KUALA LUMPUR: The cabinet has approved a RM442.3 million upgrade of Kota Kinabalu International Airport (KKIA).
Transport Minister Anthony Loke said the pre-construction phase would begin this year, with construction expected to take two years and be completed by 2027.
He added that the cabinet approved the proposal on Nov 8.
"The project will cost RM442.3 million, fully funded through a private financing initiative by Malaysia Airports Holdings Bhd (MAHB) without any government guarantees," he said at a press conference in Parliament today.
The upgrade includes an expansion of the main terminal, increasing the capacity from nine million to 12 million passengers per year.
New facilities and infrastructure will also be added, including a multi-storey car park, seven aircraft parking bays and improvements of roads around the airport.
KKIA will adopt green technology and integrate automation and advanced systems to enhance operational efficiency.
"KKIA currently has a capacity of nine million passengers per year, making it Malaysia's second busiest airport after Kuala Lumpur International Airport," said Loke.
"In 2019, KKIA recorded a passenger capacity of 9.4 million passengers per annum, exceeding its capacity.
"Despite a decline in 2020 and 2021 due to the Covid-19 pandemic, passenger numbers began to rise in 2023 to seven million people."
Loke said projections indicated that passenger numbers were expected to reach 12.4 million by 2034.
Up to October this year, he said, KKIA recorded 6.6 million passengers, a 13.4 per cent increase compared with the same period last year.
"This project reflects the government's commitment to ensuring Sabah's infrastructure meets current needs while preparing for future demands.
"I am confident that this investment will not only yield returns to MAHB, but will also open doors to opportunities and prosperity for the people of Sabah and our country.
"The Transport Ministry appreciates the support from the Sabah government and MAHB in making this project a success," he added.
He gave his assurance that KKIA's operations would remain unaffected during the upgrade, with flights continuing as usual and passengers managed through existing facilities.
"The construction involves an additional building block, meaning an extension of the current terminal.
"Our goal is to minimise any impact on passengers and hope that the construction process will run smoothly.
"We cannot close the airport for the expansion project. It still needs to function and operate as usual while the project is being carried out, just like we did for Kota Baru Airport."
Loke said Tawau Airport would also be upgraded using the development budget that had been approved.
"The next one is Miri Airport and we are also looking into upgrading Ipoh Airport because there is a demand for it. The Sarawak government is also considering a new airport in Kuching.
"The Transport Ministry views these airports as strategic assets that need improvement to maximise economic returns.
"We have many opportunities to expand our markets and increase the number of flights, but the facilities and assets of these airports must be upgraded. Otherwise most of our airports will become congested in a few more years."