Malaysia Airports Holdings Bhd (MAHB), the largest airports operator in the country, and Menteri Besar Selangor Inc, a state-owned investment agency, have announced the development of Selangor Aero Park (SAP). SAP a 600-acre industrial zone in Sepang dedicated to aerospace manufacturing and supply chain activities. The initiative, part of the KLIA Aeropolis development, supports Malaysia’s long-term ambition of positioning Kuala Lumpur International Airport (KLIA) as ASEAN’s leading air cargo hub.
With a projected gross development value of MYR 2.3 billion (USD 483 million), SAP is expected to become a major catalyst for high-value investment in the region’s aerospace and logistics sectors. The first phase will cover 200 acres, of which 50% has already been secured by GE Aerospace. The American aircraft engine supplier plans to establish a regional engine test cell and MRO (maintenance, repair and operations) facility at the site. The remaining 400 acres will be gradually developed in line with infrastructure readiness and investor interest. The initiative is closely aligned with Malaysia’s Aerospace Industry Blueprint 2030, which targets MYR 55.2 billion (USD 11.6 billion) in annual aerospace revenue and the creation of over 32,000 high-income jobs by the end of the decade.
The Malaysian Ministry of Transport highlighted KLIA’s strategic advantage in terms of scale and connectivity, supported by recent bilateral cooperation with China to strengthen air cargo links between KLIA and Zhengzhou. The Selangor state government is actively working to attract leading aerospace players including Boeing, Airbus, Embraer, and supply chain SMEs to SAP. Selangor currently accounts for 68% of Malaysia’s aerospace activity, with expectations to exceed 70% by 2030. MAHB views SAP as a flagship development under its 99-year lease agreement for the KLIA Aeropolis zone, unlocking long-term growth in aerospace innovation and logistics.
(Sources: The Edge Malaysia; New Straits Times)
