Kedah wants full-fledged airport in Kulim

KULIM (April 15): The proposed Kulim International Airport (code-named KXP) is back to being a full-fledged passenger and cargo airport in the final proposal to be submitted by the Kedah government to the prime minister in the third quarter of 2016.

State science, innovation and information technology, communications, high technology and human resources committee chairman Datuk Norsabrina Mohd Noor said studies conducted by the state indicate that the airport, estimated to cost RM1.6 billion, should be full-fledged to cater to the growth in the Kulim Hi-tech Park (KHTP).

Last year, then menteri besar Datuk Seri Mukhriz Mahathir said KXP would start off as an air cargo airport based on reports that cargo traffic to Penang International Airport (PIA) was declining 10.5% annually due to overcapacity.

Speaking to reporters yesterday, Norsabrina said multinational corporations in Kulim are having trouble meeting their shipment schedules because PIA is reaching its maximum capacity.

“In order to send their shipments out via air freight, the companies use trucks to send them to KLIA (Kuala Lumpur International Airport), Singapore or Thailand.

“This is the biggest problem for us in KHTP, where the companies are not able to air transfer their goods via PIA, which cannot cater to the demand.

“The same goes with passengers. Penang (pictured) is reaching its maximum capacity,” she added, citing studies on PIA’s capacity by the Department of Civil Aviation and Malaysia Airports Holdings Bhd.

She added that the state had organised a workshop earlier this year to cross-study and compare details based on the findings by the Northern Corridor Implementation Agency for Kedah, and international auditor KPMG Malaysia for the Economic Planning Unit.

The studies, which would be merged into one final report soon, were concluded in November last year and include options on financing models involving both the federal and state governments.

Norsabrina said the Kedah government has identified 600ha of oil palm land in Sidam Kiri, about 20km from KHTP, for the airport project.

It was previously reported that KXP could contribute RM192 million to gross national income by creating 8,000 new jobs, mostly high-income, and RM13.75 million in revenue for the state.

Norsabrina was speaking to the media after opening Abbott Medical Optics Inc’s (AMO) US$60 million (RM233.4 million) Malaysian manufacturing plant here.

AMO, an intraocular lens maker, plans to manufacture four million of its Tecnis brand monofocal lens by 2020 to cater to the global market,  which sees about 22 million cataract surgeries annually in the world.

AMO medical devices executive vice president Robert Ford said the plant’s first shipment would roll-out in the second half of 2016 after it receives approval for the European Conformity marking, a regulatory approval.

“The growth of the cataract product industry is around 3% to 4% annually. Our sales growth is faster than the market at 9% to 10% every year,” he said, adding that the segment contributes 70% to its sales revenue.

AMO, a subsidiary of New York-listed Abbott Laboratories, has 25% of the market share, he said, adding that 75% of its manufacture of monofocal lenses would come from Malaysia by 2020.

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This article first appeared in The Edge Financial Daily, on April 15, 2016. Subscribe to The Edge Financial Daily here.