MRCB and Sunway win LRT extension contracts

The Star 17 Aug 2011

PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) and Sunway Holdings Bhd have won contracts worth RM1.33bil and RM569mil for the light rail transit extension of the Ampang line and Kelana Jaya line respectively from Syarikat Prasarana Negara Bhd (SPNB).


In separate statements yesterday, Sunway and MRCB said the contracts for the construction and completion of facilities (Package B) were awarded to their respective wholly-owned units - Sunway Construction Sdn Bhd and MRCB Engineering Sdn Bhd (MESB).

Sunway said it expected the contract to boost its construction order book to approximately RM2.5bil.

“Under Package B awarded to Sunway Construction, the facilities works will involve the construction and completion of facilities along a 8.1km route from Persiaran Kewajipan, Subang Jaya to Putra Heights.

The works include site clearance, earthworks, viaduct construction, roadworks, drainage works, traffic management, structural works and temporary works.

“The project is expected to contribute positively to the Sunway group's earnings for the financial year ending 2012 onwards. Works on the project is estimated to be completed in 29 months from the date of possession of the site,” it said.

In a separate development, Sunway Holdings also said it has been shortlisted by SPNB to bid for all the Mass Rapid Transit packages under the open category which includes elevated civil works, stations and depot.

MRCB told Bursa Malaysia yesterday that its contract from SPNB would involve the construction and completion of facilities works that include the fabrication and delivery of segmental box girders (Package B) for the Ampang line extension project. The construction period will be 30 months from the date of possession of site.

MRCB also said the SPNB had awarded MESB, the sub-contract for the fabrication and delivery of segmental box girders (Package B) for the Kelana Jaya line extension project. MESB is a nominated sub-contractor to Sunway Construction for the sub-contract worth RM67.2mil.

The construction period for the works is 20 months.

11 named to oversee KLIFD project

The Star 18 Aug 2011

PETALING JAYA: The RM26bil Kuala Lumpur International Financial District (KLIFD) will be overseen by 11 local and foreign consultants appointed by 1Malaysia Development Bhd (1MBD) to push forth the development of the project.

1MDB said in a statement yesterday that the consulting companies were appointed based on their experience and track record in their fields such as sustainability, infrastructure, engineering, landscape planning and traffic management.

In March, 1MDB carried out a pre-qualification and request for proposal process through its subsidiary 1MDB Real Estate Sdn Bhd.

Among the selected local companies are traffic management consultant Perunding Trafik Klasik Sdn Bhd, quantity surveyorPerunding NFL Sdn Bhd, landscape architectAkitek Jururancang Malaysian Sdn Bhd and land surveyors Jurukur Perpaduan Sdn Bhdand Jurukur ESA Sdn Bhd.

The infrastructure engineering consultants are EDP Consulting Group Sdn Bhd and Buro Happold Consulting Engineers, a UK and US consultant which also acts as KLIFD's sustainability consultant.

Others include security and risk engineers ARUP Jururunding Sdn Bhd(from Malaysia) and ARUP Group International, a Hong Kong-based company. A consultant from Qatar, KEO International Consultants, was selected as programme management adviser.

The appointments are in addition to the two master planners named recently, Akitek Jururancang Malaysia Sdn Bhd and Machado Silvetti & Associates, selected from an international design competition.

1MDB Real Estate chief operating officer Datuk Azmar Talib said that the appointments were based on global practices and that the committee was “thorough and transparent in the selection process”.

“Given the scale of the development and its impact on national growth, we seek not just capability and capacity but people who also share our vision for a sustainable and holistic KLIFD and our passion to deliver a Greater Kuala Lumpur,” he was quoted.

1MDB owns the 30.35ha on which the KLIFD will be developed. As one of the entry-point projects under the Economic Transformation Programme, the KLIFD aims to attract financial institutions and global companies to complement other financial centres in the region.

