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Presentation Title SELANGOR: THE PREFERRED AEROSPACE HUB IN MALAYSIA INDEX Invest Selangor Selangor @ A Glance Selangor Investment Statistics Aerospace Industry in Selangor Selangor ‘3S’ Aerospace Belt INVEST SELANGOR Creating better value through service partners SERVICE PROVIDERS Invest Selangor Advisory Network Invest Selangor Talent Initiative Government Investment Agencies + +Solution Centre Supporting site selections Working closely with relevant Connecting investors with the right agencies government agencies Facilitating application approval Stakeholder engagement to improve service INVESTORS environment Provide information & advisory services Provide platforms to engage with potential business partners (eg. Selangor International Expo) SELANGOR @ A GLANCE Area: 7,957 km2 CLOSE PROXIMITY TO… KUALA LUMPUR BUSINESS CENTRE and Capital: Shah Alam PUTRAJAYA ADMINISTRATIVE CAPITAL Population: 6.14 million (2015) National Contribution: Urbanisation: 91.4% (2010) GDP*: RM 227 billion (2014) GDP Growth: 6.7% (2014) *At constant 2010 prices COMPETITIVE ADVANTAGES UNIVERSITIES & COLLEGES Largest Workforce (3.2 million) PRODUCING MORE THAN Well educated & multi-lingual 40,000 GRADUATES/ANNUM Literacy rate : 98.7% EXCELLENT CONNECTIVITY Focus on ICT & High- PEOPLE technology Cyberjaya – National ICT Capital of Malaysia There are 15 other cyber- centres in Selangor INNOVATION WELL ESTABLISHED LOCATION BUSINESSES & INDUSTRIES Strategic Location Less than 10 hours to 2/3 of the world’s population Free from natural disaster INVESTMENT INTO SELANGOR MANUFACTURING SECTOR: NO. OF PROJECTS IN SELANGOR: = 50 projects 2015 222 47% 2014 229 53% 2013 228 Total Direct Investment (2015) 2012 252 RM 7.96bn 2011 263 FDI: RM 3.78bn DDI: RM 4.18bn TREND (YR) 2011 2012 2013 2014 2015 11.7 9.8 Domestic Investment (RM bn) 8.7 7.3 7.9 7.0 Foreign Investment (RM bn) 6.2 4.5 4.2 Total Direct Investment (RM bn) 3.8 4.2 4.4 3.6 3.2 3.7 KEY Etc… INVESTORS: INVESTMENT INTO SELANGOR MANUFACTURING SECTOR (1987-2015): GERMANY UNITED KINGDOM SWEDEN SWITZERLAND RM 5.6 billion RM 2.3 billion RM 1.4 billion RM 1.1 billion NETHERLANDS NORWAY FRANCE BELGIUM RM 882 million RM 574 million RM 457 million RM 405 million ITALY DENMARK FINLAND AUSTRIA Etc… RM 259 million RM 217 million RM 201 million RM 134 million INVESTMENT INTO SELANGOR SERVICES SECTOR – GLOBAL ESTABLISHMENTS: Selangor ranked No. 2 in Malaysia in terms of investment for global establishments in 2015 Source: MIDA 2016 (RM 1.6 billion) AEROSPACE ECOSYSTEM IN SELANGOR Excellent Infrastructure Government Support NATIONAL AGENDAS 3 Major Airports Entry Point Projects (MRO, Aerospace Blueprint Federal Level Engineering Services, OEM) Aerospace Sites National Aerospace Industry Coordinating Office (NAICO) Key Players: • Sepang: KLIA Aeropolis • Subang: Subang Nexus • Serendah: Aerospace Hard State Level Metal Manufacturing Park Other Established Related Organisation • Selangor Aerospace Council INCENTIVE PACKAGE Malaysia Aerospace Industry Association (MAIA) AEROSPACE CLUSTER IN SELANGOR 62% of aerospace related companies in Malaysia are located in SELANGOR MRO, Servicing Standard Part Supplier, Trading Manufacturing Operator Education, Training, Simulation Engineering, Design Jigs, Tool Supplier Logistics Representative Special Processing Shop Assembly, Integrator Test & Evaluation 194 companies in Others Selangor Adopted from: MARA Aerospace & Technologies Sdn Bhd ‘3S’ AEROSPACE BELT IN SELANGOR Serendah – North Region: Aerospace Hard Metal Manufacturing Park UMW Aerospace Hard Metal Manufacturing Park Subang - Central Region Subang Nexus Worldwide I-zone Kapar Sepang – South Region KLIA Aeropolis SHAH ALAM Selangor Cyber Valley SHARE OF AEROSPACE ACTIVITIES IN SUBANG NEXUS MRO, Servicing 29% Standard Part Supplier, Trading 12% Operator 12% Education, Training, Simulation 7% Logistics 3% Manufacturing 3% Jigs, Tool Supplier 3% Representative 3% Special Processing Shop 2% Engineering, Design 2% No. of Companies: 69 Test & Evaluation 1% Assembly, Integrator 1% Note: Companies may have multiple operations Others 22% Adopted from: MARA Aerospace & Technologies Sdn Bhd SHARE OF AEROSPACE ACTIVITIES IN KLIA AEROPOLIS Logistics 26% Operator 22% MRO, Servicing 17% Education, Training, Simulation 9% Standard Part Supplier, Trading 4% Representative 4% Others 17% Note: Companies may have multiple No. of Companies: 21 operations Adopted from: MARA Aerospace & Technologies Sdn Bhd *NEW* Serendah: Aerospace Hard Metal Manufacturing Park UMW’s manufacturing plant (currently in construction) to produce fan cases for Rolls- Royce Plc’s aircraft engines RECENT AEROSPACE PROJECTS UPDATES IN SELANGOR 12 August 2015 - UMW Group signed a 25-year agreement with Rolls Royce Plc to manufacture and assemble fan cases for Rolls-Royce’s Trent 1000 aero engine. 29 October 2015 – Airbus officially launched its RM24mil customer service centre in Sepang, specialising in major aircraft engineering and repair design services. Source: The Star Online 2015 24 February 2016 – Airbus SAS has chosen local engineering solutions provider SDMK Sdn Bhd as one of its global suppliers of jigs for its composite repairs. Source: The Malaysian Reserve 2016 25 May 2016 - Lufthansa Technik AG and Malaysia Aviation Group Berhad have signed a Terms of Reference on a strategic partnership framework for a JV to establish a regional MRO facility. The facility is planned for 2017 and based at Malaysia Airlines' existing facilities at KLIA. Source: Lufthansa Technik AG 2016 Q&A SESSION For Enquiry Contact: Mr. Luqman Department: Pre-investment Department Email: [email protected] Telephone Number: +603-5510 2005 THANK YOU.
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