News

Monday February 23, 2009

Sime Darby lacks funds, new terminal to be built within KLIA

By EDDIE CHUA


eddiechua@thestar.com.my

PHUKET: The proposed RM1.6bil low-cost carrier terminal (LCCT) project in Labu, Negri Sembilan, has been cancelled.

Deputy Prime Minister Datuk Seri Najib Tun Razak said the project would not be carried out as Sime Darby Berhad had no funds to initiate the infrastructure.

“Instead, the new LCCT will be built within the KL International Airport,” he said after attending a special Asean + 3 Finance Ministers meeting yesterday.

He said Malaysia Airports Holdings Berhad would build the new LCCT.

Malaysia Airports is also expected to work closely with AirAsia. It is understood that the budget airline’s input in the building of the new terminal will be taken into consideration.

“We are still negotiating the terms and conditions with AirAsia on the new LCCT,” he said.

Najib’s announcement put paid to the notion that the government was considering having the LCCT in Labu.

“The decision is final. The LCCT in Labu has been scrapped,” he said.

On the mini-budget to cushion the impact of global financial woes on the local economy, Najib said it “will be bigger in size than what is being speculated.”

Najib, who is also the Finance Minister, will table the mini-budget in Parliament on March 10.

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