Another land swap: ‘Approval in principle’ for Butterworth RMAF base relocation


In the next few days, we will be taking a closer look at the controversial proposed relocation of the 1007-acre RMAF Base in Butterworth in a land swap deal which even Penang Umno was reportedly opposed to. 

(This was the same air force base that received global attention following the failure of the RMAF to follow through on the reported radar detection of the turnback of MH370. It is also the same air force base, where Major Zaidi Ahmad worked until he faced a court martial charge – hearing now in progress – for highlighting to the media the ineffectiveness of the ‘indelible ink’ used at the 2013 general election. The base is also the centre for a Five-Power Defence Agreement.)

Was there even an open tender? It says below that a new joint-venture company led by TSR Capital had sent a proposal to the federal government.

The following was an announcement made by TSR Capital Bhd:

Proposed Relocation and Reconstruction of A New Air Force Base for the Royal Malaysian Air Force Through Land Swap


Type Announcement
Subject OTHERS
Description Proposed Relocation and Reconstruction of A New Air Force Base for the Royal Malaysian Air Force Through Land Swap


The Board of Directors of TSR Capital Berhad wishes to announce that on 3 February 2014 the Company has received a letter dated on 29 January 2014 from the Ministry of Defence Malaysia (“MINDEF”) informing the approval-in-principle granted by the Federal Government of Malaysia (“Government”) for the proposed joint venture company (“JVC”) which details is described in Note 3, to enter into negotiations with the Government over terms for the proposed relocation and reconstruction of a new Air Force Base for the Royal Malaysian Air Force (“RMAF”) Butterworth, Penang through land swap (“Proposal”).

The Government’s approval-in-principle to the Proposal submitted by the JVC is subject to terms and conditions to be agreed between the Government and JVC (“the Parties”) and the execution of a formal agreement pertaining thereto.


The Proposal will be carried out by a joint venture company to be established which the equity proportion shall be as follows:



(i) TSR Capital Berhad


(ii) Lembaga Tabung Angkatan Tentera


(iii) Pembinaan Bukit Timah Sdn Bhd


(hereinafter refer as “JVC” or “LTAT-TSR-PBT JV”)

The JVC has proposed to the Government to undertake the following:

· To relocate and reconstruct the existing Air Force Base of RMAF Butterworth which is currently situated in Butterworth, Penang on a land to be identified.

· The JVC is to design, build and finance the development and construction of the New Air Force Base.

· The Government shall pay the JVC for the New Air Force Base through land swap at the current market value of the Government Lands. The Government Lands includes but not limited to the land measuring approximately 1,007 acres where the existing RMAF Butterworth is situated (“RMAFB Land”).

· Propose, plan and develop the existing RMAFB Land into an integrated mixed-used development project.


Lembaga Tabung Angkatan Tentera (“LTAT”), a statutory body enacted in 1972 by an Act of Parliament.

Pembinaan Bukit Timah Sdn Bhd (“PBT”) was incorporated in Malaysia on 2 October 1995 as a private limited company. PBT is chiefly engaged in construction and civil engineering works.


The RMAFB Land is located at Teluk Air Tawar, Seberang Perai, Butterworth, Penang and situated approximately 8km from Butterworth which is directly opposite Penang island. The size of the land is measuring approximately 1,007 acres.

Air Force Base of RMAF Butterworth is currently situated on the said land.


The Proposal which is presently being negotiated between the Parties was mooted by the JVC to the Government along the lines of the Public Private

Partnership (“PPP”) concept with the following benefits to the Parties:-

Benefits to the Government

The proposal enables the Government to reap the value of the Government Lands to obtain a new fully integrated and advance Air Force Base.

The land swap nature of the deal means that the Government will not have to fund the cost for the relocation and reconstruction of the Air Force Base. This will be paid by the current market value of the Government Lands.

The Government will also have the opportunity to participate in the redevelopment of the Government Lands through LTAT’s 30% equity interest in the JVC.

