The development is expected to run more smoothly with support from the state govt
By AFIQ AZIZ / Pic By MUHD AMIN NAHARUL
THE Selangor state government’s foray into the aerospace business is progressing well with the 24.3ha Subang Aerotech Park development expected to be completed on time, as outlined by the Selangor Aerospace Action Plan (SAAP).
National Aerospace Industry Coordinating Office head Shamsul Kamar Abu Samah (picture) said SAAP, which was launched in February, set a clearer direction for Selangor’s aerospace business activity, which is also supported by the state administration.
The venture is also boosted by the presence of UK-based Senior Aerospace UPECA that had committed its investment in the area in the first half of this year.
“With the action plan, we believe that the Subang development could be faster because of the better support received by the local government, which is not limited to only infrastructure.
“Promotional activities are also being carried out by Invest Selangor Bhd,” Shamsul Kamar told The Malaysian Reserve in an interview last Friday.
SAAP is expected to strengthen policies for seven targeted areas, namely infrastructure, regulations, market access, incentives, funding, education and training.
Mentri Besar Amirudin Shari recently announced that the Selangor subsidiaries are also in the middle of studying the possibility of forming aerospace companies so that the state could directly profit from the multi-billion businesses.
“The aerospace industry has been in Selangor for years, but we were not directly involved in these businesses.
“Now, we would open companies under our subsidiaries to explore this sector, share the revenue and grow together,” he told reporters in Petaling Jaya, Selangor recently. Selangor is already home to 62% of the total 230 aerospace companies in Malaysia at three hubs — Serendah, Sepang and Subang.
Shamsul Kamar said Malaysia Airports Holdings Bhd is currently driving the aerospace development in Subang and has managed to attract the international high-technology components maker, Senior plc.
He added that the establishment of the machining and aero parts producer’s second facility in Subang is also expected to attract more Tier-1 aerospace manufacturers.
Following the opening of the new 180,000 sq ft aerospace outlet last month, Senior plans to increase manufacturing capacity by 140%.
Currently, the company produces almost 60,000 pieces of aircraft parts in Shah Alam, Selangor.
In 2014, the British aircraft parts maker acquired UPECA Technologies Sdn Bhd, a Malaysian-based manufacturer of high-precision engineered components for £75.5 million (RM410.7 million at the time).
UPECA then supplied parts for Senior’s civilian aircraft programmes, which included works on the Airbus A320 and A350, as well as the Boeing 787 Dreamliner.
“So with the company’s merger, transfer of knowledge and know-how can be done between the branches. It is the advantage of being associated with a bigger company — when they find footing in Subang, it would be the catalyst for the aerospace park.
“We are expecting more investors to come and see the viability of Subang for themselves,” Shamsul Kamar said.
In its original master plan last year, Subang Aerotech Park is expected to attract over RM1 billion in investments, both locally and internationally, supporting over 5,000 jobs within the next five years.
It is part of the huge Subang Regeneration Initiative blueprint that involves-up to 430.18ha of land, including its business aviation and airport activities clusters.