KLIA Aeropolis:Gateway to Asia

5 October 2017

FIATA World Congress 2017

FIATA 2017

VISION – A GLOBAL LEADER IN CREATING AIRPORT CITIES

OVERSEAS AIRPORT

INVESTMENTS

IN

TURKEY INDIA

5INTERNATIONAL

AIRPORTS

16DOMESTIC

AIRPORTS

18STOLPORTS

MALAYSIAN OPERATIONS SERVING

110AIRLINES

950KTONNES CARGO*FYE2016: Malaysia Airports + ISG

118MILPASSENGERSin 2016* *Passengers + Malaysia + ISG in 2016;

Airlines = scheduled flights operating out of KUL + ISG

as of March 2016

1st AIRPORT OPERATOR

IN ASIA LISTED IN STOCK EXCHANGE

RM10.05 BILLIONMARKET CAPITALISATION

As at 30.12.2016

AIRPORT OPERATOR GROUPLARGEST IN ASIA

Combined with SGIA, Malaysia Airports group handles

~120 mppa

INTERNATIONAL

PASSENGER AIRPORT*

14thWORLD’S

BEST

in the World (>40mppa category)*

#TOP9AIRPORT SERVICE

QUALITY 2016

*Airports Council International (ACI)

Malaysia Airports Today

FIATA 2017

1990s

SUBANG

AIRPORT

~16 mil pax

TODAY

KLIA

~55 mil pax

2050s

KLIA

AEROPOLIS

~140 mil pax

Passenger Centric Growth

Leveraging on Strong Position to Capture

Opportunities

Enhancing Global Connectivity;

Integrating Supply Chains; and Serving

as an Engine of Growth

… Evolving to be a complete, synergistic aviation ecosystem

3 CORE CLUSTERSKLIA AEROPOLIS

ECOSYSTEM DEVELOPERINFRASTRUCTURE PROVIDER

Transformation – From A Pure Airport Play

RM339bil in GDP

cumulatively

create additional employment

~200,000 by Y2055

FIATA 2017

KLIA Aeropolis 3 Core Clusters – Aligned with National Agenda

LOGISTICS & TRADE

FACILITATION MASTERPLAN

(2015-2020)

Led by Ministry of Transport

TOURISM NKEA AND KL

TOURISM MASTER PLAN

2015 – 2025

Led by Ministry of Tourism

2ND NATIONAL AEROSPACE

INDUSTRY BLUEPRINT 2030

Led by Ministry of International

Trade and Industry, Malaysia

”The Preferred Logistics Gateway to Asia”

National Logistics Task Force (NLTF)Strategic Action Items

Create a multimodal transport and integrated logistics services

Facilitate eCommerce growth

KLIA Aeropolis Air Cargo & Logistics Key Pillars

Operational Excellence Network Connectivity Attractive Business Location

FIATA 2017

KLIA Aeropolis- recognized as a National Priority

Prime Minister Datuk Seri Najib Razak presents the 2016 Budget at parliament, October 23,2015

Announcement on 23 Oct 2015: PM Budget 2016 Speech

KUALA LUMPUR, Oct 23 2015 (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) is pleased that the KL International Airport Aeropolis (KLIA Aeropolis) is recognised as a key priority in the Budget 2016.

Managing Director Datuk Badlisham Ghazali said the airports operator had identified over 20 development projects covering 526.09 hectares at KLIA and several other airports.

"We estimate that both foreign and domestic direct investments will come up to RM7 billion over the next five years, commencing in 2016," he told Bernama. In tabling the 2016 budget today, Prime Minister Datuk Seri Najib Tun Razakhighlighted that the KLIA Aeropolis Development is one of the measures to boost domestic investment activity. The KLIA Aeropolis would be centred on three development cluster – aircargo and logistics, business and aviation parks, as well as meetings, incentives, conferences and exhibitions (MICE) and leisure.

Badlisham said these development clusters were perfectly aligned with the national agenda, namely, the National Logistics and Trade Facilitation Masterplan, by the Ministry of Transport and the National Aerospace Blueprint 2015-2030 anchored by the Ministry of International Trade and Industry. “ The clusters are also in sync with the various National Key Economic Area tourism initiatives, of which, the recently opened Mitsui Outlet Park KLIA was a key catalyst to the KLIA Aeropolis,” he added.—BERNAMEFBP FBP AS23/10/2015 21-43ST.

