaysia to a higher level consistent with Malaysia's ascent to a leading aviation nation in Asia-Pacific and beyond,” said Tan Sri Ravindran Menon, Chair of AsBAA Malaysia Chapter.
Meanwhile, the collaboration with MARA Corp, a Malaysian government-linked corporation (GLC), is in the nature of an industry-academia partnership to facilitate the human capital development for KLIA Aeropolis. Malaysia Airports will be leveraging on solutions developed and managed by MARA such as the Graduate Employability Training Scheme (GETS) Perantis Malaysia to provide competent talents thus boosting industrial and economic growth for Malaysia.
“MARA pioneered in the aerospace sector 50 years ago, setting up pilot and engineer training institutions in the 1960s. Aerospace has since emerged as a key pillar in MARA Corporation’s investment strategy, owing to Malaysia’s competitiveness and growth in this sector. To further catalyse this growth, the RM 200 mil (US$ 51.2 mil) GETS (Graduate Employability Training Scheme) was created, designed to meet with industry players such as MAHB and their stakeholders,” Acting CEO of MARA Corp, Muhammad Lukman bin Musa commented.
Apart from Badlisham, the document exchange ceremony was represented by CEO of Axis REIT Managers Berhad Leong Kit May, CEO of Senior Aerospace UPECA Kavan Jeet Singh, Regional Manager (Asia) of Skyways Technics Lucas Ansinelli, Vice Chairman of AsBAA, Gary Moran, and Acting CEO of MARA Corp, Muhammad Lukman bin Musa.
