SHAH ALAM, Nov 20 — The state government, via Menteri Besar Selangor (Incorporated), is finalising details of its joint venture with Malaysia Airports Holdings Bhd (MAHB) to develop the Selangor Aviation Park (SAP) at KLIA Aeropolis.
State executive councillor for investment, trade, and mobility Ng Sze Han said this special purpose vehicle is crucial to ensure the SAP is developed in a well-planned, well-governed manner to boost investor confidence.
"Through this government-to-government collaboration, the Selangor government believes it will help position the SAP as a competitive international investment destination that can generate high economic spillover effects for the state," he said when winding up the 2026 Selangor Budget debate during the State Legislative Assembly session today.
Ng added that, as a project recognised under the Integrated Development Region in South Selangor (Idriss), the SAP is eligible to receive state government incentives.
They include the special premium scheme, the exemption of assessment tax for vacant land, a 50 per cent reduction in assessment tax for vacant buildings, and the exemption of business licence fees.
At this stage, the priority is to ensure high-quality economic spillover from the SAP, including the creation of high-paying jobs, technology transfer, strengthening local business capabilities, and integrating domestic vendors into global supply chains.
"Several engagement sessions have already been conducted by MBI with local aerospace companies such as Malaysia Aviation Group, Capital A, and Batik Air to identify local vendor ecosystems that can be leveraged through the SAP framework,” he said.
The state government is also currently reviewing its Selangor Aerospace Action Plan (SAAP) 2020-2030, a 10-year strategy to develop the state's aerospace industry, ensuring it remains relevant.
Ng said this initiative will be led by the Selangor Darul Ehsan Aerospace Industry Coordination Office (S-Daico).
"The SAAP, launched nearly five years ago as the state’s long-term aerospace blueprint, is currently undergoing a comprehensive review and update.
"This reassessment is to ensure that industry development strategies remain relevant and responsive to evolving ecosystem needs, including new technology and talent requirements, facility development, and foreign investment demands,” he said.
Concerning data centre development in Selangor, the councillor noted that one key condition is compliance with Power Usage Effectiveness (PUE) standards and water-use requirements.
"We will continue monitoring to ensure all new data centres comply with the environmental requirements set,” Ng said.
The state government is also working closely with its Federal counterpart to promote companies within Selangor’s Semiconductor IC Design Parks to major global players.
The Selangor Information Technology & Digital Economy Corporation (Sidec) has been proactively showcasing the capabilities of these local firms to multinational industry leaders and ensuring they are included in the country’s formal engagement and negotiation channels.
"On the issue of access to major industry players such as Intel, Nvidia, and AMD, I want to emphasise that Selangor does not make empty promises to the chip design ecosystem.
"Instead, Sidec has established a structured network of relationships through vendors, IP providers, and international technology partners to serve as an entry point into the global semiconductor supply chain,” he said.
