KUALA LUMPUR: Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has urged Prime Minister Datuk Seri Anwar Ibrahim to approve the Kedah Aerotropolis logistics hub project.
He said the project, which is expected to cost RM7 billion, will be fully funded by the private sector and will not require any funds from the federal government.
Sanusi further said the project will have two main partners who will also serve as the state government's strategic associates in this development.
"The development of the Kedah Aerotropolis Project will serve as an 'economic game changer' for the northern region.
"The state government is committed to developing this Kedah Aerotropolis to raise the economic status of the B40 (the majority of the residents in Kedah) to M40, T20 and beyond. This is in line with the Kedah Development Plan 2035 and the 12th Malaysia Plan.
"Funding for the project will be sorted out in due time. There won't be a need for federal funding, so it won't burden the federal government financially," he wrote in a recent Facebook post.
The Kedah Aerotropolis project includes the construction of Kulim International Airport (KXP) in Kuala Muda.
Sanusi added that the Kedah Aerotropolis would serve as a cargo hub, including frozen and trans-shipment cargo, and a maintenance, repair and overhaul (MRO) hub for the Southeast Asia region.
"Kedah Aerotropolis, with its aerospace, MRO, and cargo shipment facilities, would complement the Penang International Airport (PIA), to help it deal with its passenger influx."
He also argued that the federal government's plans to upgrade international airports in Subang and Penang were different from the Kedah Aerotropolis as it involves building a completely new terminal and runways, among other related buildings.
During the tabling of the 2023 Budget, Anwar had said the federal government plans to expand and upgrade the Penang International Airport and Sultan Abdul Aziz Shah Airport in Subang to attract more investors, traders and tourists.
The prime minister had said that these plans would less costly than build the RM7 billion new airport in Kulim, Kedah.
