CEO Morning Brief

Govt Cancels New Tioman Airport

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Publish date: Thu, 10 Aug 2023, 08:43 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Aug 9): The Cabinet has agreed in principle to not proceed with the construction of a new international airport on Tioman island, Pahang, said Natural Resources, Environment and Climate Change (NRECC) Minister Nik Nazmi Nik Ahmad.

In a statement on Wednesday (Aug 9), he said his ministry has taken note of concerns voiced over the reclamation of land as part of the airport's development, which will take place in protected marine areas, causing the destruction of coral reefs and loss of habitat to hundreds of species of marine life, which are the main attractions of Tioman island.

According to previous reports, the development of the new airport would encompass a 186.36ha area within a gazetted marine park boundary. About 76% of the area or 142.70ha will be reclaimed from the sea.

“Although the intention behind constructing the new airport was to attract more tourists, such development would undermine Tioman Island's natural appeal, leading to unsustainable tourism,” said Nik Azmi.

He added that the Cabinet's decision to call off the proposed Tioman airport involved public feedback, through the initial exhibition process for the Environmental Impact Assessment (EIA) report from June 21 to Aug 4.

It is worth noting that the project developer is Tioman Infra Sdn Bhd, a wholly-owned subsidiary of Tioman Hill Resort Sdn Bhd, which in turn is 50%-owned by Berjaya Corp Bhd (BCorp). The other 50% is held by the Pahang royal family through Aimvesco Sdn Bhd and the estate of the late Sultan Ahmad Shah Sultan Abu Bakar.

According to Nik Azmi, a total of 1,412 public comments were received during the exhibition period. However, he did not go into detail about the feedback receied.

In June 2018, Berjaya Corp Bhd founder and adviser Tan Sri Vincent Tan announced that the group planned to build a RM1.2 billion airport on Tioman island, with the construction to be financed by the group's internal funds and borrowings. He said that the proposed airport would be managed by the government if it was approved.

Meanwhile, Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Mohd Badlisham Ghazali said that the previous plans to develop an airport on Tioman had not been approved, as environmental impact assessment studies showed that the project would involve land reclamation. However, he welcomed Tan's idea of financing the development on behalf of the federal government if the latter found a way to overcome the island's environmental limitations.

Read also:
Tioman airport construction not approved yet, says transport minister


Source: TheEdge - 10 Aug 2023

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