The entire financial district is slated to be completed in two decades, with its first phase operational by 2016. Azmar has expressed hopes to integrate the development of the KLIFD with the country's mass rapid transit system which is slated to commence operations in the same year.

Azmar added that the selection of consultants for Bandar Malaysia, a KLIFD twin development in Sungai Besi will also undergo the same rigorous process.

Prasarana shortlists 28 for MRT works

KUALA LUMPUR: Syarikat Prasarana Negara Bhd, the project owner of Malaysia's biggest rail infrastructure project, My Rapid Transit (MRT), has shortlisted 28 individual and joint-venture companies that can bid for various elevated civil works, stations and depot packages under the multi-billion ringgit project.

In a statement yesterday, Prasarana group managing director Shahril Mokhtar said these tenders would be called in stages beginning from next month until December 2012.

"Tender for the first stage, which involves two civil works packages, will be issued early next month," Shahril said.

The two packages are a 5.4km stretch from Taman Bukit Ria to Plaza Phoenix in Cheras and the other covering a 5.2km stretch from Taman Suntex to Bandar Tun Hussein Onn.
There are 18 packages with eight packages under elevated civil works, another eight for elevated station works and two for depot.

These packages are divided into two categories - the open category and the Bumiputera category.

Applicants were evaluated based on their financial capabilities, track record, experiences, existing management staff and key personnel, the average annual construction turnover in the last five years, their existing plant and equipment as well as their existing quality, safety, health and environment practices.

For joint-venture submissions, technical and financial evaluations were carried out on the individual companies with the total score of their technical and financial points combined based on their equity percentage.

The pre-qualification exercise attracted strong response with 286 companies purchasing the tender document which was opened through two public advertisements by Prasarana with a total of 195 companies submitting their appli-cations.

Hailed as the country's biggest infrastructure project as part of the Greater Klang Valley Master Plan, the MRT would provide the backbone service to the existing public transportation system and would be integrated with the existing LRT, KL Monorail and KTM services. 

To cut through the city centre from Sungai Buloh to Kajang, the new MRT will run for some 51km including 9.5km through underground tunnels and will be serviced by 27 elevated stations and seven stations underground; and depots at Sungai Buloh and Kajang. 

"Tenders for the other packages will be announced in due course," added Shahril.

Study on KL-S'pore high-speed rail

KUALA LUMPUR: A pre-feasibility study for Kuala Lumpur-Singapore high-speed rail (HSR) system will be concluded in a few weeks, Performance Management and Delivery Unit (Pemandu) director Ahmad Suhaili said.

“The findings of this study will allow the Government to decide on where to place key stations.

“However, a more detailed study would have to follow to further refine the project's plan,” he said at a briefing on half-year results for six focus areas in the Government Transformation Programme.

Ahmad heads both the Urban Public Transport national key results area (NKRA) and Greater Kuala Lumpur and Klang Valley national key economic area (NKEA).

It was also revealed that the My Rapid Transit (MRT) system will have independent monitors to ensure proper delivery and governance of the RM20bil intra-city rail project.

Pemandu director for Corruption NKRA Ravindran Devagunam said the monitoring would be from “cradle to the grave”, adding that the Malaysian Anti-Corruption Commission and the Auditor-General (AG) would be the monitors from the public sector.

He said this would be the first time the AG was involved in the oversight mechanism at the beginning of a project rather than at the end, which was the usual practice.

Pemandu is also looking at enlisting professional bodies, engineers and non-governmental organisations as independent monitors for the MRT.

In March, the Land Public Transport Commission, which oversees the implementation of the MRT and HSR, announced the appointment of consulting firm McKinsey as the Government's value management study consultant to scrutinise the plans and obtain optimum cost efficiency for the MRT.

The MRT and HSR are both large-scale projects under the Economic Transformation Programme.

The HSR, estimated to cost RM8bil to RM14bil, will stretch about 400km and reduce travelling time between KL and Singapore to 90 minutes from the current seven hours.

