SIAEC subsidiary signs Lease Agreement for Subang Hangars

SIA Engineering Company’s (SIAEC’s) wholly owned subsidiary, Base Maintenance Malaysia, has signed a 15-year lease agreement for two Subang Hangars located in Sultan Aziz Shah Airport, Selangor, Malaysia. This signing marks a significant milestone for SIAEC in their efforts to expand its regional base maintenance network.

The agreement follows a non-binding Memorandum of Understanding signed earlier in April 2022 with Impeccable Vintage Properties (IVP), a subsidiary of Malaysia’s sovereign wealth fund Khazanah Nasional Berhad, regarding the potential lease of two Subang Hangers.

The lease agreement, which includes an option for an additional 15-year renewal, enables SIAEC to establish a third base maintenance hub in the Asia-Pacific region. The addition of the two hangars, each capable of accommodating two wide-body aircraft, will increase SIAEC’s airframe check capacity, allowing the company to provide comprehensive maintenance, repair, and overhaul (MRO) services to its expanding portfolio of airline customers.

Mr Chin Yau Seng, Chief Executive Officer of SIAEC, mentioned that this MRO network expansion will help solidify the company’s position as a leading MRO service provider. “We believe that our investment in the Subang hangars complements our component and line maintenance joint ventures in Malaysia, allowing us to augment our extensive MRO offerings to our customers globally,” said Mr Chin. 

Mr Fuad Sharuji, Chief Executive Officer of IVP, believes that SIAEC’s presence in Subang will further boost Malaysia’s aerospace industry’s thriving growth, supporting the government’s goal to position Malaysia as a leading aerospace hub in Southeast Asia.

Arham Abdul Rahman, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), affirmed the signing as “a
robust commitment from a prominent global aerospace MRO company like SIAEC to establish roots in Malaysia.