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Malaysian Investment Development Authority inks MoU for collaboration on KLIA Aeropolis and Subang Aerotech Park initiatives

Malaysian Investment Development Authority inks MoU for collaboration on KLIA Aeropolis and Subang Aerotech Park initiatives

The Malaysian Investment Development Authority
(MIDA) inked a Memorandum of Understanding (MoU) with the Malaysia Airports
Holdings Berhad (MAHB) to further collaborate in the promotion and facilitation
of activities relating to the KLIA Aeropolis and Subang Aerotech Park

The signing of the MoU was done by MIDA
Deputy CEO Datuk N. Rajendran and MAHB acting Group CEO YM Raja Azmi Raja
Nazuddin at the MIDA headquarters.

MIDA is the government's principal promotion
agency under the Ministry
of International Trade and Industry
(MITI) to oversee and drive
investments into the manufacturing and services sectors in Malaysia. MIDA
continues to be the strategic partner to businesses in seizing the
opportunities arising from the technology revolution of this era.

Malaysia Airports is one of the world’s
largest airport operator groups in terms of number of passengers handled. It
manages and operates 39 airports in Malaysia and one international airport in
Istanbul, Turkey. The 39 airports in Malaysia comprise of five international
airports, 16 domestic airports and 18 Short Take-Off and Landing Ports.

According to the report made by Bernama, the
main objective of the MoU is to explore potential areas of collaboration
between MIDA and Malaysia Airports in order to facilitate foreign direct
investments into Malaysia through the promotion and implementation of
investments that would achieve value to the national economy.

The first focus will be on the KLIA
Aeropolis, a flagship airport city development within the 100-square kilometre
of KLIA land in Sepang, Selangor. The second focus will be on the
implementation of the Subang Airport Regeneration Initiative.

KLIA Aeropolis is centred around three core
clusters: Air Cargo & Logistics; Aerospace & Aviation; and Meetings,
Incentives, Conferences and Exhibitions (MICE) & Leisure. It shall focus on
the off-terminal real estate development that is synergistic with Malaysia
Airports' existing airport operations.

For the Air Cargo & Logistics cluster,
a 60-acre of land for the ASEAN regional e-Commerce with Cainiao will be
developed. This is set to double KLIA's air cargo volume from 0.7 million
tonnes per annum to 1.3 million tonnes per annum by 2028.

KLIA Aeropolis is expected to additional
passenger and cargo traffic to KLIA which will contribute to the global
competitiveness of Malaysia by enhancing activities centred on increasing

The Subang Airport Regeneration Initiative,
which is a strategic initiative to revitalise the Subang Airport ecosystem is
being embarked on by the Malaysia Airports. The Subang Airport is being envisioned
as a vibrant city airport, a hub for business aviation and a complete aerospace

The Subang Aerotech Park has been
identified as a key catalyst to the aerospace sector in Malaysia and being positioned
to be the leading aerospace hub within South East Asia. Among its strategic
advantages are its growing ecosystem maturity, vicinity to the KL city centre,
excellent transport network, highly accessible amenities and an urban
population supplying ready-manpower.

Raja Azmi said that a projected 5,000
high-value jobs will be created upon completion of the regeneration initiative
at Subang Aerotech Park.

Both the KLIA Aeropolis and Subang Airport
Regeneration Initiative shall be carried out in alignment with Malaysia
Airport's goals and aspirations in championing the Industry 4.0 principles. The
two projects will implement state-of-the-art facilities and advanced
technologies such as automated and digitised facilities systems, green
technology, and high-specification build-to-suit facilities to be integrated
within a synergistic ecosystem development.

Datuk N. Rajendran shared that MIDA acts as
a conduit by working with entities such as MAHB to bring together the industry
and other stakeholders to create fresh and exciting collaborations. The Agency
is confident that these efforts will contribute in the long term to provide an
environment for businesses to thrive.

He added that having the right
infrastructure and facilities in place in order to cater to the requirements of
businesses and can provide quality business and job opportunities to Malaysians.

He concluded that both MIDA and MAHB will
gain from this partnership. MIDA will be able to better facilitate the interest
of the investors while MAHB will be able to leverage the close relationship
MIDA has with the industries. This collaboration is expected to translate to
more investments coming in to Malaysia, particularly for the logistics and
aerospace industries.  


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