However, analysts have said that a key challenge facing the Government in these projects was coming up with the required funding.

In the MRT's case, it was reported that the Government will create a special-purpose vehicle to raise bonds to finance the project.

Analysts said bonds issued by the Government would be deemed as part of government debt by some rating agencies.

“The more bonds issued by the Government, the higher our debt-to-gross domestic product ratio, which is an indicator used by rating agencies to determine a country's sovereign rating,” a fixed-income analyst said.

On the HSR, analysts said its cost would put a drag on the Government's finances, suggesting instead that enhancing KTM Bhd's existing services and infrastructure might be a better option. - The Star 5 Aug 2011

Penang’s third link in the pipeline

By ANDREA FILMER

The Star 30 April 2011

GEORGE TOWN: With the Second Penang bridge project almost 50% complete, Penang has turned its sights towards a proposed third link a Penang-Butterworth sea tunnel.

The 6.5km tunnel, proposed by the Beijing Urban Construction Group (BUCG), will connect Gurney Drive on Penang island and Bagan Ajam in North Seberang Prai.

Chief Minister Lim Guan Eng said the project stemmed from a memorandum of understanding (MoU) between BUCG and the state government signed in Putrajaya on Thursday.

It was one of eight agreements signed between Malaysia and China in the presence of Prime Minister Datuk Seri Najib Tun Razak and Chinese premier Wen Jiabao.

Lim said BUCG is an established (state-owned) company in China whose projects included the Bird's Nest Olympic stadium in Beijing.

“To get the attention of such a company is a vote of confidence from China on the re-emergence of Penang as a premier location of choice for investors,” he said after the opening of the state assembly sitting byYang di-Pertua Negeri Tun Abdul Rahman Abbas here yesterday.

Central Seberang Prai district is currently connected to the island via the Penang Bridge; while the South Seberang Prai district will be connected to Batu Maung on the island by the 24km second link due for completion in November 2013.

“The state is intent on pursuing this (third link) as it will place Penang on a strong and firm footing for the next 20 years,” he said.

Lim added the proposed tunnel would bring economic development to North Seberang Prai, Kepala Batas and Tasek Gelugor along with cutting down traffic congestion in the state.

He said the proposed tunnel would be connected to a previously announced 4.2km road linking Gurney Drive to the Tun Dr Lim Chong Eu Expressway.

The proposed bypass, along with another 4.6km tunnel road linking Air Itam to the same expressway, has been estimated to cost around RM4bil.

Ria Pertiwi to develop living facilities for UUM

28 Apr 2011

Ria Pertiwi Sdn Bhd today signed a memorandum of understanding with Uniutama Holdings Sdn Bhd to develop accommodation facilities for Universiti Utara Malaysia (UUM)'s international students.

The proposed development, estimated to cost about RM100 million, is planned over a 13.35 hectare site near UUM's main campus in Sintok, Kedah.

Ria Pertiwi Executive Chairman Datuk Ahmad Faizal Datuk Wira Jaafar said the project was expected to commence construction in July and be completed within 24 months.

"A two acre park, which will be planted with local fruits, will become a unique feature at the facility," he said after the signing ceremony today.

The development will include nine blocks of furnished apartment type hostels for 2,000 students, a multi-purpose hall, cafeteria, surau, student centre and sports facilities.

Under the agreement, Uniutama, which has a 25-year concession to design, build, operate and lease the project, will transfer the concession rights to Ria Pertiwi to build the facility, upon the  approval of UUM. - Bernama


(Quick check: Cost per student is RM50k. If break-even period is 10 years, rental is RM5k/yr i.e. RM500 per month per student, assuming 10 months occupancy in a year. If apartment is designed for 3 students, rental per apartment is RM1,500 per month)

Additional criteria for MRT project?

