Give details of PFI for Sime Darby/Air Asia airport


First, Sime Bank tak boleh tahan.

Then, Sime Darby turns down Bakun undersea cables project – cannot make money-lah.

Next, public outcry forces postponement of IJN privatisation.

Now, it’s a new low-cost carrier (LCC) airport in Negri Sembilan.

The government has given the green light for a RM1.6 billion low-cost carrier airport, about 20km away from the KLIA. It will be built by Sime Darby and Air Asia under a private finance initiative (PFI).

The rationale is that the KLIA cannot cope with the expected influx of LCC passengers. (Didn’t Mahathir say, when he tried to justify the KLIA, that it was being built to meet the country’s needs for the next 100 years? What about Subang – is it now fully utilised?)

The government must give us details of what kind of PFI is involved. Will any government or public money be indirectly used for this project?

And who will pay for government facilities required at the airport – customs, immigration, air traffic control, highways and other connenctions to the new airport?

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The positive comments I have read from the mainstream newspapers (the Star and NST surprise surprise!) were b….! First and foremost, there is no way that IATA will consider this airport as “an extension” to KLIA as Air Asia has put it. Clearly a new runway needs to be constructed and as such a new air traffic control tower and a new airport code. One should even wonder whether IATA will even approve such outrageous proposal to have 2 airports so close to each other for security reason!? Following from above, the argument that the passenger traffic could rival Singapore… Read more »

labu labi

Congratulations Malaysia. we’ve put another feat in the record books. Move away Petronas Twin Towers. Here comes the the only two airports in the world located within two runway length of each other, the KLABUIA Twin Airports !

Andrew I

K sounds like a government plant. Sorry, what are the justifications?

Killing off Changi? You wish. KLIA is now the feeder airport for Changi.

Subang airport is like Penang Komtar: excesses of our glorious past that no one wishes to acknowledge.


Narayan Perhaps you are missing the point. There is a perfectly valid reason why LCCs cannot use the KLIA main terminal. Also one of the reason why KLIA seems empty is due to its enormous size as compared to the cramped Changi and Sydney’s Kingsford. In terms of international airports, KLIA is certainly one of the busiest in the world (ahead of Sydney and I believe at No 13 in 2007). As mentioned in my earlier post, Subang is an idea that will not take off for numerous reasons. I am sure many of the people advocating the airport now… Read more »


I agree that the govt has to provide more details and also justification for the project. I think anyone even with half a brain will know that the LCCT terminal has long passed its capacity and a much bigger facility is needed. However as Sam Gopal has pointed it out eloquently, there could be cheaper and better long term options. I am not entirely convinced of the project though I dont necessarily think it will be a bad idea totally. Let me play the Devil’s Advocate here. In my view, the airline industry will undergo a sea change in the… Read more »

Andrew I

Narayan, and the list goes on. I remember a foreigner involved in the construction of KLIA telling me how they had to drain the swampland first before laying the foundations.

How much is swampland worth in the first place and how much was it sold to the government for?

Airport in the forest is too good a description for KLIA.

Sam Gopal

Excellent point raise by LBJ! Now, assuming this airport fails, due to several reasons, like trip from BKK to Nilai aiport is cheaper than the trip to from Airport to KL City/Kalng Valley. So, if the airport fails, what guarantee is there, that the TAXPAYERS’ money is not used to rescue Sime Darby? I think, Fernandez is playing some mind games with Malaysian Airports Bhd. MAB is going to lose mega millions if Air Asia moves out. Is he trying MAB to give Air Asia a better deal in LCCT? At the same time, MAB has spent hundreds of Million… Read more »


They said no govt money involved in Sime Darby Air Asia LCCT.

Who pay for air traffic control systems. radar system, air traffic controllers, fire brigade, security etc, etc. Who pay for the cost of running and maintaining these facilities. Sime Darby. I dont think so.

It is relatively inexpensive to build the physical infrastructures. But all these systems to run an airport and keep the plane flying safely. It is the taxpayers.

Beside, having a runway so closed to one another. Will this reduce air safety?


