Sabang: The MBSB BHD and Weststar Group have entered a historical memorandum (MOU) that takes a significant step forward for Malaysia’s aviation and aerospace sector.
This cooperation makes the RM1.3 billion syndicated Islamic Financing Facility in which MBSB bank is a participant, and MBSB Investment Bank BHD (MBSB IB) served as a joint lead arranger.
Finance facility will enable Weststar Aviation Services SDN BHD, a subsidiary of Weststar Group, by funding helicopter acquisitions, enabled to expand its operational capabilities, strengthen working capital, manage foreign exchange risks and make their service offerings in new markets.
The partnership with MBSB’s financing expertise with the established leadership of Weststar in aviation services is to accelerate Malaysia’s ambition to become a major regional aviation hub.
MBSB President Datuk Van Kamarujaman Van Ahmed said that the partnership reflected the group’s strategic commitment to the high-effects, future-centric industries.
“Aerospace and Aviation are no longer a niche. They are development multiplies that connect Malaysia with global supply chains, energy corridors and future industries. With the funding of the expansion of Weststar, MBSB is investing in the competitiveness of Malaysia, there is a position to lead the country to lead the country to lead the country.”
Van Kamaruzaman revealed that MBSB has allocated RM 5.7 billion for transportation, including aerospace, underlining confidence in the long -term capacity of the region.
Managing Director of Weststar Group Tan Shri Dr. Syed Azman Syed Ibrahim said that financing marked a significant turn for the group as it spreads beyond its main offshore helicopter transport services for oil and gas customers.
“This is the first time we are proceeding to lease helicopters to various agencies from offshore helicopter transport. With this investment, we have made additional 600 jobs, especially engineers and technicians,”
Syed Azmann highlighted the challenge of lack of a talent in the country, especially in helicopter engineering.
Unlike fixed-wing engineering, which has a stable pipeline of graduates, helicopter experts are rare.
To address this, Weststar is working with local universities by offering funding equipment, scholarships and guaranteeing employment for graduates.
“To train an aviation engineer, you can’t just read a book. You need practical training with appropriate equipment and simulators.
Syed Azman said, “We have provided grants including RM1 million to University son Malaysia, and we guarantee jobs on graduation. This is that we are creating the talent of the next generation.”
Syed Azmann revealed plans for a major aviation training and maintenance center at Malka, focused at Batu Berendum Airport in partnership with Italy’s Leonardo aircraft. This feature will host the latest simulator training center, which is only one in three of its kind in the world, to complete pilots across Asia.
“The cost of a simulator can be more than RM200 million, even more than the aircraft. Currently, pilots must queue for months to secure training slots in Europe. By developing this center in Malacca, we can draw pilots from Japan, Korea, China, Europe and South East Asia,” he said.
The global aviation ecosystem at the center will include maintenance, repair and overhaul operations for the region, strengthening the position of Malaysia.
For MBSB, the partnership is not only about the finance of a company’s growth, but also to align with national economic priorities.
Van Kamrujaman said, “This is the first feature we have approved that RM is more than 1 billion, and it reflects Weststar’s strong track record.” “We see it as part of its role in supporting Malaysia’s infection in a high income economy through innovation, employment generation and regional leadership.”
This cooperation has been supported by five banks under a total syndicated facility of RM4.8 billion, providing MBSB RM1.3 billion.
The MBSB IB also played a structured role in the form of a joint lead arranger, indicating its ability to give complex, innovative financial solutions.
Both corporate leaders insisted that the partnership is beyond the aviation-it determines a framework for future cooperation in areas such as defense, renewable energy and infrastructure, which is seen as important for Malaysia’s long-term competition.
The aviation industry in Asia is experiencing strong growth, operated by rising energy infection projects, increased demand and strategic importance of regional connectivity.
With this alliance, Weststar aims to expand its reach locally and globally, while MBSB itself holds itself as a major financial promoter of Malaysia’s future industries.
“With MBSB, we are convinced to create a permanent value for our stakeholders, support national priorities and create a permanent value for Weststar status as the leading driver of future development industries,” Syed Azmann said.