Excerpts from an article in The Malaysian Insider on additional criteria for MRT project: 

- start of excerpt - ...said that Prasarana had on March 30 this year come out with additional criteria for the project, ...The criteria, according to ... were:

• contractors taking part in the project tender are forbidden from forming joint ventures or consortium;

• companies of contractors are forbidden from forming any joint ventures with foreign companies in the tender of the project;

•The formation of a consortium of two or more companies is strictly forbidden; -end of excerpt-

KL-Kuala Selangor highway to open soon

The Star

Friday April 22, 2011

PETALING JAYA: The KL-Kuala Selangor Expressway (LATAR Expressway) project, which links Templer’s Park, Gombak, with Ijok, Kuala Selangor, is almost completed, possibly to be opened by the middle of this year.

The 33km dual carriageway expressway will be the alternative link road to the present Jalan Sungai Buloh–Kuala Selangor (Federal Road 54) route.

Concessionaire KL-Kuala Selangor Expressway Bhd (KLSEB) said in a statement yesterday that the LATAR Expressway features four interchanges and three toll plazas on each side of the expressway.

It links areas such as Kuala Selangor, Assam Jawa, Ijok, Batang Berjuntai, Kota Puteri, Puncak Alam, Shah Alam, Bukit Jelutong, Sungai Buloh, Kundang, Rawang and Selayang.

A non-congested drive on the expressway is said to take 18 minutes from end-to-end.

Construction of the LATAR Expressway began in October 2008, with the concession awarded to KLSEB for a period of 40 years.

The turnkey contractor is Mudajaya Holdings Bhd, which was awarded a contract valued at RM958mil for the expressway.

Hochtief management exodus as ACS tightens grip

Copyright AFP,2011 | Apr 19, 2011

German construction group Hochtief said Monday its finance chief was following the chief executive out of the door as Spain's ACS tightens its grip in a hostile takeover.

Burkhard Lohr will leave the company after almost 20 years in October, Hochtief said in a statement. Last week it said chief executive Herbert Luetkestratkoetter would step down in May.

Luetkestratkoetter opposed a hostile takeover bid by Spanish giant ACS, owned by Spanish billionaire and Real Madrid president Florentino Perez, to create Europe's biggest construction group.

Despite Luetkestratkoetter's wish for Hochtief to remain independent, ACS has built up its stake to almost 40 percent and aims to own more than 50 percent.

Last week Hochtief, which generates only around 10 percent of its business in Germany, slashed its 2011 forecasts after a profit warning from Australian unit Leighton.

Concessionaire: Second bridge will be completed by November 2013

By JOSEPHINE JALLEH | Apr 19, 2011
josephine@thestar.com.my

The second Penang Bridge is 47.55% completed as of March.

The project is however 2.85% behind the 50.4% scheduled progress.

State Public Works, Utilities and Transportation Committee chairman Lim Hock Seng said concession holder Jambatan Kedua Sdn Bhd (JKSB) had assured the state government that it would catch up with the scheduled completion of the 24km bridge slated for November 2013.

Construction works on the bridge started in late November 2008.

Lim also said over 700 workers were working round the clock at the United Engineers Malaysia (UEM) segmental box girder plant in Batu Kawan to produce 8,092 units of segmental box girders for the bridge.

“They have already moulded 987 units. A total of 28 units are already fixed on-site out in the sea with 14 of them on each side of the bridge.

“Besides that, piling works are 84% completed while the building of pile caps and columns are 55% and 45% completed respectively,” he said during a visit to the plant yesterday.

Lim added that the two toll plaza buildings, to be located in Batu Kawan, were still on the design board.

“We will also implement a green concept for the package to be environmental friendly,” he added. Buildcast Sdn Bhd (a wholly-owned subsidiary of UEM Builders Bhd) production manager Anuar Abdul said there were 22 moulds and three factories at the segment casting plant. “Between 12 and 14 pieces of segmental box girders are produced in a day and the process is a tedious one,” he said.

