By Danial Dzulkifly
SHAH ALAM, Feb 24 — The highly anticipated Selangor Aero Park (SAP), a key initiative to boost the state’s aerospace sector, will be built within the Kuala Lumpur International Airport (KLIA) Aeropolis, said state executive councillor for investment, trade, and mobility Ng Sze Han.
The decision was made after the state government, in agreement with KLIA Aeropolis’ operator Malaysia Airports Holdings Berhad, opted to relocate the project from its original proposed site near Bukit Pelanduk at the Negeri Sembilan border.
“Both parties have agreed to finalise the proposed terms and conditions for the development before June 2025,” he said during his winding-up speech at the Selangor State Legislative Assembly session today.
SAP will include a range of aviation-related activities, including maintenance, repair, and overhaul; aircraft teardown, retrofitting, engine and aero manufacturing, training and research centres, and other commercial facilities.
Ng also pointed to Selangor’s strategic shift towards high-value industries including semiconductors and integrated circuit (IC) design to ensure the state remains a key economic contributor to the nation.
Responding to Hulu Kelang state assemblyman Datuk Seri Mohamed Azmin Ali’s additional question, he dismissed comparisons between Selangor and Penang in the semiconductor sector, emphasising that both states focus on different segments of the industry.
“I disagree slightly with the comparison between Selangor and Penang, particularly in the semiconductor sector. Penang’s strength lies in downstream activities such as packaging and testing, whereas Selangor focuses on IC design.
“So after the IC Design park became mature and we have our own IP (intellectual property), more factories dealing with advanced packaging will establish their base here, and subsequently our electrical and electronics exports will increase,” Ng said.
Azmin had earlier also questioned Selangor’s strategy to balance the services and manufacturing sectors, with the state Opposition leader warning that an overreliance on services could leave Selangor vulnerable to global economic headwinds.
In response, the councillor said it is natural for high-income economies to develop their services sector, citing China as an example, where services contribute over 50 per cent to the economy.
According to data from the Department of Statistics Malaysia last year, Selangor’s services and manufacturing sectors account for 32.6 per cent and 26.7 per cent, respectively, of its economic contribution to Malaysia.
Ng added that the state administration is formulating guidelines under the Speed Selangor policy to expedite planning approvals for industrial and commercial projects, which reduces processing time from 3.5 months to 14 days.
He highlighted Selangor’s economic resilience, stating that the state has the lowest unemployment rate in Malaysia at 1.7 per cent, the highest labour force participation rate at 76.4 per cent, and a 12 per cent decline in crime rates last year.
In the first nine months of 2024, Selangor also recorded RM66.8 billion in investments, creating 50,222 new jobs across 1,371 projects.
