SIA Engineering Company (SIAEC) S59 has announced that its wholly-owned subsidiary Base Maintenance Malaysia has entered into an 15-year agreement with Impeccable Vintage Properties (IVP) for the lease of two hangars at Sultan Abdul Aziz Shah Airport in Selangor, Malaysia, with an option to renew for a further term of 15 years.
SIAEC had previously signed a non-binding memorandum of understanding (MOU) with IVP, a wholly-owned subsidiary of Malaysia’s sovereign wealth fund Khazanah Nasional Berhad, on April 5, 2022 for the potential lease of the hangars.
The company says that its entry into this lease agreement is a significant milestone that establishes its third base maintenance hub in the Asia-Pacific region.
The addition of the two hangar facilities, each being able to accommodate two wide-body aircraft, will boost SIAEC’s airframe check capacity in providing comprehensive maintenance, repair and overhaul (MRO) of current and next-generation aircraft for SIAEC’s expanding portfolio of airline customers.
Chin Yau Seng, CEO of SIAEC, says: “We believe that our investment in the Subang hangars complements our component and line maintenance joint ventures in Malaysia, allowing us to augment our extensive MRO offerings to our customers globally. With the expansion of our MRO network, this will further solidify our position as a leading provider of MRO services.”
IVP’s CEO Fuad Sharuji adds: “With a proven track record in the MRO business, SIAEC’s establishment in Subang, Malaysia, will further bolster the thriving growth of Malaysia’s aerospace industry in support of the Government of Malaysia’s aspirations to position Malaysia as a leading aerospace hub in Southeast Asia and also in line with the Selangor Aerospace Action Plan 2020-2030, Malaysian Aerospace Industry Blueprint 2030 and 12th Malaysia Plan.”
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The move was also affirmed by Arham Abdul Rahman, CEO of Malaysian Investment Development Authority (MIDA), who said the formalisation of the lease agreement between SIAEC and IVP underscores a “robust commitment” from a prominent global aerospace MRO company like SIAEC to establish roots in Malaysia.
“It stands as a testament to the nation’s competitive edge in the aerospace ecosystem. SIAEC’s reputation in delivering comprehensive MRO solutions will contribute to bolstering Malaysia’s aerospace sector, establishing the nation as an ideal investment hub for aerospace companies seeking expansion within Asean and beyond,” says Rahman.
Shares in SIAEC closed 2 cents lower or 0.86% down at $2.32.
