MAHB sees huge potential in KLIA Aeropolis
KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) sees huge potential for expansion in the areas of air cargo and logistics, as well as aerospace and aviation in KLIA Aeropolis.
Acting chief executive officer (CEO) Raja Azmi Raja Nazuddin said KLIA Aeropolis, a flagship airport city development within the 100-square kilometre of the Kuala Lumpur International Airport (KLIA) land in Sepang, was attractive for potential investors given its huge landbank, which could accommodate three runways, an additional runway when the need arises, as well as space for a new terminal.
“We have been getting a lot of enquiries from huge global players who are keen to participate in the maintenance, repair and overhaul (MRO) arena.
“We believe this collaboration
We have been getting a lot of enquiries from huge global players who are keen to participate in the maintenance, repair and overhaul (MRO) arena.
with the Malaysian Investment Development Authority (MIDA) will increase confidence among investors that will result in something concrete,” he told reporters after the signing of a memorandum of understanding (MoU) between MAHB and MIDA yesterday.
Raja Azmi signed on behalf of MAHB while MIDA was represented by its deputy CEO Datuk N. Rajendran .
Under the MoU, both parties will explore the potential areas of collaboration to facilitate foreign direct investments into Malaysia, focusing on KLIA Aeropolis and the implementation of the Subang Airport Regeneration Initiative.
KLIA Aeropolis is centred around three core clusters, namely air cargo and logistics, aerospace and aviation, as well as meetings, incentives, conferences, exhibitions and leisure.
Under the air cargo and logistics cluster, MAHB and Alibaba’s logistics arm, Cainiao Network, would develop a 24.28- hectare regional eCommerce and Logistics Hub in KLIA Aeropolis as part of the Digital Free Trade Zone Initiative.
The eCommerce and Logistics Hub is set to double KLIA’s air cargo volume to 1.3 million tonnes per annum by 2028 from from 700,000 tonnes per annum currently.
MAHB Land Development general manager Randhill Singh said over the next two to three years, an additional 92.9 square metres of land would be developed, which would be able to accommodate five to 10 players in the hub.
Commenting on the Subang Airport Regeneration Initiative, Raja Azmi said this strategic initiative would revitalise the Subang Airport ecosystem, where it would be positioned as a vibrant city airport, a hub for business aviation and a complete aerospace ecosystem.
“Key initiatives and promotional programmes are mapped out to attract aerospace companies and populate the earmarked land area. It is now a work-in-progress and we expect Subang Airport to be in a ‘matured operation’ state by 2025,” he added.
Meanwhile, Rajendran said the aerospace and aviation industry was expected to be vibrant given that 60 per cent of the US$6.1 trillion (US$1=RM4.03) worth of aircraft production for the next 20 years would be supplied to this region.
By 2030, the MRO sector was projected to contribute a revenue of RM20.4 billion, aeromanufacturing (RM21.2 billion) and engineering and design services (RM13.6 billion), he said.
For the first three months of 2018, the aerospace industry registered approved investments of RM175.4 million from four manufacturing projects and RM8.59 million from one project. — Bernama
Raja Azmi Raja Nazuddin, MAHB CEO