: 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… BUSINESS CENTRE and Capital: 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 – 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 • : 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 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

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