MMAG banks on aviation to catalyse next phase of growth
KUALA LUMPUR: Following the investment of more than RM150 million to fuel the growth of its aviation business, Bursa Malaysia-listed MMAG Holdings Bhd (MMAG) is banking on its aviation arm to unlock its next phase of growth and play a key role in unleashing Malaysia’s potential as a regional air cargo hub.
The investment will drive the planned expansion of MMAG’s aviation arm, MMAG Aviation Consortium Sdn Bhd (MAC), boosting the group’s competitive edge in the logistics industry and accelerating its revenue and earnings growth. In addition, MAC’s new state-of-the-art integrated logistics facilities will enhance KLIA’s capabilities, leveraging its strategic location and infrastructure.
MMAG chairman Tan Sri Mohd Khairul Adib Abd Rahman said: “We believe KLIA has the potential to become a central node in the global air cargo network, offering efficient, reliable, and competitive services that can surpass its regional counterparts.
“This is why we are making a significant investment of more than RM150 million in the expansion of our aviation arm at KLIA. We are determined to be a key player in transforming KLIA into a premier regional air cargo hub.
“While e-commerce demand is shaping up to be the key growth driver for air cargo, the conventional air cargo handling process is complex and lengthy, involving too many steps.
“Supported by our new integrated facilities, we see a golden opportunity to simplify and streamline this process. We plan to introduce pioneering, innovative solutions that will position Malaysia as the leader in efficient air cargo handling.”
This facility features an expansive 302,400 square feet automated cargo terminal, marking the first of its kind in KLIA. It has the planned capacity to process the cargo of up to 72 passenger aircraft, with full operational capability set to be achieved in three phases.
Located at Alibaba’s Cainiao Aeropolis Electronic World Trade Platform (eWTP) Hub at KLIA, with MAC as the anchor tenant, this terminal signifies a significant leap in enhancing the airport’s cargo handling efficiency and capacity. The KLIA eWTP Hub is one of Alibaba’s six global logistics hubs.
MMAG also announced the signing of a Memorandum of Collaboration with Menzies Aviation (SG) Pte Ltd (Menzies), part of Menzies Aviation Ltd.
Menzies Aviation is the world’s largest aviation services group by geographical coverage, offering a comprehensive suite of services, including ground handling, fuel services, and air cargo services at more than 250 airports in more than 60 countries.
Both MMAG and Menzies intend to work together to provide comprehensive ground handling and aviation services, leveraging their combined strengths and shared resources to achieve cost savings and operational efficiencies through innovation, automation, and optimised ground handling agreements.
In addition, as part of this collaboration, Menzies will assist MMAG in securing slots and traffic rights at various airports, supporting the expansion of this business.
MMAG expects this collaboration to contribute positively to the Group’s earnings by unlocking new revenue streams and business opportunities.
“From the group’s point of view, our investment in MAC will improve our competitive edge in the logistics sector, with aviation services complementing our strong presence in land freight.
“We expect to ride multiple market tailwinds here, including the diversification of global supply chains and FDI (foreign direct investment) into Asean, the explosive growth of ecommerce, and regional demand for premium seafood.”