Dr Yii (third right) in a meeting with Riad and Bo Lingam at ReDHQ to respond to urgent needs of MRO services in the region.
KUCHING (June 15): Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg should use his influence on Malaysia Airports Holdings Berhad (MAHB) to extend the capacity in Kuching International Airport (KIA) to be a preferred aviation Maintenance, Repair and Overhaul (MRO) hub, suggested Bandar Kuching MP Dr Kelvin Yii.
He said this would be a better option than setting up the state’s own boutique airline which may not be sustainable and economically feasible, compared to having a preferred MRO hub which is more viable.
“This is in view of increasing flights into this region, especially with the opening of Indonesia’s capital, Nusantara, in East Kalimantan.
“The Sarawak government should take full advantage of our strategic location and build a conducive ecosystem in collaboration with MAHB and locally recognised global players to tap into the growing aviation MRO industry,” he said in a statement today.
He said this following his meeting with Riad Asmat (AirAsia Berhad CEO) and AirAsia Aviation group CEO Bo Lingam at ReDHQ to respond to urgent needs of MRO services in the region.
Dr Yii added currently AirAsia themselves are affected by the slow repair and maintenance of their aircrafts, causing them unable to fly at full capacity due to lack of MRO services in the region.
“That is why, due to our strategic location in Sarawak, we have the potential to be the preferred Southeast Asia’s MRO facility to handle the full life cycle of aviation assets which has the potential to capture a significant part of the US$3.64 trillion (about RM15.08 trillion) aftermarket services market share in Asia Pacific (APAC) in the next 20 years for Malaysia,” he said.
He also suggested that the state can invest in collaboration with specialised global players to set up a new facility that offers end-to-end aftermarket services including MRO, aircraft teardown, aircraft material recycling and parts trading.
Dr Yii’s statement also mentioned head of KLIA Aeropolis of Malaysia Airports, Randhill Singh, as saying that based on the latest report by the world’s largest aerospace and aviation company, Boeing, APAC is expecting the highest aircraft deliveries at 41 per cent of total deliveries globally in the next 20 years.
“That makes out to be approximately 17,500 of aircraft deliveries that include narrow body, wide body, regional jets and freighters. The aftermarket services market size for APAC, on the other hand, is also expected to capture the largest market share at 40 per cent of the total globally.
“Moreover, when an aircraft retires after around 20-25 years in service, an estimated 85 per cent to 95 per cent of its weight can be recycled to ensure proper disposal and we can also take advantage of the many high-quality components it is made from.
“This multidisciplinary process that involves different aspects of economics of aircraft and improvement of environmental performance presents new opportunities here in Malaysia,” Randhill was quoted saying.
This, according to Dr Yii, shows the huge potential this industry can offer as well as the revenue it can bring to Sarawak.
“This will also have a bigger economic trickling down effects to Sarawak, providing high-skilled jobs to thousands of locals as well as trickle down to the local economy and boosting the growth of Kuching.
“The country’s aerospace industry has vast potential in Malaysia driven by the vibrant manufacturing and maintenance, repair and overhaul segment.
“With our strategic location, Sarawak should be looking into tapping into this industry as it could become the preferred MRO to cover this region in view of increasing flights as the capital of Indonesia shifts to Kalimantan,” he said.