Govt plans to upgrade Penang and Subang airports, let private sector develop Carey Island port

• The proposed Kulim airport "cannot be considered under current conditions”, said Anwar. 

KUALA LUMPUR (Feb 27): The government intends to upgrade the Penang and Subang airports, while letting the private sector develop the main port at Carey Island, in its bid to attract more international investment and tourists to the country, said Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.

He said the expansion of the two airports, which is spearheaded by Malaysia Airports Holdings Bhd (MAHB), is expected to promote economic growth at a cost that is far lower when compared to the proposal to spend RM7 billion on building a new airport in Kulim, Kedah.

The proposed Kulim airport "cannot be considered under current conditions,” said Anwar when presenting the revised Budget 2023 in Parliament on Friday (Feb 24).

On the Carey Island port, he said the project could strengthen Port Klang as a main hub for Southeast Asia.

On top of that, since the government has named Tun Razak Exchange as Malaysia’s international financial hub, Anwar said TRX will have to work towards attracting capable global financial industry for it to become a main destination for high quality foreign investment, which could strengthen the country’s business ecosystem.

“The government also proposes to strengthen the development at Johor’s Iskandar Malaysia by outlining a special financial zone with competitive remuneration package to attract international investors and high knowledge talent to reside in the country,” he said.

Anwar said Malaysia has big potential in the electrical and electronic, and aerospace sectors, and the government proposes to extend tax incentives for manufacturing companies that move their operations to Malaysia, and also extend the 15% tax rate on non-citizen individuals holding key positions (C-Suite) until 2024.

Putrajaya will also extend income tax incentives and investment incentives until end-2025 in the aerospace industry to encourage existing companies to expand their capacity and attract investment from new companies, the prime minister said.

“Bank Pembangunan Malaysia Bhd has set aside up to RM6 billion strategic financing specifically to encourage a sustainable and automation agenda, on top of support in the form of equity and working capital for high potential companies that are still affected by Covid-19,” he added.

Anwar said the government will also focus on supporting the development project at Sanglang Port in Perlis to handle petroleum and bulk cargo that will add value to the state's economy.

“At the same time, the government will build a new structure to prevent coastal erosion between Kuala Sanglang, Perlis to Kuala Jerlun Kubang Pasu, Kedah,” he said.