MAJLIS Amanah Rakyat (MARA) will work closely with Malaysia Airports Holdings Bhd (MAHB) to find the right balance to fit their respective multi-million mega aerospace projects in the right pockets within the areas surrounding Subang Skypark in Selangor.
MARA Aerospace and Technologies Sdn Bhd CTO Naguib Mohd Nor (picture) said the two parties are now striving to harmonise all the plans so that their projects would be complementary.
While MARA is expected to continue with its planned RM1.7 billion Asia Aerospace City (AAC), an “edubiz” centre envisioned to supply the human resource needs within the hub, MAHB is moving forward with its brand new Subang Regeneration Initiative that is estimated to be worth RM400 million.
“We will consolidate with their plan and utilise it before moving to any other new development,” Naguib told The Malaysian Reserve (TMR) in a recent interview.
He added that the AAC team is currently awaiting the formal direction by MARA to initiate the project’s next stages.
For the time being, the AAC team will be focusing on its current capacity to develop the education and business centre within the aerospace realm, comprising the Malaysian Institute of Aviation Technology and MARA-owned Asia AeroTechnic Sdn Bhd.
“As the concept is edu-biz, we have to ensure that the education institution is built first,” Naguib said.
He said everything has to be planned accordingly as there are other development activities taking place on other properties surrounding the areas.
As for MAHB, the regeneration of Subang is taking place smoothly to make way for the brand new Subang Aerotech Park that would utilise the company’s 24.28ha land.
In an emailed reply to TMR, MAHB MD Datuk Mohd Badlisham Ghazali said the group is looking to revitalise and regenerate the current airport and surrounding ecosystem.
“We will maximise the potential opportunities from its developed and undeveloped landbank,” Mohd Badlisham said, while declining to comment on MARA’s AAC progress.
He said MAHB would continue to work with any interested industry players to spur the Subang aerospace growth.
While MARA focuses on it s edu-biz concept, Mohd Badlisham said MAHB’s Subang regeneration exercise would focus on three strategic initiatives — the city airport, business aviation nexus and the aerospace ecosystem.
As part of the aerospace ecosystem, Mohd Badlisham said the ongoing development is Subang Aerotech Park which comprises two phases, namely the maintenance, repair and overhaul (MRO) centre — which would be housed at the former Customs Department building — and the new green field developments.
On the new land development, he said MAHB will utilise the whole of its 24.28ha unused parcels, which will consist of manufacturing plants, MRO services and precision engineering works.
The manufacturing segment of the regeneration project comprises facilities for aero structures, components, tools and jigs.
As for the MRO parcel, the focus would mainly be on component and engine services.
Mohd Badl isham said MAHB’s regeneration initiative is expected to provide centralised logistics nucleus as well as other commercial offering for the industry players.
“The gross development cost of the Subang Aerotech Park development is approximately RM400 million,” he said.
Last week, MAHB announced the construction of Upeca Technologies Sdn Bhd’s — a tier 1 aerospace manufacturer — plant and office at the Subang Aerospace Park, which is slated to commence in April.
It will be a built-to-suit project on a 1.66ha piece of land, developed by Axis REIT Managers Bhd and expected to be completed by year-end, housing the Upeca manufacturing centre, storage and distribution of aerospace parts.
TMR also recently reported that MAHB aims to establish the country’s first dedicated private jet hub and terminal on their Subang’s land by 2021 — as part of the regeneration initiative.
Mohd Badlisham said the project would accelerate the increasing demand for business jets in Malaysia from about 50 jets to more than 150 aircraft within the next five years.
Apart from the plans that have been outlined by MARA and MAHB, the government has also introduced an 8.14km extension rail line that would connect Subang Skypark with Subang Jaya KTM station this year.
The train, apart from catering to airline passengers travelling to and from the terminal, is also expected to enhance business connectivity within the Subang Aerotech Park.