MP SPEAKS | PIA expansion project - clear manifestation of vengeance politics
MP SPEAKS | Transport Minister Wee Ka Siong’s answer in Parliament to DAP Jelutong MP RSN Rayer yesterday that the expansion and upgrading works for the Penang International Airport(PIA) was stopped pending the National Airport Strategic Plan (Nasp) study, which is due for completion after three years in 2023, is disappointing and against the interests of Penangites.
Waiting until after 2023 before a decision on the expansion is made is no different from cancelling the project outright, and is a clear manifestation of vengeance politics to punish Penang for not being aligned with the Perikatan Nasional federal government.
MP SPEAKS | Transport Minister Wee Ka Siong’s answer in Parliament to DAP Jelutong MP RSN Rayer yesterday that the expansion and upgrading work for the Penang International Airport (PIA) was stopped pending the National Airport Strategic Plan (Nasp) study, which is due for completion after three years in 2023, is disappointing and against the interests of Penangites.
Waiting until after 2023 before a decision on the expansion is made is no different from cancelling the project outright, and is a clear manifestation of vengeance politics to punish Penang for not being aligned with the Perikatan Nasional (PN) federal government.
I had announced the expansion project in the 2020 Budget in Parliament last year after PIA exceeded its original capacity of 6.5 million passengers annually with 8.325 million passengers last year, following a 6.9 percent increase in 2019 in passenger volume compared to 7.7 million passengers in 2018. The PIA expansion project is expected to cost RM800 million for its initial expansion of capacity from 6.5 million to 12 million passengers.
Why does PN have to wait until after 2023 to decide? Using the Covid-19 pandemic’s serious impact on Malaysia's tourism industry and the aviation sector as the excuse for waiting until 2023 is similar to the PN government expecting the Covid-19 pandemic to still be in our midst in three years time. PN must explain on what basis this wild assumption is made that the Covid-19 pandemic will not be over after 2023.
PIA is one of the few profitable airports outside Kuala Lumpur. Malaysian Airports Holdings Bhd (MAHB) had intended to fund the PIA expansion as a private financing initiative (PFI) since it will generate a positive rate of return. Whilst the Nasp study for the 39 airports under MAHB may be necessary for loss-making airports, it does not make sense for projects not to proceed in relation to profitable airports like the PIA.
Is Wee saying that there will be no infrastructure works for all airports until after 2023? Carrying out much-needed infrastructure projects is necessary spending to counter the current Covid-19 economic recession. Has the government forgotten that Malaysia's economy recorded its worst GDP growth contraction in history, with 17.1 percent in the second quarter this year?
The PIA expansion project had been scheduled to kick off in June this year and be completed by 2024. PIA a critical infrastructure project with 28 percent overcapacity in passenger volume, with 8.3 million passengers in 2019 using an airport meant for 6.5 million passengers. Further, the PIA expansion project when undertaken now will take four years to complete when the tourist situation is expected to be normalised.
Refusing to implement the expansion project is not only short-sighted but irresponsible and sends a wrong signal to investors that the economic situation will not be normalised in three years' time by 2023. This glaringly contradicts claims by the Finance Ministry that the economy will recover quickly by early 2021.
For sound economic and financial reasons, PN should continue with the PIA expansion project to quell suspicion that PN is victimising and punishing the Pakatan Harapan Penang state government for political reasons.
LIM GUAN ENG is Bagan MP, former finance minister, and former Penang chief minister.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