The RM4.5bil second bridge project comprises three main packages — 

• construction of the sub-structure by CHEC Construction Sdn Bhd (the local arm of China Harbour Engineering Co Ltd), 
• casting of the segmental box girder by UEM Builders Bhd, and 
• construction of the Batu Kawan and Batu Maung exit and entry points and trumpet interchange by Cergas Murni, IJM Construction and HRA Teguh.

The bridge, which will link Batu Kawan in Seberang Prai to Batu Maung on Penang island, is poised to be the longest bridge in the country and Southeast Asia.

Raffles Campus for Iskandar

By Chuah Bee Kim

BTines

20 April 2011

JOHOR BARU: Johor will have a state-of-the-art international school, with a first batch of 2,000 students when it is completed in the third quarter of 2013.

The aim of the international school, a joint venture between Raffles Campus Pte Ltd and property developer Seri Alam Properties Sdn Bhd, is to see a gradual drop in the number of parents in the southern city sending their children to study in Singapore. Seri Alam is a wholly-owned subsidiary of United Malayan Land Bhd (UMLand).

"It is pitiful to see children having to wake up as early as 4am to go across the Causeway to study," said Raffles Campus chairman and chief executive officer Ng Boon Yew at the signing of the memorandum of understanding (MOU) with UMLand group chief executive officer Pee Tong Lim at the Galleria Seri Alam in Bandar Seri Alam here on Monday.

The MOU signing was witnessed by the consul-general of Singapore Lim Hong Huai and Johor State Investment Centre (JSIC) general manager Mohamed Basir Mohamed Sali.

Ng said when he was approached about the project by the JSIC about six months ago, he was immediately interested considering its proposed site is within the Iskandar Malaysia development corridor.

"We (Raffles Campus) were impressed with Johor's foreign direct investment (FDI) achievement which we were told, raked in 20 per cent of the RM150 billion achieved by Malaysia over the past five years.

"With over RM30 billion, Johor's FDI surpasses that of Selangor and Penang for that period. In 2010 alone, Johor's FDI stood at RM3 billion," Ng said.

He added the RM35 million development will spread over six hectares with a built-up space of 180,000 sq ft. It will span into two to three phases over the next four to five years.

The school will offer international curriculum, infused with Singapore's school curriculum.

Ng said news of a RM1.2 billion new rail system from Woodlands in Singapore to the JB Sentral was another contributing factor to the development of the school.

MRT proposed for Iskandar Malaysia

Wednesday April 13, 2011

The Star

KUALA LUMPUR: A plan to build a 500km mass rapid transit (MRT) system has been proposed to improve the connectivity within Iskandar Malaysia, according to Iskandar Regional Development Authority (IRDA) chief executive Ismail Ibrahim.

“The MRT project will be developed in five or six phases. The first phase is expected to be completed by 2020. The announcement will be made by the Prime Minister if the proposal is accepted,” he said at the Invest Malaysia 2011 yesterday.

He said IRDA planned to build a bus rapid transit (BRT) first and expanded to MRT after that. However, it is still in the planning stage.

“The proposed BRT is about 400km with various phases. The first phase will be about 40km. Connectivity must be established within Iskandar as well as how Iskandar is connected with the outline region, including our neighbour,” he said.

On whether Singapore would extend its MRT to Johor Bahru, Ismail said: “There is actually no discussion with regard to extending the MRT from Singapore to Johor but there has been discussion about wanting to look at connectivity between Johor Baru and Singapore by use of rail, which could be an MRT system. It might so happen to be the same system or it might be a dedicated system.”

IRDA is the regulatory authority mandated to plan, promote and facilitate the development of Iskandar Malaysia into a strong and sustainable metropolis of international standing.

Ismail said Iskandar Malaysia was targeted to attract investments of RM13bil annually into the region, with a target of RM73bil in the next five years following the completion of key infrastructure education and tourism projects by 2012.

