MALAYSIA AIRPORTS WELCOMES GLOBAL AEROSPACE PLAYER INTO SUBANG AEROTECH PARK
13 March 2018
Synergistic Collaboration By Malaysia Airports, Axis REIT And Senior Aerospace As Part Of Initiative To Revitalise The Subang Aerospace Ecosystem
SUBANG – A ground breaking ceremony was held today in Subang Aerotech Park for Senior Aerospace UPECA’s built-to-suit manufacturing plant and office facility that will serve its global supply chain. This new facility will sit on a 7-acre plot within the 60-acre Subang Aerotech Park as part of Malaysia Airports’ initiative to revitalise the Subang aerospace ecosystem.
Senior Aerospace UPECA is part of the Senior group of companies, an international manufacturer of high technology components and systems. This new 178,000 square feet facility fully equipped with state-of-the-art automation technology in aerospace manufacturing will be developed by Axis-REIT, Malaysia’s first and largest Islamic Business Space and Industrial Real Estate Investment Trust (REIT). This 7-acre plot from Malaysia Airports has been subleased to Axis-REIT for a tenure of 49 years and the construction of the facility will begin in the first half of 2018 and handed over to Senior Aerospace UPECA by year end.
According to Malaysia Airports managing director Datuk Badslisham Ghazali, “We are proud to be breaking new ground with Axis REIT in providing this facility. Our partnership is based on a unique built-to-suit lease back model which aims to offer customised, high grade industrial facilities to end tenants specialising in high value, high tech manufacturing and component MRO.”
He explained that following the success of this collaboration, Malaysia Airports will be looking to complete the development and management of Subang Aerotech Park based on the same business model.
“We estimate this park to attract over RM1 billion in investment, both locally and internationally, supporting over 5,000 jobs within the next five years. With approximately 70 aerospace companies already based within the Subang aerospace ecosystem, the Subang Aerotech Park will further provide platform to build the Aerospace SME supply chain, creating a complete aerospace ecosystem. This is in line with the government’s intention as outlined in the Malaysia Aerospace Industry Blueprint 2030 that aims to make Malaysia the number one aerospace nation in South East Asia. We also expect that these developments will have a positive effect for the Aerospace & Aviation cluster in our KLIA Aeropolis development,” Badlisham added further.
The ground breaking ceremony was officiated by the Minister of International Trade and Industry (MITI) YB Dato’ Sri Mustapa Mohamed, who said, “The aerospace industry has been identified as one of the catalytic sub-sectors under the 11th Malaysia Plan targeted to contribute RM55.2 billion revenue while creating 32,000 job opportunities by 2030. The efforts taken by the Government and industry have enabled the industry to take-off and soar to greater heights. MITI through National Aerospace Industry Coordinating Office (NAICO) will continue to facilitate the growth of the aerospace industry by providing a facilitative environment and eco-system. We hope to see further development of the aerospace industry in Malaysia in the years to come”.
As an ecosystem developer, apart from building partnership with delivery partners, Malaysia Airports has also formed alliances with various government and quasi-government agencies such as MIDA, Invest Selangor ad MARA Corp. These alliances and support are meant to address broader issues such as investment and business facilitation, as well as human capital sourcing and development.
Also present at the event were the British High Commissioner to Malaysia, HE Vicki Treadell, chairman of the Senior group Charles Berry, chief executive of Axis-REIT Leong Kit May and chairman of Malaysia Airports YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail.