SUBANG: MBSB Bhd and The Weststar Group have entered into a landmark memorandum of understanding (MoU) that marks a significant step forward for Malaysia’s aviation and aerospace sector.
The collaboration builds on an RM1.3 billion syndicated Islamic financing facility in which MBSB Bank is a participant, and MBSB Investment Bank Bhd (MBSB IB) acted as joint lead arranger.
The financing facility will enable Weststar Aviation Services Sdn Bhd, a subsidiary of Weststar Group, to expand its operational capabilities by funding helicopter acquisitions, strengthening working capital, managing foreign exchange risks and broadening its service offerings to new markets.
By combining MBSB’s financing expertise with Weststar’s established leadership in aviation services, the partnership positions Malaysia to accelerate its ambition of becoming a leading regional aviation hub.
MBSB chairman Datuk Wan Kamaruzaman Wan Ahmad said the partnership reflected the group’s strategic commitment to high-impact, future-focused industries.
“Aerospace and aviation are no longer niche. They are growth multipliers that link Malaysia to global supply chains, energy corridors and future industries. By financing Weststar’s expansion, MBSB is investing in Malaysia’s competitiveness, positioning the country to lead in sectors that matter most for tomorrow’s economy,” he said at the MoU signing ceremony today.
Wan Kamaruzaman disclosed that MBSB has allocated RM5.7 billion for transportation, including aerospace, underscoring confidence in the sector’s long-term potential.
Weststar Group managing director Tan Sri Dr Syed Azman Syed Ibrahim said the financing marked a turning point for the group as it expands beyond its core offshore helicopter transportation services for oil and gas clients.
“This is the first time we are moving from offshore helicopter transportation to leasing helicopters to various agencies. With this investment, we have created an additional 600 jobs, particularly engineers and technicians,”
Syed Azman highlighted the challenge of a talent shortage in the country, particularly in helicopter engineering.
Unlike fixed-wing engineering, which has a steady pipeline of graduates, helicopter specialists remain scarce.
To address this, Weststar has been working with local universities by funding equipment, offering scholarships and guaranteeing employment for graduates.
“To train an aviation engineer, you cannot just read a book. You need practical training with proper equipment and simulators.
“We have provided grants, including RM1 million to Universiti Putra Malaysia, and we guarantee jobs upon graduation. This is how we are building the next generation of talent,” Syed Azman said.
Syed Azman disclosed plans for a major aviation training and maintenance hub in Malacca, centred at Batu Berendam Airport in partnership with Italy’s Leonardo Aircraft. The facility will host the latest simulator training centre, one of only three of its kind in the world, to cater to pilots across Asia.
“The cost of a simulator can exceed RM200 million, even more than the aircraft itself. Currently, pilots must queue for months to secure training slots in Europe. By developing this centre in Malacca, we can attract pilots from Japan, Korea, China, Europe and Southeast Asia, creating 1,000 high-paying jobs locally,” he said.
The centre would include maintenance, repair and overhaul operations for the region, reinforcing Malaysia’s status in the global aviation ecosystem.
For MBSB, the partnership is not only about financing one company’s growth, but also about aligning with national economic priorities.
“This is the first facility we have approved that exceeds RM1 billion, and it reflects Weststar’s strong track record,” said Wan Kamaruzaman. “We see this as part of our role in supporting Malaysia’s transition into a high-income economy through innovation, job creation and regional leadership.”
The collaboration is supported by five banks under a syndicated facility worth a total of RM4.8 billion, with MBSB providing RM1.3 billion.
MBSB IB also played a structuring role as joint lead arranger, signalling its capability to deliver complex, innovative financial solutions.
Both corporate leaders stressed that the partnership goes beyond aviation – it sets a framework for future collaborations in sectors such as defence, renewable energy and infrastructure, which are seen as critical to Malaysia’s long-term competitiveness.
The aviation industry in Asia is experiencing strong growth, driven by rising energy transition projects, increasing offshore demand and the strategic importance of regional connectivity.
With this alliance, Weststar aims to expand its reach both locally and globally, while MBSB positions itself as a key financial enabler of Malaysia’s future industries.
“Together with MBSB, we are confident of building sustainable value for our stakeholders, supporting national priorities, and positioning Weststar as a key driver of future growth industries,” Syed Azman said.