Another unrelated question.

I wonder if you can highlight if PR government exco members have declared their assets. If not why? Soomething to hide.

Malaysian Insider reported that the BN ministers have flatly refused and did even threaten to resign if Badawi insisted as he promised after march elections. Ref:

Thanks, I dont have a blog anymore so I rely or tumpang on others


Logic tells us the bunch of idiots are not working diligently. Ask the experts in EPU how do they carried out their evaluation each time a proposal was forwarded to their desk? OK ke ? OK lah. Kau tiem !That must the divine 3 master steps approach adopted by EPU.

All these projects that needs experts opinion in their respective field should not be overrule by politicians who knows nuts about transportation or aviation business. Professionals with expertise should not kow tow to politicians who are only possess low IQ but BIG mouth.

Sivin Kit

many thanks to Rakyat@work for calling me a handsome young lad here – feels good 🙂

Indeed it was a magical moment! And a pleasure to facilitate!


This in an OLD Story KLIA which was planned for the next 100 years (it is really beautiful) however did help the following persons 1) (A certain mnister’s) spouse – who ran the Airports Berhad (think about the bumi jobs it created ) 2) YTL – who build the train 3) KLIA Limosine 4) (A certain leader’s son) – whose company supplied Bangladesh workers and food parcel- 3000 workers – 3 years – do the math 5) the list goes on mate … could it be achived with addtions of 2 more run aways for subang and few more satellite… Read more »


Didn’t the Mamak also build Putrajaya for “future generations”? He must have been expecting a series of dumbo PMs to succeed him – people who couldn’t spend money as well as he could, so he had to use it all up for them. He could see further into the future than Alvin Toffler.

Sam Gopal

I thought Dr. M’s vision for KLIA would be the ability to expand all facilities to cater for 100 million passengers per year. There are 2 components to the whole equation of developing an Airport. (a) the no of runways that can be built. (b) Infrastructure for passenger handling. There is sufficient space in the plans to build at least another runway at KLIA/LCCT. There is also suffiecient space to put up another huge building or two for LCCT. In conclusion, why put up another airport even further away from KL, when KLIA facilities have yet to reach 50% of… Read more »


Just upgrade the Subang airport. No need for Negri Sembilan airport since KLIA is so nearby. Don’t tell me that Subang airport is not viable for budget airlines since Tony Fernandes wanted it so much. Federal goverment can save a lot of money from that. If they really want to build a new airport, consider Penang airport.

It seems that federal goverment wants to make Sime Darby profitable again after the slump in crude palm oil price. Good bail out!


Why build a new airport? Agreed that LCCT is now totally inadequate (of course it is – anyone could have predicted that!). But meantime, the main KLIA terminal gets quieter and quieter – what a waste of money! They should never have built the LCCT in the first place – use the main KLIA airport and capitalise on that investment.

Andrew I

Just what we need. Another airport.

If malls are a dime a dozen, it would seem we’re heading that way with the number of airports we have in this country.

It’s there for all to see how utilized our malls are. How many people can actually be seen clutching shopping bags?

Our national ability to waste knows no bounds.


haha…still want to build new airport eventhough we r having economic crisis? ha ha ha. very good management.

ambik je la duit tu….

biar rkyat merana


That is more like it …



LCCT is super overcrowded. The need for a new airport is imminent, unavoidable. Qestions are, what will the LCCT be used for after new airport in N9 constructed, will POS Malaysia or MAS Kargo take over and operate from LCCT?

And one more.. the construction of new LCCT.. MUST involve local construction workers.. everything must be local. that’s my concern..


Judging from the number of views of your previous article, I think the whole nation is interested in Sime Darby. The government should just enhance the current LCCT. No need another airport. We are not London lah, needing 5 airports. For such a small country, we just need 2 airports in the capital city, namely the KLIA and the LCCT. Don’t forget, with the small remuneration people receive and the low purchasing power of our currency globally, the majority of Malaysians cannot really fly to foreign countries for holidays. Don’t look so far, most Malaysians can’t even afford the toll… Read more »