IPOH: Private companies are welcome to invest in "less competitive" airports, says Anthony Loke.
The Transport Minister said discussions have been held with Malaysia Airport Holdings Berhad (MAHB) to consider a public-private partnership (PPP) model due to the country’s financial constraints.
A PPP is a contractual agreement between the private sector and public services that allows for greater private participation in the delivery of projects.
Loke said that some airports are less economical as they receive fewer flights, and MAHB can’t invest in upgrades until they receive funding from the government.
“That is why we need a new method, such as the PPP model where interested private companies can invest in these airports with terms and conditions,” he told reporters after attending the 22nd Perak DAP annual convention at a hotel here on Sunday (Oct 29).
"Investment in an airport has returns. First of all, every airport has a service charge for each passenger; if the airport is competitive, it can get many passengers," he said.
He then said that he had received requests from the Perak government to upgrade the Sultan Azlan Shah Airport.
“While the state government did suggest a new airport in Seri Iskandar, the process to build a new airport will take a long time and undergo a tedious process. We are focussing on the upgrades at the current airport in Ipoh instead," he said.
"We will look at the possibility of doing upgrades without affecting the structures. Discussions on the upgrades include airport runways and terminals," added Loke.
He said that some private companies have expressed an interest in investing in the airport.
"We will take a look at the partnership and consider all factors including making sure it won’t play a negative role for MAHB,” he added.
Loke then said that a request had been made to add more flights to Ipoh.
“I have met with Scoot and requested for more flights to be added to its Singapore - Ipoh route, especially for weekends and festive seasons," said Loke.
“We know that there are many Perakians in Simpang Pulai, Bercham and within the Kinta Valley area who work in Singapore and will return to Ipoh during festive seasons," he added.
He said that these added flights will help boost the country and the state economy sector,” he added.
On July 29, state infrastructure, energy, water and public transport committee chairman Datuk Seri Mohammad Nizar Jamaluddin said a 1,618ha plot of land near Felcra Nasaruddin, Seri Iskandar has been identified for a new international airport project.
On Sept 17, Perak Mentri Besar Datuk Seri Saarani Mohamad said the state is expecting more flights from countries in Asia as it prepares for visit Perak Year 2024.
