Wednesday, November 12, 2008

MPs query Govt’s funding of RM1bil yearly to KLIA

SEVERAL MPs questioned the Government’s continuous allocation of RM1bil a year to the KL International Airport a decade after its construction.

Tan Sri Khalid Ibrahim (PKR — Bandar Tun Razak) said after 10 years, the airport should be able to run on its own and meet its operating cost.

Debating the Budget at committee stage, he questioned why the Government still needed to allocate funds for the airport and asked the Finance Ministry for an explanation.

N. Gobalakrishnan (PKR — Padang Serai) said it was time that the Government looked into privatising KLIA. “This may ease the burden and save costs for the Government,” he said.

He added that in developed countries, airport management was handled by the private sector. In return, the airports were well managed with good quality of service.

Khairy Jamaluddin (BN — Rembau) questioned the sustainability of corporatised projects and the need for the Government to continue supporting them.

Citing an example, he said Indah Water Konsortium (IWK) was a failed project where the Government was forced to buy its equity in 2000. He said the IWK, which started in 1994, never made a profit and another RM250mil was being allocated to support it next year.

“Many incentives have been given to them and I am questioning their sustainability,” he said. Khairy asked about Cyberview Sdn Bhd in Cyberjaya, where he said companies and businesses were not inclined to venture into research and development. He added this was a diversion from the original intention of developing Cyberjaya.

source: MPs query Govt’s funding of RM1bil yearly to KLIA Malaysia Star