![[UPDATED] Govt to establish first Airport Development Fund: Loke](https://media.thevibes.com/images/uploads/covers/_large/20230209-anthony_loke_transport_ministry_presser_on_feb_9-screen_grab.jpg)
KUALA LUMPUR – The government will be establishing an Airport Development Fund (ADF) to accumulate monies for the development of airports in the country, said Transport Minister Anthony Loke.
The fund, he said, is one of the conditions of an operating agreement (OA) with Malaysia Airports Holdings Bhd (MAHB), which aims to operate, manage, maintain, and develop 39 airports and airfields in Malaysia until 2069.
“50% of the passenger service charge component (PSC) that is taken into account in the calculation of the user fee will be channelled to the ADF trust account.
“The percentage of the PSC or percentage of other components in the user fee to be contributed to the ADF account will be reviewed every three years,” Loke said during a press conference today.
Noting that the fund is the first of its kind in Malaysia’s airport development works, he added that the ministry will determine how the collected funds will be utilised to improve airport conditions.
During a cabinet meeting on February 2, it was decided that the government agrees in principle to the new material terms of the OA between Putrajaya and MAHB.
Another suggestion presented by MAHB in the OA includes rebranding KLIA and klia2 to KLIA Terminal 1 and KLIA Terminal 2, respectively, to improve marketability and effectiveness.
“The proposal to sign the OA and the rebranding of KLIA and klia2 is important for the commercial sustainability of KLIA and also the growth of airports throughout the country,” said Loke.
He added that the changes in names will not be implemented immediately as the signing of the OA is expected to take place before the end of the first quarter of this year.
On Monday, it was reported that the cabinet has approved the proposed Subang Airport Regeneration Plan (SARP) prepared by MAHB.
Loke had said the plan will focus on the development of the aerospace ecosystem, general aviation/business aviation, and city airports (city airport/secondary airport). – The Vibes, February 9, 2023
