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Malaysia Airports Further Propels Subang Regeneration Initiative By Inking Partnership With Two International Aerospace Players

27 MARCH 2019

LANGKAWI – Malaysia Airports signs partnership agreements with two global aerospace players namely Boustead Projects Limited and TP Aerospace Malaysia at the Langkawi International Maritime and Aerospace (LIMA) 2019 earlier today to commemorate the parties’ commitments in propelling the Subang Airport Regeneration Initiative. Present at the ceremony were the Minister of Transport Malaysia, YB Loke Siew Fook; Mentri Besar of Selangor, YAB Tuan Amirudin Shari; Malaysia Airports chairman, Tan Sri Datuk Zainun Ali; Malaysia Airports group chief executive officer, Raja Azmi Raja Nazuddin; Boustead Projects Limited deputy chairman and executive director, Wong Yu Wei; and TP Aerospace Malaysia Sdn Bhd managing director and head of operations APAC Ng Seok Bee.

According to Raja Azmi, “Malaysia Airports is committed to elevate Malaysia’s positioning to become Asia Pacific’s preferred MRO hub through concerted developments at Subang Airport and KLIA Aeropolis. Subang Aerotech Park is estimated to attract RM1billion of investment, both locally and internationally and support over 5,000 jobs including high skilled workers, within the next 5 years. We are always striving to work with various aerospace specialists partner in materialising these benefits.”

The first partnership agreement was between Malaysia Airports and Boustead Projects Limited, a leading industrial real estate solutions provider which is based in Singapore. The activities under this partnership will be carried out through a Joint Venture Company (JVCo) in which Malaysia Airports and Boustead Projects will indirectly and respectively hold 30% and 70% of the shareholding. The partnership will focus on the development and management of an aerospace and high-tech park within the Subang Aerotech Park, providing Build-to-Suit (BtS) solutions for customised, high grade industrial facilities to be leased to tenants in the aerospace industry.

Wong said, “Malaysia, in particular Selangor, is expected to continue playing an important role in the Asia Pacific’s growing MRO market for aircraft.  Boustead Projects’ partnership with Malaysia Airports will allow us to further expand our overseas presence in a high value sector where we are able to add value, given our integrated and growing capabilities across design-and-build and development, and our experience and track record in delivering about RM1.4 billion in projects for the aerospace sector totaling over 2.1 million square feet in gross floor area.  In particular, our track record at Singapore’s Seletar Aerospace Park includes 10 projects for the likes of Airbus, Bell Helicopter, Bombardier, Hawker Pacific, Rolls-Royce and Safran.  We are leading the way in helping our clients in high-tech industries to transition to Industry 4.0 centres of excellence with market-leading methodologies including 7D building information modelling, virtual design and construction, design for manufacturing and assembly, augmented and virtual reality, drone technology and integrated digital delivery.”

The second partnership agreement was between Malaysia Airports and TP Aerospace Malaysia Sdn Bhd (TPAM) that will involve an estimated investment of RM 2M. TPAM is one of the current 8 MRO facilities under the TP Aerospace Group headquartered in Copenhagen, Denmark. TP Aerospace is the leading aftermarket supplier of wheels and brakes, carrying the largest ready-to-go wheel and brake inventory. In mid-2018, TP Aerospace launched a new business strategy and announced that within 2 years, the company will open 11 new locations around the globe to provide an even better service and move closer to its valued customers. This ambitious growth plan is called Green Sunrise.

TPAM has obtained approval from the Civil Aviation Authority Malaysia (CAAM) in January 2019 and has commenced operations as the first new MRO facility in the company’s Green Sunrise strategy. Through this partnership, TPAM has been offered tenancy at the MRO Centre in Subang Airport for their office, workshop, and warehouse facility.

Ng explains, “TP Aerospace was founded in 2008 and aims to service airline customers all over the world from 18 different strategic locations by 2020, supporting more than 1000 aircraft on contract and employing 500 employees worldwide.”