KUALA LUMPUR: Khazanah Nasional Bhd has dismissed the notion that it favours foreign firms over local companies for maintenance, repair and overhaul (MRO) leasing at Sultan Abdul Aziz Shah Airport, commonly known as Subang Airport.
The government sovereign wealth fund said it had reached out to local operators to encourage their participation in the request for proposal (RFP) process for hangar leasing at the airport.
However, the operators either declined or chose to continue their operations at the MRO hub in Sepang.
A Khazanah spokesperson said the local operators were approached by Impeccable Vintage Properties (IVP). IVP is a wholly-owned subsidiary of Khazanah.
"The assertion that Khazanah favoured foreign firms for hangar leasing due to higher rental offers is incorrect.
"It is important to note that IVP went above and beyond to support local bidders by facilitating potential partnerships with local and regional players, to ensure they had the resources needed to submit competitive bids.
"IVP's commitment to corporate governance standards ensures that all leasing, present and future, follow a transparent tender process," the spokesperson said in an email reply to Business Times.
Khazanah's response comes after a recent report indicated that many MRO companies had applied to lease hangars at Subang Airport but were not considered. These companies voiced their dissatisfaction with the authorities for allowing foreign MRO firms to continue operating at the airport despite the limited space.
The spokesperson said that plans are underway to expand Complex A at Subang Airport, including the addition of more hangars and MRO facilities.
Meanwhile, the spokesperson said that the decision to lease two hangars to Singapore Airlines' unit SIA Engineering Company (SIAEC) was part of a strategic initiative to strengthen Malaysia's aviation sector.
The tender process, managed transparently by IVP, focused on the bidders' strategic contributions to the MRO ecosystem.
The evaluation criteria for bidders included job creation, partnerships with local training institutions, investment, innovation, track record, market share and commercial terms, the spokesperson said.
"SIAEC's expansion in Subang is set to create over 1,000 jobs, significantly enhancing the local aviation industry.
"With its acquisition of a 75 per cent stake in SR Technics Malaysia in 2022, SIAEC is also ensuring technology transfer and skills enhancement, along with a commitment to invest over RM2.5 billion to strengthen Malaysia's position as a key regional aviation hub."
Khazanah also highlighted its ongoing initiatives to support local companies, including collaborations with aviation and educational institutions to strengthen technical and vocational education and training (TVET) programs.
These efforts aim to develop a skilled workforce for Malaysia's MRO sector.
Key initiatives include IVP signing a Letter of Intent with MARA Corporation in 2023 to build additional hangars on jointly owned land in Subang, supporting the latter's aerospace growth.
Additionally, IVP signed a lease agreement with Malaysia Aviation Group for Hangar 4 at Subang Airport, which can house up to five aircraft for MRO services.
This will allow MAB Engineering to expand its operations internationally.