20 March 2019

Press statement by MCA Vice President Datuk Tan Teik Cheng

Political motivation behind chasm in federal allocation for Penang & Kedah airports?

Whilst the Pakatan federal government has announced an allocation of RM1.6 billion to construct an international airport in Kulim, Kedah, why should expansion of the Penang International Airport be required to solicit funds through the Private Finance Initiative (PFI)? It strikes as baffling that Putrajaya is generous on grants allocation towards the Kulim International Airport but not so for PIA reeking of preferential treatment compounded by political motivation.

Allow me to express my congratulations to Kedahans on the soon-to-be-built Kulim International Airport (KIA). However, it does seem odd that the PH government is channeling funds directly for its construction. In contrast, the long-awaited expansion of PIA needs to be funded through private financing. Is there a political agenda for this differential treatment?

While the federal government will channel RM3.2 billion to the KIA along with 6 other projects as outlined in the 11^th Malaysia Plan, there was no news on the RM1 billion transitional loan sought earlier from the federal government for the Penang Transport Master Plan. This fuels doubts that Penang is being sidelined over Kedah on federal allocation.

Finance Minister Lim Guan Eng had said on March 3, 2019 that the PIA expansion plan will be funded via the PFI. However, not more than 20 days later, Economic Affairs Minister Dato’ Seri Azmin Ali announced that the federal government will build the Kulim International Airport through direct funding. Not only has Guan Eng scored his own goal, Azmin’s announcement also raises the question of political motivation for KIA’s construction.

The current Kedah Menteri Besar Dato’ Seri Mukhriz Mahathir is also Prime Minister Tun Dr Mahathir’s son. It is thus natural for the rakyat to raise questions on the way funds are being channelled for the construction of airports in both states.

Controversy reigns as to how both international airports can avoid competing with each other, as their distances is less than 50kilometres apart. If the government is unable to prevent so, one of the airports will turn into a white elephant project.

If the soon-to-be-built KIA is able to provide the same passenger transportation services as that of PIA, then those residing in Kedah, Seberang Perai and Butterworth may not opt to fly from the Penang. This will leave a huge impact on Penang’s aviation industry. The less competitive party will definitely lose out and become another white elephant project.

I urge the federal government to conduct a comprehensive study before implementing any policy that may affect the people, rather than wasting taxpayers’ money so as to gain political mileage, which also cannot enhance local competitiveness. 

Datuk Tan Teik Cheng
MCA Vice President
MCA Penang State Liaison Committee Chairman

-MCA Online-