Selangor aims to expand aerospace parks

The 81ha land will complement the 3 existing aerospace industrial areas which are being developed


SELANGOR expects to expand one of its aerospace parks to attract more industry players to work with the state in one of the fast-growing sectors around the globe.

During the tabling of Selangor Budget 2020 last Friday, Mentri Besar Amirudin Shari (picture) said the government has identified about 81ha of land for the purpose.

Currently, Selangor is already a house for aerospace-related firms, with 62% of the total 230 companies mainly located in Sepang, Subang and Serendah, also known as the “3S” areas.

“In the efforts to make Selangor the leading investment location for the aerospace industry, we will further strengthen our cooperation with the private sector to develop the aerospace industry area by 2020.

“An area of 2,000 acres (81ha) has been identified and will be announced when all requirements are finalised. It will complement the existing aerospace industrial areas which are being developed,” Amirudin told the state assembly, without revealing the land’s exact location.

In earlier reports, he said the aerospace-designated land in Subang has nearly reached its maximum capacity, while the utilisation rate at the 348ha UMW HighValue Manufacturing Park in Serendah and the 404ha KLIA Aeropolis in Sepang currently stand at 30% and 50% respectively.

The Subang Regeneration Initiative is currently being developed by Malaysia Airports Holdings Bhd and involves 430.18ha of land to build, among others, the 10.5ha Subang Aerotech Park in the area.

The airport operator aims to attract RM1 billion worth of investment within the next five years, an effort to make the place the preferred hub for maintenance, repair and overhaul in Asia Pacific.

Selangor senior executive councillor for investment, industry and commerce and small and medium enterprise Datuk Teng Chang Khim said the new site will be established in one of the 3S areas.

“This is basically a developer’s land, but the state government will play a very active role in its promotion and will also offer a special incentive, which will be announced later,” he told The Malaysian Reserve, without entailing details about the development.

“Selangor will be more attractive than its regional competitors and has more to offer to the aerospace industry players,” he added.

Meanwhile, the state had also announced its plan to establish Darul Ehsan Aerospace Industry Coordination Office, a new unit parked under Invest Selangor Bhd, tasked to coordinate aerospace-related projects in the state.

“This body functions like the National Aerospace Industry Coordinating Office (Naico) under the Ministry of International Trade and Industry (MITI), but this one is established at the state level. It will be a department under Invest Selangor which is under my purview,” Teng said.

Naico was formed in August 2015, with the role to coordinate the overall aerospace industry development activities in Malaysia.

The 2015-2030 blueprint aims for Malaysia to be the leading aerospace nation in South-East Asia by 2030, by creating 32,000 high-skill jobs and have an industry which is valued at RM55.2 billion.

According to Naico’s data, the aerospace industry’s total revenue has been increased from RM11.8 billion in 2014 to RM14.4 billion last year, mainly driven by exports of aircraft parts and components — tripled from RM2.88 billion in 2014 to a record high of RM8.48 billion in 2018.

MITI aims to rake in up to RM16 billion in revenue from the total segment in the aerospace industry for 2019. As for Selangor, Amirudin forecasted the state aerospace industry to grow about 8% this year, by registering more aerospace players in Selangor to reach up to 70% of total market shares from the current 62%.

He said the projection is in line with the new Selangor Aerospace Cluster Roadmap 2020-2030 which was developed by the state in strengthening its footing in the aerospace sector.

In the roadmap, a total of 30 action plans and seven key initiatives have been identified, which include infrastructure, incentives, financing, training and education, rules and laws, as well as market access.