SEPANG (June 5): Malaysia Airports Holdings Bhd (MAHB) and Menteri Besar Selangor Inc have joined hands to develop Selangor Aero Park (SAP), an industrial zone in Sepang dedicated to aerospace-related manufacturing and supply chain industries, aligning with Malaysia's ambition to establish KLIA as Asean's leading air cargo hub.
SAP is set to span 600 acres within MAHB’s KLIA Aeropolis and holds a potential gross development value of RM2.3 billion, according to the airport operator.
The initial phase will encompass 200 acres, with half of this already secured by American aircraft engine supplier, GE Aerospace. GE Aerospace plans to develop its engine test cell and a maintenance, repair and operations facility for the region within this space.
The subsequent 400 acres will be progressively rolled out, contingent on infrastructure readiness and investor demand, MAHB added.
During the launch on Thursday, Transport Minister Anthony Loke Siew Fook said the development complements the government’s ambition to position KLIA as the region’s leading air cargo hub.
Loke stressed that KLIA is equipped with the necessary surrounding land and infrastructure to achieve this target. "No other airport in Asean has this kind of scale and connectivity. This gives us a competitive edge, especially in attracting high-value investments in the logistics and aerospace sectors."
The minister also highlighted that during China President Xi Jinping's state visit earlier this year, the economic powerhouse entered into an understanding with Malaysia to support KLIA as Asean's cargo hub.
"It means the major air cargo hub in Zhengzhou, China, will have direct cooperation with KLIA. So, we must take this opportunity to build on this strength, to build on this opportunity to make KLIA the leading cargo hub,” he said.
Selangor Menteri Besar Datuk Seri Amirudin Shari said SAP aims to attract other potential tenants, including industry giants such as Brazil-based aircraft manufacturer Embraer, original equipment manufacturer (OEM) giants Boeing and Airbus, as well as various small and medium enterprises in the supply chain.
Selangor currently accounts for 68% of Malaysia’s aerospace industry activity, a figure expected to surpass 70% by 2030, Amirudin said.
MAHB non-executive chairman Dr Nungsari Ahmad Radhi described SAP as a significant milestone for KLIA Aeropolis, following the lease agreement inked with the government in November 2022 that granted MAHB a 99-year lease and development rights over 8,537.13 acres of federal land in Sepang, which constitutes the KLIA Aeropolis.
"We are now on track to launch several key developments, beginning with SAP @ KLIA Aeropolis, demonstrating our unwavering commitment,” Nungsari said.
SAP, a key component of the Malaysian Aerospace Industry Blueprint 2030, is projected to generate RM55.2 billion in annual aerospace revenue and create over 32,000 high-income jobs by 2030, according to MAHB.