MAHB Subang Aerotech Park Phase 1 to complete by year-end

Its establishment is part of the 2nd National Aerospace Industry Blueprint 2030 led by MITI


The 24.28ha Subang Aerotech Park project development is currently on track with its first phase expected to be completed by year-end.

The project owner, Malaysia Airports Holdings Bhd (MAHB), said at present the group has already concluded deals with some delivery partners to build one of the first phase developments for the project.

“We have a catalyst namely Axis REIT (Real Estate Investment Trust) as our delivery partner, who will build a builtto- suit facility and lease back to Senior Aerospace — a Tier 1 aerospace player,” MAHB MD Datuk Mohd Badlisham Ghazali (picture) told The Malaysian Reserve (TMR).

It was reported in November last year that the company has proposed a sublease of its 2.83ha project land to RHB Trustee Bhd, the trustee of Axis REIT, to build a single-storey manufacturing plant cum office building.

The proposed gross built-up area is approximately around 178,978.6 sq ft, inclusive of ancillary buildings and external elements to serve the manufacturing plant operation.

“The facility is expected to be operational by the end of 2018,” Mohd Badlisham said.

“As for the remaining land area, we will be undertaking an open process to seek and partner a delivery partner to develop and manage the entire park.

This is expected to conclude in the second half this year,” he added.

Last October, TMR reported that MAHB will start the construction of maintenance, repair and overhaul (MRO) centre this year to service its entire customer.

The group has also signed memoranda of understanding with South Korea-based Gyeongnam Techno Park and Danish aircraft maintenance company Skyways Technics A/S to collaborate on the project.

The project will become a built-to-suit facility and a longterm lease property for manufacturing (aero structure, components, tools and jigs), MRO (component and engine), aerospace logistics, high tech and precision engineering, as well as amenities.

It is located adjacent to the Majlis Amanah Rakyat (Mara)-owned RM1.7 billion Asia Aerospace City (AAC).

AAC is expected to be an aerospace ecosystem centre and the cluster will include MROs like Asia AeroTechnic Sdn Bhd (Mara’s subsidiary), engineering services, business consulting and investment centre, research and development centre, education institution and living quarters.

The city is expected to offer up to 32,000 job opportunities.

Apart from MAHB, some of AAC plots that are included in the Mara’s master plan belong to the Selangor State government.

Selangor government, last year announced in its 2018 budget that General Electric International Inc (GE) would invest RM200 million in a high-tech LEAP Engine Services, in what would be the first LEAP engine service centre outside the US.

GE is currently operating an MRO service via its subsidiary, GE Engine Services Malaysia Sdn Bhd, located at the same surrounding area of MIAT and the proposed Subang Aerotech Park.

Both Selangor government and GE decline to comment on the update.

As of November last year, Subang Aerospace and Aviation Ecosystem has provided up to 3,200 jobs with the investment of RM400 million.

The establishment of Subang Aerotech Park by MAHB is part of the second National Aerospace Industry Blueprint 2030, led by the Ministry of International and Industry.