A potential conflict of interest has forced the managing director of Sapura Resources Bhd to refrain from running the company's aviation businesses. In August, the New Straits Times reported that Sapura MD Shahriman Shamsudin was also a shareholder and director of rival entity Explorer Group Sdn Bhd.
Sapura's current aviation businesses include hangarage, aircraft handling, and aircraft management. It may expand into private jet MRO services. On August 15, the company filed a note with the Bursa Malaysia stock exchange saying it was aware of the potential conflict-of-interest issues. Sapura also said it had set up a new aviation management committee to take over Shamsudin's duties with all of his direct reports now going to the committee.
Last year, Sapura had intended to sell its aviation businesses to Royal Jet (ROJ, Abu Dhabi International). However, the conditional heads of agreement lapsed in June 2024, with Royal Jet making no offer. In the intervening period, Royal Jet signed a memorandum of understanding (MOU) with Explorer Group, which also primarily operates in non-aviation sectors but does have an MRO business that would, per the terms of its MOU, support Royal Jet's expansion into Southeast Asia from its regional Kuala Lumpur Subang Airport base.
"The board of directors is aware that there may be competition if Explorer Group Sdn Bhd together with Royal Jet LLC embarks into the hangarage, ground handling, aircraft management services, and private jet MRO business," the Sapura filing reads.
Sapura formerly operated in the MRO space, servicing commercial airlines. It exited that business in 2022, citing losses and a preference to focus on revenue generating business streams. However, it is likely to re-enter the MRO business, having signed an MOU in July 2024 with Subang MRO Sdn Bhd. That MOU concerned a joint venture on private jet MRO work.
