Unresolved feuds in transport sector will cause untold losses

 

From Rahim Zainuddin

With Budget 2022 fast approaching, unresolved feuds continue to plague the transportation sector in Malaysia.

To date, neither Prime Minister Ismail Sabri Yaakob nor transport minister Wee Ka Siong has addressed any of these matters, and concern is brewing that billions of ringgit will continue to be spent and lost as a result.

Take, for example, the feud developing between Kedah and Penang over the Kulim International Airport (KXP), which saw Kedah menteri besar Muhammad Sanusi Md Nor issuing a terse statement on Monday calling the Penang government a “nuisance” and saying that his state had the right to carry on with the project!

Really? Even now?

Apparently, phase 1 of this new airport is expected to cost approximately RM1.6 billion, which will be used for land acquisition, infrastructural developments and to construct two runways.

Does Kedah even need a third airport?

First mooted in 2014, the initial plan was to develop an “aerocity” to accommodate all industries relating to air transportation. In March the following year, it was said that the airport would operate as a cargo facility to meet local demand for freight services. Then in April 2016, it was claimed that KXP was needed to ease both passenger and cargo traffic at Penang International Airport.

Even the mode of funding KXP’s construction seems to have changed.

Back in January 2015, then menteri besar Mukhriz Mahathir claimed that the project was “not totally dependent” on federal funding, but that the state government was evaluating other modes of financing the project.

Despite this, the federal government eventually approved an outlay of RM1.6 billion in March 2019 to build the airport.

Given that the aviation industry is now at an all-time low due to the Covid-19 pandemic, the present administration must give a clear answer whether there is still a genuine need up north for KXP to be constructed.

Next, there is the furore created by the Perikatan Nasional (PN) government’s reversal of a cabotage exemption given to foreign submarine cable repair vessels by its predecessor in March 2019.

Wee’s decision to remove the exemption clearly irked tech giants Google, Facebook and Microsoft. In retaliation, Facebook and Google excluded Malaysia from the route of “Echo”, “Bifrost”, and “Apricot” – three of their recent major subsea optic cable investments.

Despite reports about this issue early last month, former prime minister Muhyiddin Yassin’s Cabinet never got down to discussing the matter, and it seems like the present administration, which has retained Wee as transport minister, is also dithering.

How does one attract high-value investments with dated technology, Mr Prime Minister?

Then, there is the on-going saga surrounding the Klang Valley Double-Tracking Project (phase 2), better known as KVDT2, which sees the federal government in court defending its August 2019 decision to cancel the construction contract previously awarded to Dhaya-Maju LTAT.

With the legal case in full swing, the project appears to be stalled indefinitely. This will not resolve traffic congestion in the areas involved or make it easier for potential rail passengers.

In addition, thousands of employees are at risk of losing their jobs due to the cancellation, while the government itself is exposed to a substantial claim in damages for wrongful termination.

Is public interest not a compelling enough reason for the government to resolve this matter expeditiously?

An amicable resolution will get the project back on track, save jobs and spare the public purse unnecessary expense. Is the government trying, or is it looking away? - FMT

Rahim Zainuddin is an FMT reader.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.