PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has submitted a comprehensive strategic plan for the long-term development of Lapangan Terbang Sultan Abdul Aziz Shah (LTSAAS), or Subang Airport, to the government.
The airport operator, which runs 39 airports in Malaysia and one international airport in Turkey, said the plan is premised on three focus areas, namely aerospace ecosystem, business aviation and urban community airport. “It is meant to propel LTSAAS into becoming the preferred aerospace and business aviation hub in Asia Pacific in the next five years,” MAHB said in a statement yesterday.
It added the plan had been verified through extensive benchmarking and stakeholder engagements, and further validated by independent parties.
MAHB group chief executive officer Datuk Mohd Shukrie Mohd Salleh said the group was ready to undertake the LTSAAS regeneration plan as it had sufficient internal cash reserves for the exercise.
“The plan requires infrastructure investment of RM300mil staggered over the next five years. This is well within our capability as we still have a strong cash and money market position of RM1.6bil, with RM914mil available for the Malaysian operations,” he said.“The funding for ready-built or build-to-suit facilities can be easily facilitated via a combination of internal cash as well as project financing options,” he added.
Shukrie noted despite the pandemic, the group retained the credit ratings of AAA by RAM Ratings and A3 by Moody’s investor Services, which was on par with Malaysia’s country credit ratings.
He said since being mandated by the government in 2005 to develop LTSAAS into an international aerospace park, the group had grown the airport’s ecosystem by four times, attracting the presence of 60 leading brand names and facilitating capital inflows of over RM500mil.
“It is a location magnet for international players that has also benefited local players,” he said.
At present, there are over 35 local aviation operators, of which more than half are bumiputera companies, at the Subang Airport.
“Moving forward, MAHB’s LTSAAS Regeneration Plan will grow the ecosystem further by three times, doubling the number of global and local operators to more than 100 that will create and support 19,000-strong high skilled workforce,” Shukrie said.
“It will spearhead Malaysia’s transition into high technology driven industry revolution (IR) 4.0 industries and high-income nation, with a projected value of over RM10bil to the national economy,” he added.
He noted the plan was in line with the strategic thrusts identified in the government’s Shared Prosperity Vision 2030 and would achieve the aspirations of the Malaysian Aerospace Industry Blueprint 2030.