Negotiations on MRO project still ongoing: Sabah Air

29 Mar 2023 • 11:47 AM MYT
Daily Express
Daily Express

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Kota Kinabalu: Aviation companies from the Middle East and Hong Kong have had talks with Sabah Air Aviation Sdn Bhd (SAASB) over the proposed Maintenance, Repair and Overhaul (MRO) facility for the maintenance of commercial aircraft in Sabah.

SAASB Chairman Kenny Chua said while both parties covered a lot of grounds, there are still some matters to be worked on before the proposed project can take off.

“The MRO is something big for Sabah, but there are still certain matters that we need to work on and negotiate with the relevant parties.

“One of the important matters is regarding land to build the facility. We need about five acres. We also need to put in place state-of-the-art technology and build more hangars,” he said in a statement, Tuesday.

Chua said this in support of Deputy Chief Minister cum Keningau Member of Parliament Datuk Seri Dr Jeffrey Kitingan’s call that part of the RM10.4 billion allocations to boost the country’s defence be spent on building the MRO in Sabah.

Jeffrey, who spoke in Parliament recently, said the MRO would contribute to Sabah’s socio-economic development.

The proposed facility, the first in East Malaysia when realised, is in line with the Sabah Government’s call to develop high-value and high-tech industry in Sabah.

“It will be a catalyst for the development of the aerospace industry in the State. In fact, our ambition is to make Sabah as the MRO hub in South East Asia,” said Chua, adding that this is a key element under the Sabah Government’s Sabah Maju Jaya development agenda.

This, he said, is due to Sabah’s strategic location in the region.

“Once we’re ready, commercial aircraft would no longer have to go to places like Kuala Lumpur, Singapore or Hong Kong for maintenance, repairs and overhaul services. Our strategic location will make Sabah a more favourable location for airline industry players,” he said, adding that one of the immediate spin-offs would be the creation of jobs for Sabahans.

The Malaysian Aerospace Industry Report 2019 stated that the country’s aerospace industry recorded RM16.2 billion in revenue that year and produced 27,500 highly-skilled workers.

“Certainly, we want to create this opportunity for our people in Sabah so that they can secure their future and earn a higher income.”

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