Govt not selling Subang Airport real estate: MoF

by HARIZAH KAMEL & NUR HANANI AZMAN

THE government has no plans to sell any airport real estate, including Subang Airport, to any party.

Finance Ministry (MoF) said airport real estate is considered government’s strategic asset.

The ministry said Malaysia Airports Holdings Bhd (MAHB) still has a lease for 60 years until 2067 on the land where Subang Airport is.

“The Subang Airport is one of the 39 airports operated by MAHB in line with the operating agreement between the government and MAHB sealed in 2009.

“MAHB is not the owner of any of the airport real estate,” MoF said in a statement yesterday, following media reports about the Subang Airport takeover proposals of late.

To date, MoF said MAHB is still the party mandated to develop the assets around Subang Airport, formally referred to as Sultan Abdul Aziz Shah Airport.

MoF further said part of the Subang Airport land has been sub-leased by MAHB to Subang Skypark Sdn Bhd for 30 years (2007-2037), which entails the operation of Terminal 3, car park area and hangarage.

MoF said any effort to maximise the value of Subang Airport assets would not involve real estate sales.

In a statement, Transport Ministry (MoT) said no Cabinet decision had been made on the sale of Subang Airport.

“Per the ministry’s statement on May 7, 2021, the government does not bar external parties from submitting proposals to redevelop existing projects or develop new assets.

“However, no decision has been made by the Cabinet to approve any proposal to sell any part of the Subang Airport to the private sector, as alleged by certain quarters,” it said.

MoT further said the operating rights and rights under the leased agreement granted to MAHB to operate, manage, and maintain, including to occupy, use and control Subang Airport remain valid until 2034 and 2067, respectively.

“MAHB is responsible for developing Subang Airport as an international aerospace hub as per the Cabinet decision of March 2, 2005. No decision has been made to alter this condition,” MoT said.

Meanwhile, in a press briefing yesterday, MAHB said the group would need to refer and confirm with the government for approval to implement its Subang Airport Regeneration Plan.

Malaysia Aerospace Industry Association (MAIA) president Naguib Mohd Nor said the past Subang Airport takeover talks had caused jitters among foreign investors.

“The industry demands a clear and unwavering direction to progress the sector, and Subang Airport is a key component. Hence, the plans must be approved quickly.

“Any delay of implementation will impact operators’ timeline, investment strategy and hence decision to invest in Malaysia,” he said to reporters.

He said investors in the aerospace industry would regard Subang Airport as high risk considering those takeover talks.

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