MAHB to invest RM1.3b to transform Subang Airport into Asia-Pacific aviation hub
19 Apr 2021
SEPANG: Malaysia Airports Holdings Bhd (MAHB) is eyeing a total investment of RM1.3 billion for Subang Airport’s (SZB) regeneration development that will transform it from an airport operator to an ecosystem master developer and aviation hub in the Asia Pacific.
KLIA Aeropolis Sdn Bhd head Randhill Singh said RM300 million would be needed for common infrastructure and RM1 billion for building lettable facilities such as hangars, factories, and workshops and for maintenance, repair, and operations.
He said SZB would leverage the same global technology platforms and vendors used in Kuala Lumpur International Airport to have access to global practices and standards, thus ensuring synergy in passenger experience.
“It is imperative for Malaysia to consolidate its position as a hub across these segments, namely, business and commercial aviation, helicopter ecosystem, air cargo and e-commerce logistics, centre of aviation new technologies, aerospace manufacturing and MRO in the region.
“Having one complementary ecosystem between KLIA and Subang Airport allows us to ensure that we have the leadership position in APAC,” he told a media briefing on the development today.
KLIA Aeropolis is MAHB’s subsidiary tasked to undertake land development for the airport operator’s network of airports nationwide.
Randhill said the five-year comprehensive master plan, which is expected to be completed by end-2025, would be financed with internally generated funds by the airport operator and in partnership with industry players.
He said the investment would be mainly for lettable building facilities such as hangar, factories, aerospace manufacturing plants and MRO.
According to him, the whole project would likely generate over RM5 billion economic output in the next five years, creating more than 10,000 jobs.
“Currently, we’ve developed about 60 acres (24.28ha), representing 25% of the total 250 acres (101.17ha).
“We expect a positive return, a payback period within 10 years for the whole development,” he said.
Randhill said MAHB has secured 40-50% take-up for tenants within the entire development for both airside and landside, with the new facilities being able to accommodate 89 single-aisle aircraft and helicopters on dedicated apron and common use apron.
He said Subang Airport has over 60 aerospace and aviation companies involving turbo prop, business aviation, helicopters, MRO (ATR and business jets), aero-manufacturing and logistics.
“The ecosystem generates about RM1.7 billion of annual revenues with 4,000 high-skilled jobs. We expect the workforce to triple over the next five years,” he added.
On progress, Randhill said the initial development for the masterplan would commence in early 2022 to establish two MRO facilities for helicopter, light aircraft and business jets, to be operationalised by 2023.
He said two MRO players are expected to sign a few agreements in the coming months.