The developers of KXP have yet to address certain issues, says minister

KXP AirportCity Holdings Sdn Bhd the company that would be developing the Kulim International Airport (KXP) has not yet address the issues raised by several agencies, namely the Royal Malaysian Air Force (RMAF) and the Civil Aviation Authority of Malaysia (CAAM) which has led to a delay in it obtaining the due approval.

“The RMAF has raised questions regarding the development impact of KXP towards air traffic management, defence security and stability and operations of RMAF’s main base,” said Transport Minister Anthony Loke in a written reply.

CAAM had two key issues.

“CAAM found the lack of documentation and strong evidence to support KXP’s capability to retrieve RM5.67 billion Phase 1 of the project.

“There was no risk mitigation strategy to obtain funds from investors.

“CAAM also noted the lack of demand for full cargo to operate in KXP. It found that the cargo estimates to be overly ambitious.”

Loke said this in response to a question regarding the KXP project from Hassan Saad (PN-Baling).