Benefits to the JVC

LTAT-TSR-PBT JV will reap the benefit by being in the capacity of master developer of the redevelopment of the Government Lands into a city of arts and leisure which promotes for eco-sustainable, culture and modern life-style.


Further details will be disclosed after definitive and conclusive terms have been agreed upon, and a formal agreement entered into by the Parties.

This announcement is dated 5 February 2014.

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P.s Before the Penang Airport was rebuild way back in the 70’s the RMAF Butterworth Airport was the airport serving the commercial airliners for Penang and Kedah-Perlis region. The runway was suitaed for the 707 of the day and is probably in excess of 7000 feet. With a little more work it could probably take in the A380 [around 11 000 feet]. New Sampah Philosophy For 1-Utopia-Malaysia ——————————————– Waste [ a must] and Want [anothermust] seems the sampah philosophy adopted by the present gomen even in the hardest of times [ experienced by people currently] . Some sampah statistik is… Read more »


TSR Capital seems everywhere I go. They are in PD
doing reclamation. They were the pfi guys in Penang
Prison and it appeared somewhere that the Chinese
also got to build the UIA Hospital in Nilai.

Well the shorty Chinese is well connected. You know the
adage :
Behind every successful .. towkay is a quiet
mat macai politik who goes dealing-whealing in gomen opis
for the …towkay!

Now, be clever: guess who the mat macai politik is?



Don Anamalai

Soon no more cheap air tickets?

Tony Fernandez succumbed to Barang Naik? or is it because MAS is not giving him competition?
maybe Tony thinks that household income is now RM5900 and thus no need for cheap air fare?


Tony’s QPR failed financial fair play ruling. He also lost money on F1 Canterham. So unlikely for bargain Air Asia tickets in the near future?


What is the real reason behind this relocation and why ? Who are the beneficiaries behind this exercise or is it another occasion for the schmucks in Umno to come up with the excuse to enrich themselves ? You only have it fixed when there is a need to and in this case is there something that needs to be fixed ?


It will make way for a ‘Sanctuary’ for the rich in Butterworth.


Dumno is dumb in ruling the country but they are super boleh in cari
lubang to enrich themselves and ruin the country…

Vote la beramai ramai sibodoh to have yourselves buried at the hands of dumno !!!


I did remember that the CAT said he will not approve the project if it is not in the people interest. You seem to be very forgetful or simply bodoh or dumb. Or is it that (is there collusion) with the parties concern? Siapa kah yang bodoh. ???


Perhaps the current location is not strategic enough as it has failed to detect MH370 flying over it? Or a good reason to move out to justify new purchase of hardware?

Pak Tim

For public safety, that air base should go where Mukriz intents to build his air port.


You are right on spot. Kedah got lots of cheap land. Developers & investor buy RMAF land at high prices and develop it and make substantial profits. They then buy cheap land in Kedah and built the air port and get substantial profit. Just like the tunnel and CAT`s way they did not have to pay for the RMAF land but contra it for the new RMAF base. Just like the CAT that swapped and give out 110 acres first where the lights of the tunnel is 8 years away


Swap Deals, A Contemporary (post 308) Way To Develop A Place Into 1st World Here’s the land for (anything goes) development deal: Swaping shiok-shiok gomen = provides land, doesn’t pay a cent, but get paid sky high Greedy tak cukup developer = pay sky high but maxi-profiteering from development SP labelled ‘Bodoh’ Rakyat = pay above-sky high for properties with blood, sweat & tears money, borrowed money, gambled money. Now, can also borrow to pay thro’ 2 generations (no more outdated 65 yr age limit for loans). If still not enough money, go cari makan outside of Malaysia to earn… Read more »


Umno folks not happy because they could not have high rise development around the new site (Ara Kuda) of the airbase?


Who ever it is, every one is learning fast from LGE land swap. With it the developers or investor earn both side. From swapping of the land for development and after that for construction of the new airport just like the tunnel. wow wow