Total KLIA Land Area:

22,280 acre AEROPOLIS

9,015 acres

AIRPORT &AERONAUTICAL

13,265 acres

AIR CARGO

& LOGISTICS

AEROSPACE

& AVIATION

MICE

& LEISURE

LEGEND:

KLIA Aeropolis Masterplan – Up To 2050

MITSUI

OUTLET

PARK

FIATA 2017

Gross Area: ~1,290ac

Gross Area: ~450ac

Gross Area: ~1,140ac

Gross Area: ~520ac

Gross Area: ~440ac

Gross Area: ~555ac

Gross Area: ~430ac

Air Cargo & Logistics – Ambition

AERONAUTICAL SUPPORT ZONE 1 (ASZ1)

1

AERONAUTICAL SUPPORT ZONE 2 (ASZ2)

3

LOGISTICS PARK2

KLIA

KLIA 2

AIRPORT

CENTRAL

BUSINESS

PARK

AEROSPACE

PARK

AIRPORT &

AERONAUTICA

L RESERVE

SHORT TERM(within 5 YEARS)1

2MID TERM(3 -10 YEARS)

3LONG TERM(>10 YEARS)

Tier 1 - Cargo Terminal

Operators (CTO)

Tier 2 - Freight Forwarders

FREE COMMERCIAL ZONE

@ ASZ1

Tier 3 - Logistics &

warehousing, RDC,

Trucking Hub, Light

manufacturing

LOGISTICS PARK

INTEGRATOR HUB

@ ASZ2

Airline Forward Base

Express Operators/ IntegratorsAircraft Airframe MRO

FIATA 2017

Grow the Air Cargo Volume at KLIA (Currently @ c.650,000 tonnes)

>3.5 mil tonnesby 2055

Free Commercial Zone @ ASZ1 (within 5 years)1

FREE COMMERCIAL ZONE (FCZ) PHASED DEVELOPMENT

FIATA 2017

Future FCZ

90 acre Plot

Over 200 local &

international logistics

service providers

Logistics Park (3-10 years)

Global monobrand/

SME warehousing

Light

manufacturing Trucking hub

Regional

Distribution

Centres

Training

Centres,

Exhibition,

Offices

Artistic Impression of the KLIA Aeropolis Logistics Park

Developable Area Estimated GFA Development by phases

~390 ac ~13.6m sqft Ph1: 150ac (5Y)

LIGHT MANUFACTURING

BUSINESS CAMPUS

DISTRIBUTION CENTRES /

MONOBRANDS

2

FIATA 2017

Integrator Hub @ ASZ2 (> 10 years)3

Example of Benchmark Integrator hub

Integrator HubDevelopable Area Estimated GFA

~340 ac ~14.6m sqft

INTEGRATOR

HUB

Key Drivers:a) eCommerce growth driver of cross border tradeb) ASEAN Economic Community

FIATA 2017

KLIA Aeropolis- Attractive Business Location

READY LOGISTICS ECOSYSTEM

• World-Class Operators: MASKargo and

POS Aviation

• Top 4 worldwide integrators e.g DHL, Fedex

• 20 out of the Top 25 global freight forwarders

e.g. Schenker, Agility, Nippon

FCZ Authority to maintain and operate the free zone

Customs facilitation at KLIA- Ease of doing business- Seamless clearance operations

MA (Sepang)

BUSINESS FACILITATION SERVICES

READY STATE FREE COMMERCIAL

ZONE (FCZ)

FIATA 2017

DFTZ- A Game Changing Opportunity for Malaysia

YAB PM’s First Meeting With Jack Ma in Beijing

(4 November 2016)

“The Government will introduce the first Digital Free Zone in the world. It will merge physical and virtual zones, with additional online and digital services to facilitate international ecommerce and invigorate internet-based innovation.” Honourable Prime Minister Najib Razak

DFTZ Launch in Kuala Lumpur(22 March 2017)

4 MoU’s signed during launch:

Malaysia Airports- Cainiao Network

CIMB- Maybank- ANT Financial

MDEC- Catcha Group

MDEC- Alibaba Group

DFTZ- Vision and Objectives

Key Objectives

To enable export of

Malaysian SMEs

To position Malaysia as a

regional hub for

eCommerce logistics

DFTZ is the eCommerce window

to the world for SMEs

and the

preferred gateway of choice

for global brands and marketplaces into ASEAN

Vision

~1,500 Malaysian SMEs to be “onboarded” by end of 2017

Double growth rate of SME’s goods exports to US$38 Billion by 2025

Create 60,000 jobs by 2025

DFTZ - Process Improvement

FIATA 2017

Joint Chair

OBJECTIVE

To accelerate end-to-end

turnaround time for cargo in

DFTZ

Air

Land

Sea

PILOT

How is Malaysia achieving this?

