Former youth and sports minister Syed Saddiq Syed Abdul Rahman said the proposed development of the airport by WCT Holdings Bhd would “kill” the national airline’s restructuring plan that has been put in place by its parent company, Malaysia Aviation Group.
Citing a letter by Khazanah Nasional dated May 11 to Prime Minister Muhyiddin Yassin, who is also the chairman of the sovereign wealth fund, Syed Saddiq said RM28 billion had been spent on the airline’s restructuring plan so far, with an additional allocation of RM3 billion.
Further, the Muar MP said the operator of Subang airport, Malaysia Airports Holdings Berhad (MAHB) would stand to lose RM11.9 billion in future revenue if the airport is no longer under its management.
MAHB currently operates a network 39 airports in the country including Subang airport.
If the proposed takeover by WCT Holdings Bhd is allowed, Subang airport risks losing its status as an aerospace hub as it presently is under MAHB, he added.
Syed Saddiq questioned why the government was hesitant to reject the proposal by WCT Holdings Bhd despite facing a barrage of criticisms from the airline workers’ union and other industry stakeholders.
“What is so good about this commercial development plan?”
He urged the government to focus on MAHB’s Subang airport regeneration plan, which he claimed would be more strategic and profitable.
“Subang airport provides over 4,000 jobs. With the regeneration plan, it could provide up to 19,000 direct jobs and over 70,000 indirect jobs.”
It was reported that businessman Desmond Lim, the largest shareholder of construction and property development company WCT Holdings Bhd, wanted to acquire and operate Subang Airport until 2092.It was reported that he plans to do so through his subsidiary, Subang Skypark Sdn Bhd.
The proposal was presented to the transport ministry, with an estimated RM3.7 billion in initial investment.
Of the sum, RM1.7 billion would be invested in the passenger terminal and executive jet terminal set to open in 2027, and the rest would be used over the next decade on the proposed airport city.
Meanwhile, in a separate statement, MAHB chairman Zambry Abdul Kadir urged the government to withdraw its plan to privatise and carve out the airport and allow it to be taken over by other parties.
The MAHB’s regeneration plan, which was announced in April, will see the airport’s disused Terminal 2 building torn down, along with major redevelopment work.
The government-linked company will invest RM300 million over the next five years for the purpose.
MAHB has said the regeneration plans will see the doubling of aviation operators in Subang airport to over 100, thereby creating job opportunities for 19,000 skilled workers in the aviation industry.