KXP set to be a hub for haj, umrah flights

Kedah Menteri Besar Muhammad Sanusi Md Nor said he was confident that the offer of flight services to the holy land would definitely be good news for the people of Kedah and other states in the northern region.

To ensure that the KXP materialises in the next five years, he said the state government today signed a joint-venture agreement with ECK Group for the setting up of a special purpose vehicle (SPV) which will be the owner and developer of the project.

"A total of 80 per cent equity stake in the SPV is owned by ECK, while the rest is owned by the state government through KXP AirportCity Holdings Sdn Bhd (KXP AirportCity), a subsidiary of the Kedah State Development Corporation (PKNK)," he said in a statement here today.

At the signing ceremony, Muhammad Sanusi, who is also chairman of KXP AirportCity, signed on behalf of the state government, while ECK was represented by its group managing director, Tan Sri Dr Khor Eng Chuen.

PKNK chief executive officer Syed Yussof Syed Othman and KXP AirportCity acting chief executive officer Nur Salman Saad witnessed the ceremony.

Muhammad Sanusi said the first phase of the project costing RM6 billion, including for the land acquisition process, would begin in the near term.

He said the KXP project would lead to several other projects, including the development of a major infrastructure, namely the Northern Corridor Highway (NCH) linking Bandar Baharu and Sungai Petani via KXP.

He said the KXP, which is expected to be completed by 2026, will bring significant changes to Kedah's economic landscape as it will play a key role in the development of several branches of the regional aviation industry, including as a halal and e-commerce industry hub for the ASEAN region, pharmaceutical products and various cargo categories.

Muhammad Sanusi said the airport would also be made an aviation industry overhaul hub and a regional disaster operations centre owing to its location in the heart of the Southeast Asian region.

"In terms of the economy, the state government is optimistic that the KXP will be able to raise Kedah's gross domestic product which is projected to grow at 7.5 per cent per year from 4.5 per cent currently.

"The airport is also expected to contribute to gross national income (GNI) of RM1.186 billion (US$281 million) in 2026," he said, adding that the KXP is also expected to provide between 15,000 and 18,000 jobs to locals.