Selangor to speed up aerospace recovery via S-Daico

The unit will be tasked to monitor and facilitate aerospace-related activities in the state, including financial matters

by AFIQ AZIZ/ pic by TMR FILE

SELANGOR aims to expedite the recovery of its aerospace industry with its new dedicated coordination office, Selangor Darul Ehsan Aerospace Industry Coordination Office (S-Daico), said Mentri Besar Datuk Seri Amirudin Shari (picture).

The unit will be tasked to monitor and facilitate aerospace-related activities in the state, including financial matters.

Amirudin said Selangor is confident the aerospace industry, heavily impacted by Covid-19, will rebound within the next couple of years.

“S-Daico is also expected to assist the state in putting together a post-Covid-19 aerospace development plan, as the industry is one of the sectors mostly impacted by the global pandemic,” Amirudin told a media conference after attending a briefing on Selangor Aerospace Action Plan 2020-2030 (SAAP) and the launching of S-Daico in Shah Alam yesterday.

The main mission of S-Daico now is to spearhead the SAAP plan over the next decade, which aims to push Selangor as an established aerospace hub in the region and consequently supports the Malaysian Aerospace Industry Blueprint 2015-2030 (MAIB).

The MAIB has set a vision for Malaysia to be the No 1 aerospace nation in South-East Asia and as an integral part of the global market by 2030, with an annual revenue of RM55.2 billion and more than 32,000 high-income jobs created.

The industry is growing at an average of 5% for the past 10 years, according to the Malaysian Investment Authority Development figures.

Malaysia generated a total of RM14.4 billion in revenue from the aerospace industry in 2018, up 6.7% from the year before.

The growth is expected to be stunted this year due to the coronavirus which has hit the global aviation businesses hard and directly affected demand from airlines companies and aircraft makers.

Amirudin, however, remains optimistic the S-Daico initiative could be the solution.

“With a dedicated agency like S-Daico, we believe that we could expedite the recovery process for the aerospace industry in Selangor and Malaysia,” Amirudin added.

The establishment of S-Daico, he said, will strengthen Selangor’s investment and trading portfolio in the aerospace sector, while attracting more foreign investors to the state.

The agency will provide updated information, advisory services and potential investment opportunities for industry players.

Currently, 62% of aerospace players in Selangor are mainly located at the state’s 3S hubs — Sepang, Subang and Serendah.

Amirudin said so far, 80% to 90% of land in Subang has been utilised, while in Serendah, the utilisation rate at the 348ha UMW High Value Manufacturing Park and Sepang’s 404ha KLIA Aeropolis currently stand at 40%.

“As for Sepang, the state is currently working with a company to expand the maintenance, repair and overhaul, and manufacturing park on a 2,000 acres (809.4ha) land,” he added.

He said S-Daico will closely coordinate and monitor all aerospace development projects in the state which include financial allocation matters to ensure the success of SAAP.

Amirudin said the SAAP will be carried out in three phases, from Year 1 to Year 3, Year 4 to Year 7, and Year 8 to Year 10.

The masterplan targets several action areas, namely infrastructure, incentive, funding, education and training, regulations and market access.

This year, the government aims to have more than 70% of aerospace companies to be based in Selangor.

“The plans will be in accordance with the state’s financial capabilities, expertise and the economic situations.”

Amirudin said the establishment of S-Daico was made last year after obtaining the state executive council’s approval. He said the special unit, which is the first established at the state level, is similar to the function of the National Aerospace Industry Coordinating Office or Naico, set up by the Ministry of International Trade and Industry in 2015.