SIA Engineering enters deal with Khazanah unit for Malaysia hangar facilities

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SIA Engineering has entered a memorandum of understanding (MOU) with Malaysian sovereign wealth fund Khazanah Nasional‘s wholly owned subsidiary Impeccable Vintage Properties (IVP), to lease two hangars, the Singapore-listed company said in a filing to SGX Tuesday. 

The hangars are located at the Sultan Abdul Aziz Shah Airport in Selangor, Malaysia (Subang), SIA Engineering said. 

The company said it will now work with IVP for a hangar technical assessment to ensure the refurbished hangars will be able to support the maintenance, repair and overhaul (MRO) of current and next-generation aircraft. 

“These hangars will strengthen our network of base maintenance facilities in the region, enabling us to cater to the varying needs and capabilities required by our customers,” Ng Chin Hwee, SIAEC’s CEO, said in the statement. “Along with our recently announced plans to acquire SR Technics Malaysia and POS Aviation Engineering Services, our growth in Malaysia will complement the capabilities of our Singapore hub.”

Fuad Sharuji, IVP’s general manager, said the potential deal will bolster the aerospace industry, supporting the Malaysian government’s aspirations for the sector. 

“The potential lease by SIAEC will be a significant milestone in the growth and progress of the MRO sector in Malaysia, and will serve as an avenue which would benefit the local MRO industry,” Fuad said in the statement. Fuad was previously Malaysia Airlines’ crisis director.

Datuk Arham Abdul Rahman, CEO of the Malaysian Investment Development Authority (MIDA) said the deal would help expand Malaysia’s aerospace ecosystem, which has been targeted as a new economic growth area in the National Investment Aspirations (NIA), focused on high-impact and technological investments. 

“Malaysia will undoubtedly continue to be an ideal investment hub for aerospace companies looking to expand their presence in Asean and beyond, owing to our strategic location, business-friendly policies, and skilled workforce capable of meeting the industry’s growing demand as we enter the endemic phase of Covid-19,” he said in the statement.

IVP currently operates from Sultan Abdul Aziz Shah Airport, Subang, providing MRO facilities for narrow-body and wide-body aircraft. IVP currently is redeveloping assets in complex A, including three aerospace hangars, component workshops, central and inflammable stores and other facilities, the filing said.

MIDA is the Malaysian government’s main investment promotion and development agency, under the Ministry of International Trade and Industry (MITI), to drive investments in the country’s manufacturing and service sectors. 

SIA Engineering provides aircraft maintenance, repair and overhaul (MRO) services in the Asia-Pacific region. The company provides line maintenance services at more than 25 airports across seven countries, and offers airframe and component services on commercial aircraft.

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