THE proposed Kulim airport will become a competitor to Penang International Airport (PIA) for cargo business in the northern region, said Penang Chief Minister Chow Kon Yeow.

“The use of Penang International Airport’s cargo facilities will decrease, and we will lose investors that may move to Kulim or other areas.

“It will reduce Penang’s foreign direct investment,” he told the Penang legislative assembly today when answering A. Kumaresan (Batu Uban-PH) during question time.

Kumaresan had asked about Kulim Airport’s impact to Penang. In his supplementary question, he also asked what plans Penang has to handle the negative impact of the new airport on Penang.

Chow said the Penang government had studied the reports by consultants KPMG Corporate Advisory and KLIA Consultancy on the Kulim Airport’s feasibility.

“Based on the two reports, the building of the Kulim Airport will bring negative effects to Penang International Airport and Penang.

“We are very concerned about efforts that are not in line with our development. We must protect Penang’s interests.

“Although two reports have been done by consultants on the Kulim Airport, we want a third study on what options we are looking at with the development.”

Chow said there could be four possible options.

“The first is expanding Penang International Airport’s capacity to the optimum. Maybe 16 million passenger arrivals a year is not enough, but we may need 20 to 30 million. A study will tell us what is the optimum capacity.

“The second is building a second international airport on reclaimed land in Batu Maung or Seberang Prai in Penang.”

Chow said the third option could be a “Kulim plus Penang” synergy, where the airport development would help both states.

“But Penang will still be affected because Kulim Airport will split the cargo and passenger businesses. Kulim Airport will also need enough traffic to survive.

“That will pull away some of our business. But the finance minister (former Penang chief minister Lim Guan Eng) has said we need not worry (about the Kulim Airport project).”

The fourth option is Penang’s greatest worry – to go with just Kulim and its airport.

“No need for Penang anymore when Kulim has its more advanced airport. Now that is our worry. Without a good transport network, our future will be in jeopardy,” he said.

To a supplementary question by Nor Hafizah Othman (Permatang Berangan-BN) on Penang risking loss of investors to the Kulim Hi-Tech Park due to the Kulim Airport project, Chow reiterated the importance of the third study on the development.

He also said it does not make sense for Kulim Airport to just provide cargo service.

“There is no airport that only deals with cargo. We are waiting for Kedah and the federal government to convince us that Kulim Airport won’t affect Penang.”

Earlier, Chow also told the House that the state is still in the process of hiring consultants to conduct a feasibility study on building the Northern Corridor International Airport.

“Work on the terms of reference is now under way. The consultant should be appointed in the last quarter of this year.

“We need the feasibility study so the right decision can be made on the matter,” he said. – May 2, 2019.