MMAG banking on aviation arm to boost competitive edge in logistics industry

KUALA LUMPUR: MMAG Holdings Bhd (MMAG) is banking on its aviation arm, MMAG Aviation Consortium Sdn Bhd (MAC), to unlock its next growth phase and play a key role in unleashing Malaysia’s potential as a regional air cargo hub.

MMAG said this followed the investment of more than RM150 million to fuel the growth of its aviation business.

Its chairman, Tan Sri Mohd Khairul Adib Abd Rahman, said the group believes KLIA has the potential to become a central node in the global air cargo network, offering efficient, reliable, and competitive services that can surpass its regional counterparts.

“This is why we are making a significant investment of more than RM150 million in the expansion of our aviation arm at KLIA. We are determined to be a key player in transforming KLIA into a premier regional air cargo hub,” he said in a statement today.

Mohd Khairul said that from the group’s point of view, the investment in MAC will improve its competitive edge in the logistics sector, with aviation services complementing its strong presence in land freight.

“We expect to ride multiple market tailwinds here, including the diversification of global supply chains and foreign direct investment into ASEAN, the explosive growth of e-commerce, and regional demand for premium seafood,” he added.

MAC’s new state-of-the-art integrated logistics facilities will enhance KLIA’s capabilities, leveraging its strategic location and infrastructure.

“This facility features an expansive 302,400 sqft automated cargo terminal, marking the first of its kind in KLIA. It has the planned capacity to process the cargo of up to 72 passenger aircraft, with full operational capability set to be achieved in three phases,” MMAG said.

Located at Alibaba’s Cainiao Aeropolis Electronic World Trade Platform (eWTP) Hub at KLIA, with MAC as the anchor tenant, this terminal signifies a significant leap in enhancing the airport’s cargo handling efficiency and capacity.

The KLIA eWTP Hub is one of Alibaba’s six global logistics hubs.

Meanwhile, MMAG also announced the signing of a memorandum of collaboration (MOC) today with Menzies Aviation (SG) Pte Ltd (Menzies), part of Menzies Aviation Ltd, to provide comprehensive ground handling and aviation services.

It said that as part of the collaboration, Menzies will assist MMAG in securing slots and traffic rights at various airports, supporting the expansion of this business.

“MMAG expects this collaboration to contribute positively to the Group’s earnings by unlocking new revenue streams and business opportunities,” it said. – BK