From Malaysia Airports Holdings Berhad
Malaysia Airports would like to clarify that several statements in the article Why spend RM300mil for Subang airport regeneration plan, govt asked are misrepresented as the final implementation plan is still being finalised by the relevant parties.
In relation to the proposed estimated expenditure of RM290 million by the government, the expenditure is designated for the development of public infrastructure, primarily public roads in order to mitigate existing and potential congestion.
Discussions on this matter are ongoing with the relevant government ministries and agencies.
Apart from the above, the investment required for the Subang airport regeneration plan (SARP) will be undertaken by Malaysia Airports, with a mechanism for an investment recovery model to be finalised with the government.
The proposed mechanism, that is, the airport development charge, is a widely practised mechanism in global airport developments such as in the Hong Kong International Airport, India’s Indira Gandhi International Airport, and Singapore’s Changi Airport.
The proposed charges are expected to be competitive to other airports, and considerably lower than taking a taxi or e-hailing transport to KL International Airport from the city centre, saving both time and money for passengers who opt to fly out of the premium city airport.
It is important to note that the SARP encapsulates more than only the development of a premium green city airport. It is a plan that will elevate the development of Malaysia’s business aviation and aerospace industries, creating over 8,000 new skilled and semi-skilled jobs, thus catalysing the economic development of the country.
In formulating this plan, Malaysia Airports had commissioned several feasibility studies by independent entities, namely the Netherlands Airport Consultants (NACO) and Deloitte Malaysia. Both parties have provided validation as well as recommendations towards implementation plans with a view to obtaining the desired outcomes, including mitigating the risks of any adverse impact to KLIA from flight cannibalisation.
Both these reports have been submitted together with our proposal to the transport ministry and the finance ministry.
As an organisation with strict adherence to governance processes, all developments under the SARP will go through the approved procurement processes. In the case of the construction and development of the airport terminal, this will be through an open tender which will be initiated once all matters are finalised.
Malaysia Airports Holdings Berhad is the country’s largest airport operator, managing 39 airports across the country as well as one international airport in Turkey.
The views expressed are those of the writer and do not necessarily reflect those of FMT.