By RAHIMI YUNUS
Malaysia Airports Holdings Bhd’s (MAHB) direction of its regeneration project of the Subang Park area is expected to remain intact with no drastic change despite the shift in power at the federal government’s administration.
MAHB land development GM Randhill Singh (picture) said there is also no misalignment of focus in the company’s development plan in Subang, especially initiatives on plots that involve Majlis Amanah Rakyat (Mara), the other major player in the area.
Subang, touted as the country’s next aviation and aero-space hub after Sepang, became the centre of attention in the last few years among major players — MAHB, Mara and to some extent, the Selangor state government — each with a different vision of how the area would be developed.
At present, it is clear MAHB is developing most part of the land in Subang that belongs to the company under the Subang Airport Regeneration Initiative to attract global aerospace and aviation manufacturers. Mara, with its previous grand plan Asia Aerospace City (AAC), is adding engineering services and talent development pieces into the whole ecosystem.
“We see Mara as a partner in developing the ecosystem. It is huge, requires a lot of investment, leadership, focus and attention.
“We welcome such player to come in and put together the ecosystem,” Randhill said at a memorandum of understanding signing ceremony between MAHB and Malaysian Investment Development Authority (Mida) in Kuala Lumpur last Friday.
The development on land plots owned by the Selangor state government in Subang has remained sketchy on how it will add to the whole Subang ecosystem, which is home to about 70 aerospace companies now.
However, interest now are zooming in on the Selangor state government’s plan since, unlike before, it is now on the same side with the new federal government.
Mara is expected to continue with its planned RM1.7 billion AAC, an “edubiz” centre envisioned to supply the human resource needs within the hub.
The project is supposed to be spearheaded by its investment arm, Pelaburan Mara Bhd, and would be operated by another subsidiary, Mara Aerospace and Technologies Sdn Bhd.
The AAC’s first phase of development entails Mara’s aerospace education hub under Malaysian Institute of Aviation Technology, or MIAT, and a maintenance, repair and over- haul (MRO) centre operated by Mara-owned Asia AeroTechnic Sdn Bhd.
MAHB said these developments under Mara are not within its land perimeter of Subang Aerotech Park or the Subang Airport Regeneration Initiative.
The 24.28ha development area is dedicated to aerospace manufacturers and MRO to set up base in Subang.
MAHB secured the first tenant for its Subang Aerotech Park, namely Senior Aerospace UPECA, in March. The UK-based manufacturer and assembly’s built-to-suit plant is targeted to be handed over this December.
Subang Aerotech Park is expected to attract more than RM1 billion in investments within the next five years, supporting over 5,000 jobs.
MAHB has set the target for Subang Aerotech Park to achieve a steady state by 2025 towards maturity.
Mida has projected the Malaysian aerospace industry to rake in RM55 billion by 2030, or RM20.4 billion from MRO, RM21.2 billion from manufacturing and another RM13.6 billion from engineering and design services.
For the first quarter of 2018, Mida approved investments of RM12.5 billion from 137 manufacturing projects, an increase of 89% in terms of value compared to RM6.6 billion from 144 manufacturing projects last year.
Foreign investment in approved manufacturing projects doubled to RM10 billion from RM4.2 billion last year for the same period, where China accounted for 62%, or RM6.2 billion.