THE proposed Kulim International Airport (KXP) in Kedah will have the positive effect of attracting more investors to the northern region, Finance Minister Lim Guan Eng said today.

He also said there is no problem with having three airports in the north in the same region – two other airports in the region are the Langkawi International Airport and the Penang International Airport, which is about an hour’s drive from KXP.

Lim said the proposed Kulim airport was a good move if it was a private funding initiative, as intended by the government.

“If it is under private financing, I think it is something that is good. If there are private parties confident and ready to invest, it shows confidence is increasing towards the Malaysian government and towards Kedah,” he told reporters in the parliament lobby

News reports of the proposed KXP emerged in February when Kedah Menteri Besar Mukhriz Mahathir announced that a special purpose vehicle, KXP AirportCity Holdings Sdn Bhd, had been appointed to look into the building and development of the airport, which is expected to cost RM1.6 billion.

The issue was revived two days ago when Economic Affairs Minister Mohamed Azmin Ali announced the airport as one of several high-impact projects for Kedah under Putrajaya’s mid-term review of the 11th Malaysia Plan.

Responding to Penang Chief Minister Chow Kon Yeow’s concerns about how KXP would affect Penang’s competitiveness and call for a new feasibility study, Lim said a study will be done.

Lim said the Penang International Airport is waiting for its expansion project to commence once contractors are appointed.

The expansion will also be borne by a private finance initiative and Lim called for parties to invest in both the Penang and Kulim airports.

“If there are private parties ready to invest to in works on both airports, I don’t think this will be a problem as it is something good that can be a catalyst for economic growth and job creation,” he said. – March 21, 2019.