He said Iskandar Malaysia had recorded a total investment of RM69.4bil as at December last year and the total had grown to RM73bil as at the first quarter of this year.

“Iskandar Malaysia has moved into Phase 2 of Iskandar Malaysia Compre-hensive Development Plan (2006-2025) with the completion and deliveries of major infrastructure and iconic investment projects, recording RM28bil at end of 2010,” he said.

Meanwhile, Iskandar Investment Bhd chief executive officer Datuk Syed Mohamed Syed Ibrahim said the launch of Iskandar Investment's pioneering catalytic developments beginning 2011 would accelerate the inflow of investment in projects and human capital development into Iskandar Malaysia.

“This will contribute not only to Malaysia's expected growth of 5% to 6% in real gross domestic product in 2011, but also support our nation's aspirations of becoming a high income nation by 2020,” he said in a statement.

RM2.94bil worth of properties will be launched in Penang this year

Monday April 11, 2011

By DAVID TAN The Star

GEORGE TOWN: Some RM2.94bil worth of residential and commercial properties from six developers, based in Kuala Lumpur and Penang, will be launched on the island this year.

The south and south-west of the island will see some 1,275 units of residential and commercial properties launched with an estimated gross sales value (GSV) of RM1.45bil, while the north-east district will see the development of about 1,166 units of properties valued at RM1.49bil.

The commercial component in the south and south-west district is about 156 units with a GSV of RM221mil.

In the north-east, the commercial component will comprise 308 units of serviced suites and shop lots with a gross sales value of RM160mil.

Mah Sing Group Bhd, IJM Land Bhd, SP Setia Bhd, Ideal Property Development Sdn Bhd and Wabina Holdings Sdn Bhd are some of the developers that have drawn up plans for new launches this year.

In the south-west, Penang-based Ideal Property Development Sdn Bhd is launching the most projects this year with a combined estimated gross sales value of RM793mil.

Its projects in Bayan Lepas include the RM295mil Fiera Vista, comprising 470-unit condominiums;the RM250mil Valencia Park bungalow scheme, comprising 142 detached houses; and the RM248mil Taipan, a mixed development project comprising 75 shop lots (GSV RM149mil) and 75 semi-detached houses (GSV RM99mil).

“Both Fiera Vista and Valencia Park will be launched in July or August, while the Taipan will be launched in October,” Ideal Property managing director Datuk Alex Ooi said.

IJM Land is launching in June the RM300mil Light Collection III, comprising 150-unit condominiums next to the Penang Bridge, and the RM113mil The Address in Bukit Jambul comprising 148 low and high-rise condominiums in September.

For the commercial market, IJM Land is launching in the second half of 2011 the RM72mil Pearl Regency, comprising 81 retail lots, for its Metro-East mixed development scheme, near the Penang Bridge.

SP Setia Bhd's key project in the south-west district this year is the RM120mil Pearl Villas, comprising 35 bungalows, to be launched in April.

Wabina Holdings Sdn Bhd is introducing the first high-end condominium scheme, the RM50mil Pavilion Tower, comprising 99 condominiums in Teluk Kumbar, south-west district of the island.

In the north-east district, Mah Sing is undertaking the development of the Icon Residence at Burma Road and Batu Ferringhi Residence in Batu Ferringhi, which have a combined GSV of over RM1bil.

The group's spokesman said the RM280mil Icon Residence, comprising 280-unit condominiums with built-up areas ranging from 1,400 sq ft to 2,500 sq ft, would be unveiled in the second half of 2011.

The units are tentatively priced from RM770,000.

At the same time, the group will also introduce the RM800mil Batu Ferringhi Residence, which will comprise over 500 semi-detached houses and bungalows.

“There will also be condominiums with built-up areas of between 850 sq ft and 1,800 sq ft, priced from RM468,800,” he said.

