KOTA KINABALU: The Transport Ministry will present a paper next week to seek the Federal Cabinet’s approval for the upgrade of Kota Kinabalu International Airport (KKIA), the main entry point to Sabah.
Its Minister, Anthony Loke, explained that the upgrade would be financed by Malaysia Airports Holdings Berhad (MAHB), the airport’s operator.
“This development model, funded by MAHB, is separate from what has been budgeted,” he said, adding: “This approach allows MAHB to recoup its investment, and it was excluded from the recent national budget announcement for that reason.”
The expansion aims to increase the airport’s annual capacity from nine million to 12 million passengers, which includes terminal building expansion, a multi-storey car park and additional retail spaces.
Loke also proposed the possibility of integrating a shopping mall within the terminal, similar to Kuala Lumpur International Airport’s Terminal 2.
“KKIA is the country’s second-largest and second-busiest international airport, with significant tourist traffic. Additional retail space will boost the local economy and create jobs,” he said, adding that construction could start as early as next year if Cabinet approval is granted.
Stressing the government’s ongoing commitment to Sabah, he noted the recent RM6.7bil allocation for development projects in the state, alongside other initiatives to bolster the local economy, as mentioned by Sabah Chief Minister Datuk Seri Hajiji Noor.
Loke also highlighted Sabah's burgeoning tourism sector and its critical role in the state economy, noting that KKIA’s pre-Covid passenger load had already exceeded its nine million passenger capacity.
“Tourism remains a cornerstone of Sabah’s economy, and KKIA is nearing its full capacity. This expansion is vital to accommodate the influx of visitors,” he said at the Sabah DAP Convention here on Sunday (Oct 27).
The upgrade proposal will also address airside enhancements, including runway improvements, with the total project cost estimated in the hundreds of millions, pending exact figures after Cabinet approval.
