1. Yang Berbahagia Dato’ Mohd Sayuthi Bin Bakar, Mayor of Petaling Jaya
2. Tuan Zahirul Ishak, MIDA Transportation Technology Division Director
3. Mr Philip Mende, Chairman of the Board of Directors of Airfoil Services Sdn Bhd (ASSB)
4. Holger Sindemann, Board of Directors of Airfoil Services Sdn Bhd
5. Mr Wim Van Beers, CEO of Airfoil Services Sdn Bhd
6. Mrs Lee Chui Hiong, CFO of Airfoil Services Sdn Bhd
7. Dr. Guido Gravenkoetter, COO of Airfoil Services Sdn Bhd
8. Distinguished guests
Ladies and Gentlemen,
First of all I would like to express my gratitude to be invited to this momentous occasion, the ground-breaking ceremony of the facility extension project at Airfoil Services Sdn Bhd. I hope this ceremony will kick start a wonderful adventure for Airfoil Services SdnBhd in playing a big role to the aerospace and aircraft industry in Malaysia.
Speaking of the aircraft industry, I have recently concluded my working trip to Toulouse, France. There, we visited the famous Airbus Bizlab. Airbus BizLab is a global network of aerospace accelerators. Here, start-ups and Airbus “intrapreneurs” speed up the transformation of innovative ideas into valuable businesses. Since 2015,it has accelerated start-ups in worth of 19.5€ million
Ladies and Gentleman,
Aircraft parts and components export activities in Malaysia have increased significantly in the last four years with RM2.88 billion in 2014 to RM8.48 billion last year. Maintenance, Repair and Overhaul (MRO) sector recorded RM6.6 billion which representing 46% of last year national total revenue of RM14.4 billion for the aerospace industry. The government aims to generate up to RM16 billion this year from this industry. This can be achieved by having a rapid increase of foreign investors in Malaysia. Among some of the key advantages of choosing Malaysia as an investment destination is the improved protection of Intellectual Property Rights.
Furthermore, the political sphere of Malaysia is rather creating a very conducive and open environment for foreign investors. A smooth transition in the change of government last year, and a stable economic and political landscape have ensured continued confidence in Malaysia as a country to invest. We have almost 230 aerospace companies and some have grown significantly. This is something that we should be proud of considering how new we are in this industry compared to other main players such as United States and other European countries.
Selangor, specifically, has been the main hub for Malaysia’s aerospace and aviation industry as it is the base of more than 62% of the Malaysian aerospace players and we’re working hard on outlining strategies and the best methods to toughen and improve the aerospace ecosystem in the state. Selangor State Government has managed to come up with 30 plans under the Selangor Aerospace Action Plan with the aim to be the major hub for the aerospace industry in South-East Asia while targeting seven areas – infrastructure, regulations, market access, incentive, funding, education and training in strengthening the industry’s ecosystem in the state.
These action plans which drafted by Invest Selangor Bhd requires a collaboration and collective efforts from Invest Selangor themselves, state authorities and all relevant agencies to further promote Selangor as a strategic investment destination; in line with the Malaysian Aerospace Industry Blueprint 2030. Selangor as well plans to have a fully integrated logistics system for the aviation and aerospace industry, using the Internet of Things to put in place a value-added manufacturing system and provide a more conducive ecosystem for investors.
Ladies and Gentleman, Honourable Guests
I have been informed that ASSB has been established from 1991 and formerly based in Shah Alam and has moved to this current facility in 2007. Within 12 years in this existing facility, it is fascinating to know ASSB has tripled the serviceable output from 270,000 parts in 2007 to 650,000 parts per year last year and planned to have a plant ready to service 900,000 parts per year by 2020.
This new facility of ASSB will be ready to be equipped with high tech machineries which will gradually make ASSB ready to service up to 1.2 million parts per year; which almost doubling up its current capacity.The new technologies and machineries which will brought in together with expansion will undoubtedly increase the foreign investment in this state. The exchange of knowledge and introduction of these new technologies will be brought in greater value than the investment itself, which has vast potential in the country’s industrialisation and technological development programmes.
This rapid growth of ASSB brings not only great investment to state, but at the same time providing highly skilled job opportunities for its citizen. This extension is believe to be able to provide additional 200 headcounts in the next 3 years which brings the total headcounts to around 700. This definitely helps in increasing the current number of about 24,500 highly skilled workers who are currently serving the industry.
I am happy to note the development and on-going extensive engagement with Selangor Human Resource Development Centre (SHRDC). This engagement will not only benefiting Selangor state through new job creations but will also help local supply chain development.
ASSB has shared earlier to me that this fast track 2 years project still on-time as per schedule as what they have planned in last June 2019 and believe it’s still feasible to have the extended facility up and running by June 2020. They acknowledged the help and supports from this state local authorities, Invest Selangor, SHRDC, MIDA and all other relevant agencies which their representatives are here with us today to celebrate this milestone together.
I would like to congratulate ASSB management team, led by Mr Phillip Mende on this magnificent achievements of setting another milestone in your company’s history here in Malaysia.Before I end my speech, I would like to once again express my sincere appreciation to ASSB, especially to Mr Wim Van Beers, CEO of ASSB; for inviting me to officiate this ground-breaking ceremony of your facility extension project. I wish ASSB all the best!
YAB Tuan Amirudin Shari
Chief Minister of Selangor