Alexa Rexroth

As business aviation in Malaysia expands along with the economy, continued growth of the industry there is contingent on the development of a hub to support operations, according to a recent survey by Frost &amp; Sullivan. That survey found the Sultan Abdul Aziz Shah Airport at Subang, Malaysia to be the preferred candidate selected by regional stakeholders to serve as a business aviation center. Development of a hub in Malaysia will be subject to regulatory, infrastructure, and operational issues requiring cooperation among transportation and investment authorities in the country.

 


"Regulatory issues related to registration, financing, and cabotage policy are major roadblocks,” said Nishant Dey Purkayastha, Frost &amp; Sullivan consultant. “For instance, only 30 percent of the fleet based out of&nbsp;Malaysia&nbsp;are registered in the Malaysian registry. The others are registered in other countries. This hampers the domestic charter industry as the internationally registered jets cannot be used for domestic operations.”

 


Areas in the region, including Singapore and Hong Kong, have been able to support business aviation operations through established maintenance centers, charter operators, and FBOs. While Subang Airport does feature companies such as ExecuJet, Hawker Pacific, and Redland Aviation, additional support for maintenance, training, and other logistical elements is lacking. “Malaysia&nbsp;will need to attract investments to fill up the gaps and complete the ecosystem," said Nishant.

 


According to Frost &amp; Sullivan, the Malaysian business aviation fleet numbered 51 jets in 2017 and has the potential to reach 124 jets by 2030. Subang sees around 3,200 business jet movements annually, but Frost &amp; Sullivan estimates that, with investment to create a hub, it could increase to 9,299 by 2030. Business aviation in Malaysia currently contributes 96 million Ringgit ($23.5 million USD) to the annual GDP, but&nbsp;the contribution number could grow to 342 million Ringgit ($83.8 million USD) with the development of a hub.

 


Cooperation among the Ministry of Transportation, Civil Aviation Authority of Malaysia, and the Malaysian Aviation Commission will be necessary to solve regulatory issues prohibiting hub development. Additionally, agencies will have to work together to attract suitable investors through the development of investment packages. While Thailand, the Philippines, and Indonesia could also potentially develop a business aviation hub, Nishant said, “Malaysia’s existing ecosystem is more developed and the industry players seem to hold a more favorable view of&nbsp;Malaysia. However, delays in taking steps in the right direction might enable to competitors to catch up."

Industry Report Cites Potential for Malaysian Bizav Hub

Increased demand for business aviation in Malaysia has driven interest in hub development.

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