PROCESS IMPROVEMENT TASKFORCE

Targeted Outcomes

Border Clearance6 hrs to 3 hrs

CTO Operations4 hrs to 90 min

1 2

MINISTRY OF INTERNATIONAL

TRADE AND INDUSTRY

DFTZ- Investments & Business Opportunities

SATELLITE

SERVICES(Kuala Lumpur)

E-SERVICES

PLATFORM(Virtual)

E-FULFILLMENT HUB(KLIA Aeropolis)

e-Marketplace & Market Expansion Companies

Platform companies

MonoBrands

Sports Household goods

Cosmetics Electrical & Electronics

FoodsFashions

Operational Supporting Services

Financial Services

Freight Forwarders

Other Government (foreign) links

Trade Assurance

Healthcare Autoparts

and many more..

Logistics Companies

Infrastructure & Supporting Services

Warehouse Fitting & Construction

E

C

O

S

Y

S

T

E

M

DFTZ- Development Phasing Plan at KLIA Aeropolis

DFTZ Pilot Phase (2017-2018)

Pos & Lazada (within 20 acres- part of former LCCT)• Operational start date- 2 Oct 2017• Infrastructure & FCZ expansion completed- 15 Sept 2017

FIATA 2017

Phase 2 (2022 onwards)

Future expansion Activities within Logistics Park will include:• Regional Distribution Centres for global monobrands eg.

Nike, Adidas, Sony etc• Multimodal Transportation Hub for logistics services by

Air, Rail, Sea and Road• Normal/bonded Warehouses- eg: for products by SMEs• Value added activities, light-manufacturing, & assembly

Phase 1 (2018 onwards)

Cainiao- MAHB• Expected to increase total cargo volume• Also includes increase in transhipments• Activities with E-fulfilment hub ie; Cargo Terminal,

Fulfilment Centre, Sorting Centre, Warehouse

Note:ASZ1 = Aeronautical Support Zone 1FCZ = Free Commercial Zone

DFTZ @KLIA to be Regional Multimodal Transhipment hub

- includes Land, Rail and Sea freight ie: KLIA as a hub beyond just Air freight

DFTZ @KLIA to be Global Fulfilment Centre

KLIA as the Regional Gateway for ASEAN and Oceania

Adoption of technology & Big Data Analytics (BDA)

- driving world class performance & service levels

Roadmap towards ambition as ASEAN’s Regional Hub

FIATA 2017

KLIA as first E-commerce hub outside of China & only regional hub within ASEAN, part of eWTP vision

1

2

3

4

5

Malaysia- ASEAN’s Gateway to Global Connectivity

SOUTHEAST ASIA

45

SHORT-MEDIUM HAUL

AFRICA

to Southeast Asia

1,250FlightsWeekly

10 flights/week

RANK AIRPORT COUNTRY

1 KUL Malaysia

2 CGK Indonesia

3 SIN Singapore

4 DEL India

5 LAX USA

1st in Top 25 Low-Cost Megahubs 9th in Top 50 International Megahubs

RANK AIRPORT COUNTRY

1 LHR UK

2 FRA Germany

3 AMS Netherlands

4 ORD USA

9 KUL Malaysia

762

Source:

Transhipments- Catalyst for Regional Multimodal Infrastructure and Connectivity

FIATA 2017

Planned High Speed Rail (HSR) presents cross-border opportunities

IN OPERATION: 2026

• Impetus for the National Transport Plan

• Aligned with National Logistics and Trade Facilitation Masterplan (NLTF), led by MOT

By Road

By Rail

CROSSBORDER

By Sea

•Connected via 5 major expressways*

• Sea to Air Transhipment via Bonded Trucking

•Connected to over 300km* of integrated rail network

•Development of High Speed Rail between KUL-SIN

*At maturity

THANK YOUFIATA 2017