The MoU aims to advance the development and marketing of designated areas for business aviation and aerospace segments as part of the Subang Airport Regeneration Plan

FARNBOROUGH, UNITED KINGDOM – Malaysia Airports has signed a Memorandum of Understanding (MoU) with Menteri Besar Selangor Incorporated (MBI) with the aim of advancing the development and marketing of Zone 3 and Zone 4 at Lapangan Terbang Sultan Abdul Aziz Shah (Subang Airport). The development of these zones, designated for business aviation and aerospace segments under the Subang AIrport Regeneration Plan (SARP) will include the creation of a new area dedicated to business aviation hangars, and the amplification of the aerospace ecosystem catering to aerospace manufacturers, assemblers, and component MRO operators. This collaboration is expected to create a robust ecosystem that fosters innovation, sustainability, and economic growth in the region.

The collaboration was commemorated in a document exchange ceremony between Malaysia Airports and MBI at the Farnborough International Airshow 2024 in the United Kingdom on 22 July 2024. Malaysia Airports was represented by its Head of KLIA Aeropolis Sdn Bhd (KLIA Aeropolis), Randhil Singh, and MBI was represented by its Group Chief Executive Officer (GCEO), Ts. Saipolyazan M Yusop. The two parties are part of the Malaysian Pavilion entourage at the renowned bi-annual global trade exhibition for the aerospace and defence industries. Also present during the event were Chief Minister of Selangor, YAB Dato' Seri Hj. Amirudin bin Shari, Selangor State EXCO for Investment, Trade and Mobility, YB Ng Sze Han, High Commissioner of Malaysia to the United Kingdom, H.E Dato' Zakri Jaafar and Chief Executive Officer of the National Aerospace Industry Corporation (NAICO) Malaysia, Prof Ts. Shamsul Kamar Abu Samah.

Randhill stated that this collaboration with MBI is a significant milestone in our efforts to position Subang Airport as a global hub for aviation and aerospace, " By combining our resources and expertise, we aim to drive sustainable economic growth and create new opportunities for the local community. This partnership marks a pivotal step in enhancing Malaysia's position as a key player in the global aviation and aerospace industries. The SARP development is poised to become a cornerstone of Malaysia's economic growth, offering state-of-the-art facilities and a dynamic environment for businesses to thrive. "

"MBI is thrilled to partner with Malaysia Airports to unlock the immense potential of Zone 3 and Zone 4 at Subang Airport. This strategic collaboration aligns perfectly with the Selangor First Plan (RS-1), particularly its focus on developing growth corridors in the state. By creating a dedicated hub for business aviation and amplifying the aerospace ecosystem, we expect to generate significant economic benefits for the region. This development directly supports the goals of the State, whereby the Subang Airport is primarily aimed to serve business aviation sectors while KLIA Aeropolis serves the commercial aviation sectors, this clear delineation will provide clarity for the development of surrounding areas in both Subang and Sepang, including economic spillover into our economic corridors of SMG-ZPE and IDRISS . Our collaboration will position Selangor ahead of the curve, making it the state of choice for aviation investors in Malaysia.

The proposed strategic collaboration between MBI and Malaysia Airports is expected to increase exposure and create highly focused promotional efforts at attracting industry players, including leading aerospace manufacturers, MRO service providers, and research institutions. This will foster a robust ecosystem for innovation and job creation, positioning Selangor as a premier investment destination in the Southeast Asian aerospace sector," said Ts. Saipolyazan.

In February 2024, the Government of Malaysia approved the SARP developed by Malaysia Airports to upgrade and develop Subang Airport and its surrounding 477.33 hectares (1,179.5 acres) into three main segments i.e. business aviation, aerospace ecosystem and city airport.

The key thrusts of the SARP include the business aviation segment which focuses on fixed-wing aircraft and helicopters, providing a full suite of business aviation services such as fixed base operator, hangarage/workshops for maintenance, repair, and operations (MRO), apron parking, and ground handling services. Additionally, the aerospace ecosystem segment will feature the Subang Aerotech Park, serving as the flagship of the airport industrial cluster, centred on high-tech manufacturing, subassembly, and MRO. Finally, the SARP includes the development of an integrated city airport terminal and a mixed development of a smart city airport with terminal-linked commercial outlets.

The partnership between MAHB and MBI Selangor is expected to attract high-value investments for the leasing of hangars, industrial lots and buildings on approximately 55.41 acres for Zone 3 and 33.88 acres for Zone 4. The parties will also discuss potential collaboration on off-terminal real estate development at KLIA Aeropolis, the nation's flagship airport city development, which encompasses a vast aerospace park and aeronautical support zones surrounding KL International Airport (KLIA).