SP Setia Property (North) general manager S. Rajoo said the group would launch the RM65mil Brooks Residences, comprising 11 bungalows, and the RM188mil Setia V Residence, comprising 67 units, in Kelawei Road, near Gurney Drive.

The projects would be launched respectively in July and September.

IJM Land is expected to launch the RM160mil Maritimes project, a commercial scheme which will comprise 240 serviced suites and 68 shop-lots.

Khazanah stresses on need for timely delivery of KLIA2

Monday January 24, 2011

By JEEVA ARULAMPALAM
jeeva@thestar.com.my

PETALING JAYA: Two years since airport operator Malaysia Airports Holdings Bhd (MAHB) was tasked to build the permanent low-cost carrier terminal (LCCT) in Sepang now known as KL International Airport 2 (KLIA2), its holding company Khazanah Nasional Bhd has come out to say that the timely delivery of the airport is critical for the country's air transportation development.

In Khazanah's annual review media briefing held last Tuesday, managing director Tan Sri Azman Mokhtar said it was crucial for KLIA2 to be delivered on time and executed well to support future air traffic growth.

The statement was made when Azman was providing an update on the RM58bil investments made by Khazanah and its majority-held units for the three year period from 2009 to 2011. Khazanah has a 54% stake in MAHB.

Datuk Seri Tony Fenandes hopes MAHB can help keep cost low for passengers using KLIA2.

The current targeted completion date for KLIA2's terminal building is April next year with the runway to be completed two to three months later.

This deadline marked a six-month delay from the original deadline set, which was the third quarter of this year, when the development was first announced in early 2009.

MAHB managing director Tan Sri Bashir Ahmad told reporters at KLIA2's ground-breaking ceremony last August that the process involved in building KLIA2 had taken time due to its extensive tender process as well as MAHB not wanting to compromise on the terminal's quality and passengers' safety.

It was also learnt through sources that the delay then in getting the project off the ground was further compounded as the airport operator and low-cost carrier AirAsia were not able to agree on airport specifications.

The contract for KLIA2's main terminal construction over a 20-month period was awarded last July to a joint venture between UEM Construction Sdn Bhd and Bina Puri Holdings Bhd.

However, renewed concerns that KLIA2 may not be up and running by next year have been expressed by AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes and are factored into the airline's decision to defer its new aircraft delivery as he only expects KLIA2 to be ready in 2013.

When contacted by StarBiz, Fernandes said he was glad to note Khazanah was taking an active role in emphasising the timely delivery of KLIA2, with the quality and safety aspects of the airport being maintained.

He also expressed his hope for MAHB to help the airline keep cost low for passengers travelling out of KLIA2, especially in terms of airport taxes. Airport taxes for domestic flights and international flights out of the LCCT are RM6 and RM25 respectively.

“I hope Khazanah and MAHB will look into developing more LCCTs in the country such as in Kuching to facilitate the growth of the low-cost air travel segment. There is also a need to extend the current LCCT in Kota Kinabalu to enable our route expansions and with the advent of Firefly operating out of the main terminal,” said Fernandes.

Although KLIA2 is meant to accommodate the growth seen in low-cost carrier (LCC) passenger numbers locally and open to other LCCs, the key push for its construction was budget carrier AirAsia's rapid expansion over the years and the sharp rise in passenger growth.

AirAsia, which operates from the current LCCT in Sepang, has outgrown the terminal despite MAHB expanding the facility between 2008 and 2009 to cater for some 15 million passengers per annum from 10 million passengers previously.

To re-cap, AirAsia sought to build its own LCCT in 2008 to cater for the rise in its passenger volumes and future growth but the Government stepped in and dissuaded AirAsia from doing so, as a newer and bigger LCCT in Sepang had been part of the National Airport Master Plan, a comprehensive study on the development of Malaysia's airport capacity over the next 50 years.

KLIA2 will be able to handle up to 30 million passengers per annum, with expansion capacity of up to 45 million passengers per annum.