Dr Salleh (third left) and Tan exchanging mementos as (from left) Rudy, Ahmad Rizal, Syed Ali and Abdul Rahim look on after the MoU signing.
KUALA LUMPUR (June 30): The Sabah Government’s strategic investment arm, Qhazanah Sabah Bhd (QSB) has signed a Memorandum of Understanding (MoU) with renowned property developer, Berjaya Land Berhad (B-Land) to explore the possible relocation of Kota Kinabalu International Airport (KKIA) to Kimanis.
At the MoU signing, QSB was represented by its group chief executive officer Ahmad Rizal Dahli and witnessed by its group company secretary Rudy Jaglul.
Signing on behalf of B-Land was its deputy chairman and Berjaya Corporation Berhad joint group chief executive officer Syed Ali Shahul Hameed, with Berjaya Corporation Berhad chairman Tan Sri Dato’ Seri Vincent Tan Chee Yioun as witness.
Also present at the event were QSB chairman Datuk Seri Panglima Dr Salleh Said Keruak, QSB director Datuk Johnson Tee, and B-Land chief executive officer Datuk Abdul Rahim Mohd Zin.
“The MoU establishes preliminary collaboration between both companies, paving the way for QSB to carry out feasibility studies and exploratory works for the proposed project. Everything is preliminary at the moment until consensus with all relevant stakeholders is reached,” said Ahmad Rizal.
He added that as the Sabah government’s investment arm, QSB has been tasked with looking into various strategic development initiatives to support the economic growth of Sabah, including the possible relocation of KKIA to Kimanis.
He stressed that feedback from all stakeholders would be taken into consideration and consensus had to be unanimous before any decision is made on the proposed relocation.
“The relocation of KKIA had been suggested in various discussions across the board for a decade. This MoU allows us to look at this in more detail, particularly in terms of economic viability and social impact assessment. We are looking forward to tapping on the expertise brought on board by the early partnership with B-Land, particularly on infrastructure development.
“Any outcome as a result of the feasibility studies would be made in the best interest of the state. This has always been and will continue to be our focus in whatever we do,” he said.
According to Ahmad Rizal, KKIA is unlikely to be able to expand further in operational terms, including expansion of its terminal building and runway as well as other facilities, due to limited land area and its current location, which is surrounded by privately owned land and its proximity to Kota Kinabalu city centre.
“On top of that, the proximity can be one of the risk factors for delayed development of the city centre due to the regulations and restrictions set by having an airport nearby. A relocation of KKIA to Kimanis, on the other hand, could result in the airport having more than one terminal building and runway.
“Sabah will then be able to leverage its geographically central location in Southeast Asia to explore becoming an air travel hub within the East Asian region. The possibilities are there,” he added.
Meanwhile, B-Land’s deputy chairman Syed Ali said that as a leading property developer, both locally and abroad, B-Land was honoured to be a part of this initiative and be given the opportunity to contribute positively towards the economic and social development of Sabah.
The MoU covers the relocation of KKIA involving the construction and development of a new international airport in Kimanis as well as a sustainable development plan to be undertaken within Kimanis or on any other land deemed suitable by the Sabah Government.
A special purpose vehicle will undertake the proposed project upon completion of a detailed technical and financial feasibility study, strategic business plan and financial modelling proposal to be agreed by both parties.