REGARDLESS of the funding model for the Kulim Airport (KXP), Penang remains wary of having another cargo airport so close to its airport, Chief Minister Chow Kon Yeow said today

He said the state maintains it has good reason to oppose the project, notwithstanding Finance Minister Lim Guan Eng’s remarks that KXP is a privately-funded initiative.

“It may be good for Kulim, but it may not be good for Penang,” Chow told reporters after the Penang legislative assembly adjourned sine die today.

Lim said during a debate in the state assembly on Monday that there is no reason to block the KXP project as it is funded by the private sector.

Chow said Lim was merely viewing the project from a financial standpoint.

“Maybe the Finance Ministry and the federal government have no objections. But it does not mean Penang has no concerns about the project,” he said.

Kedah Menteri Besar Mukhriz Mahathir have assured Penang there is no need to feel threatened by KXP, which was only for cargo.

“When Mukhriz came to see us on a courtesy visit at Komtar last year, he said KXP would be a cargo airport too. But reports suggest it would be more than cargo,” said Chow.

Chow said Penang does not object to the project and is instead showing “concern in the most sincere manner” over how KXP may affect business at the Penang International Airport, which also provides cargo services.

He said the two airports should ideally work in synergy and identify different markets to serve.

“But whether that is feasible or not, that has to be considered as well,” he said, adding that PIA’s cargo facilities have yet to reach capacity.

Yesterday, Chow told the House that KXP is PIA’s competitor for the cargo business as well as for investors. – May 3, 2019.