Malaysia targets bigger slice of US$60bil MRO market

SUBANG: Malaysia is positioning itself to capture a larger share of the growing maintenance, repair and overhaul (MRO) market in Asia-Pacific, with continued investments in aerospace infrastructure expected to strengthen the country's position as a regional hub.

Transport Minister Anthony Loke said the Asia-Pacific MRO market is projected to exceed US$60 billion by 2030, presenting significant opportunities for Malaysia's aerospace sector.

Malaysia is currently ranked third in the Asia-Pacific region and fourth globally for business aviation MRO activities, while the local aerospace industry generates about RM32.5 billion in annual revenue and supports more than 35,000 highly skilled jobs.

"Subang is part of our larger vision to turn Malaysia into an MRO hub for the aerospace industry. There is a lot of interest coming into Malaysia, especially in Subang," Loke said.

He said continued investments in aerospace infrastructure, alongside improvements in talent, technology and regulatory frameworks, would be crucial in helping Malaysia capture a larger share of the expanding regional market.

Against this backdrop, Mitsui Fudosan Group and Malaysia Airports Holdings Bhd (MAHB) have broken ground on the Subang MRO logistics complex, marking a new phase in the development of the aerospace ecosystem at Subang Airport.

Located within Subang Aerotech Park, the RM80 million facility will be developed by MFMA Industrial Sdn Bhd, a joint venture between Mitsui Fudosan (Asia) Malaysia Sdn Bhd and Malaysia Airports (Subang) Sdn Bhd.

The groundbreaking ceremony was witnessed by Loke; minister at the Japan Embassy Daisuke Nihei; Mitsui Fudosan managing director Masayoshi Saito; and MAHB managing director Datuk Mohd Izani Ghani.

Built on a 1.79-hectare site, the facility will offer about 254,420 square feet of gross floor area and feature multiple tenancy options to accommodate aviation, aerospace and logistics operators of varying sizes.

The project is expected to be completed in the third quarter of 2027, with operations scheduled to begin in the fourth quarter of the same year.

MAHB managing director Datuk Mohd Izani Ghani said about 50 per cent of the space within the logistics complex has already been negotiated with prospective tenants, primarily from the MRO sector.

He said the project broadens MAHB's real estate offerings within Subang Aerotech Park by introducing a ready-built, multi-tenant facility that complements its existing land sublease and build-to-suit options.

"The development caters to a wide spectrum of businesses, from established industry players requiring rapid market entry to SMEs seeking smaller footprints at competitive market rates," he said.

He added that the partnership with Mitsui Fudosan would help strengthen Subang's position as a centre for aerospace, business aviation and aviation support services while supporting long-term industry growth and investment attraction.

Meanwhile, Loke said that beyond infrastructure development, the government is pursuing regulatory and operational improvements to enhance Malaysia's competitiveness.

These include efforts to streamline cargo handling and customs clearance processes, as well as plans by the Civil Aviation Authority of Malaysia (CAAM) to introduce a regulatory framework for the low-altitude economy by the end of this year.

He said Malaysia's strategic location, established aviation ecosystem and growing aerospace cluster provide a strong foundation for future growth, adding that continued collaboration between government agencies, investors and industry players would be crucial in advancing the country's ambitions as a leading aerospace hub.