MAHB plans catalytic projects at KLIA Aeropolis

By Sharen Kaur
Published in NST on April 30, 2014

DIVERSIFIED AIRPORT CITY: Mega development includes cargo and logistics hub, commercial business district, a theme park

MALAYSIA Airports Holdings Bhd (MAHB) is planning catalytic projects at KLIA Aeropolis here, which will spur domestic and foreign investments in the multi-billion ringgit development.

More than 2,428ha of the 8,966ha KLIA Aeropolis has been developed, while the undeveloped area is planted with oil palm trees.

The development is located about six kilometers from the Kuala Lumpur International Airport (KLIA) and the Kuala Lumpur International Airport 2 (klia2).

MAHB senior general manager of planning, Mohd Khair Mirza, said several catalytic projects are at planning stages, including a cargo and logistics hub, a commercial business district and a theme park.

“KLIA Aeropolis is a mega development and we have interested parties who want to invest in it. We are talking to them,” he said on the sidelines of the ground-breaking of Mitsui Outlet Park KLIA, here, yesterday.

Mohd Khair had earlier said about 1,000ha has been reserved for the theme park and the size suits Disneyland, whose operator is looking for a site to expand in this region.

KLIA Aeropolis will also feature a free commercial zone, a centre for meetings, incentives, conventions and exhibitions, hotels, natural conservation and green tourism zones, which will be completed within the next five to 10 years.

Mohd Khair said KLIA Aeropolis, when completed, will help increase MAHB’s non-aeronautical revenue and net profit contribution to between 60 per cent and 70 per cent. 

Currently, non-aeronautical businesses contribute more than 50 per cent to the national airport operator’s revenue and net profit.

For fiscal year 2013, MAHB, which manages 39 airports in Malaysia and overseas, posted a net profit of RM388.93 million on revenue of RM4.09 billion.

MAHB chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah said that KLIA Aeropolis will spark growth for the company, KLIA, klia2, retailers and aviation companies.

“Our vision is to transform KLIA into a diversified airport city with significant business, tourism and employment opportunities,” he said.

He added the encouraging growth in passenger movements augurs well for the KLIA Aeropolis vision, whose critical returns, among others,  is the opportunity to expand the group’s non-aeronautical base, in line with its 2010-2014 business direction.