The Ministry of Transport (MoT) has said that the proposed redevelopment of Sultan Abdul Aziz Shah Airport in Subang, also known as Subang Airport, is still at the preliminary stage, with the final decision on the matter resting with the Cabinet.
In responding to reports of a possible takeover of the airport, MoT explained that it is a “common practice for the market to submit proposals to the government via an operating ministry to develop new or existing assets” – echoing the Malaysia Airports Holdings Bhd’s (MAHB) statement that such proposal has already occurred before, reported The Edge Markets.
“In the case of Subang Airport, being a significant facility and major urban hub for Klang Valley residents, great care and deliberation is needed for the airport’s long-term future in the broader Malaysian aviation landscape,” said the ministry as quoted by The Edge Markets.
MAHB has revealed that it has yet to receive details of Subang Skypark Sdn Bhd’s (SSSB) reported proposal to take over the Subang Airport.
“Neither has there been a discussion held with the government on the details,” it said.
MAHB has described the submission of such proposals as not uncommon and that its input will be sought by the government as part of the process. MAHB shared that it has, along with Malaysia Aviation Group, given their preliminary views on the matter.
The views of regulators like the Malaysian Aviation Commission and Civil Aviation Authority Malaysia should also be obtained before any decision will be made.
News portal The Vibes has reported that SSSB proposed to enter into a new concession with the government to develop Subang Airport into a city airport and operate it until 2092.
“SSSB is estimating a total of RM3.7 billion of initial investment without recourse to government funding. RM1.7 billion will be for the passenger terminal and executive jet terminal to open in 2027, while RM2 billion will be spent over the next 10 years in the airport city,” wrote the news portal as quoted by The Edge Markets.
SSSB operates Subang Airport’s SkyPark Terminal (formerly Terminal 3). It is a fully-owned subsidiary of construction and property development group WCT Holdings Bhd, whose biggest shareholder and chairman is business magnate Tan Sri Desmond Lim Siew Choon.
As of 5 March, Lim owns a 7.36% direct interest as well as an 18.15% indirect interest in WCT.