Private companies welcome to invest in 'less competitive' airports, says Loke

The Star

Private companies are welcome to invest in "less competitive" airports, says Anthony Loke.  Speaking to reporters after attending the 22nd Perak DAP annual convention on Sunday (Oct 29), the Transport Minister said discussions have been held with Malaysia Airport Holdings Berhad (MAHB) to consider a public-private partnership (PPP) model due to the country’s financial constraints.  Read more at https://tinyurl.com/y4npusct  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00 (announcing names of the winners)

00:09 The government has accepted a request from the government of the West

00:14 regarding the proposal to increase or increase the number of airports in Ipoh

00:22 I was also informed that there are private companies that are interested

00:26 but the airport in our country is controlled by MHB

00:32 so whatever the proposal, it needs to get approval from MHB

00:39 but I also discussed with MHB to look at the same business model or PPP model

00:48 that is, they can also work together with certain private companies

00:54 when there are appropriate terms and conditions

00:57 to control certain airports

01:01 so in this case, there is a special proposal for the airport in Ipoh

01:06 to increase the number of their terminals

01:09 so this is something that I as a member of the committee have been discussing

01:14 because we also want to see our airports in the whole country get a raise

01:20 because the previous model was an airport that was considered uncompetitive

01:28 it was not economical because there was not much aviation

01:31 so MHB will not invest to increase the number of airports

01:36 until they get approval from the government

01:40 but with the financial situation in the committee

01:44 we need to find a new way

01:46 through PPP, Public Private Partnership

01:49 to raise the number of airports

01:53 that maybe there are parties that feel they have ideas or ways

01:59 to increase the number of airports

02:01 so Ipoh is one of the private partnerships

02:04 to raise the number of airports

02:08 that maybe there are parties that feel they have ideas or ways

02:14 to increase the number of airports

02:17 so Ipoh is one of the private partnerships

02:19 that I have received a proposal or a letter

02:23 that says they are interested to operate or invest in this airport

02:29 this is something that we try to help in our network

02:34 to make this project a reality

02:36 what is the PPP model, David?

02:38 PPP means Public Private Partnership

02:40 meaning there are private parties that will invest

02:45 and they will take time to get their return

02:49 so because there is a return

02:51 investment in this airport is of course a return

02:54 because first, each airport has a passenger service charge

03:00 so if the airport is competitive, it can fly a lot

03:04 passengers can enter a lot, then it has a lot of income

03:08 and in the airport, there are retail, shops that can do business etc

03:13 so this is the model that we are looking at now

03:17 how to get private investment to cooperate with the MHB

03:24 so in Ipoh or other countries, there will be an update to India Airport?

03:28 it is a return

03:31 Penang Island has a different model

03:33 because Penang Island is a viable airport

03:36 because there are a lot of passengers

03:38 Ipoh is not a viable airport for MHB

03:41 because there are not a lot of passengers

03:43 but it will not create a demand for a new investment

03:50 that is why MHB does not have the intention to expand Ipoh Airport

03:58 with their own model

04:00 so that is what I said

04:02 when there is an intention and desire from other private companies

04:06 we need to see how to cooperate with MHB

04:10 without giving a negative effect to MHB

04:14 Thank you

04:16 Thank you for watching. Please subscribe to my channel.

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