KUCHING: The state government should take full advantage of Sarawak’s strategic location and tap into the growing aviation Maintenance, Repair and Overhaul (MRO) industry to be a preferred MRO hub in this region.
In suggesting this, Bandar Kuching MP Dr Kelvin Yii said this could be done in collaboration with Malaysia Airports Holdings Berhad (MAHB) and locally recognised global players.
He said instead of expressing an intention to set up a boutique airline that may not be sustainable and economically feasible, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg should use his influence on MAHB to extend the capacity in Kuching International Airport to be a preferred MRO hub in view of the increasing flights into this region especially with Indonesia moving its capital to Nusantara in Kalimantan.
“The potential of Kuching as a preferred MRO hub in the region was brought up in my meeting with AirAsia Berhad chief executive officer Riad Asmat and AirAsia Aviation group chief executive officer Bo Lingam at ReDHQ to respond to the urgent needs of MRO services in the region.
“Currently, AirAsia themselves are affected by the slow repair and maintenance of their aircraft causing them to be unable to fly at full capacity due to lack of MRO services in the region.
Due to our strategic location in Sarawak, we have the potential to be the preferred Southeast Asian MRO facility to handle the full life cycle of aviation assets. This has the potential to capture a significant part of the USD3.64 trillion or approximately RM15.08 trillion aftermarket services market share in Asia Pacific (APAC) in the next 20 years for Malaysia,” he said in a statement on Wednesday (June 15).
He said the state can invest in collaboration with specialised global players to set up a new facility that offers end-to-end aftermarket services including maintenance, repair and overhaul, aircraft teardown, aircraft material recycling and parts trading.
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.
This is approximately 17,500 aircraft deliveries that include narrow body, wide body, regional jets and freighters.
Aftermarket services market size for Asia Pacific is also expected to correspondingly capture the largest market share at 40 per cent of the total globally.
Dr Yii said the country’s aerospace industry has vast potential driven by the vibrant manufacturing and maintenance, repair, and overhaul segment.
“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 in Sarawak.
“With our strategic location, Sarawak should be looking into tapping into this industry to become the preferred MRO to cover this region in view of increasing flights as the capital of Indonesia shifts to Kalimantan,” he added.
