New KIA could generate RM1.8 billion annually, create 38,000 jobs

THE proposed New Kuching International Airport (NKIA) at Tanjung Embang could contribute RM1.8 billion annually to Sarawak’s gross domestic product (GDP) by 2050 and support nearly 38,000 jobs, according to a completed feasibility study.

Transport Minister, Datuk Seri Lee Kim Shin said the study projected that the airport could support approximately 37,919 full-time equivalent jobs across the wider economy under a high-growth scenario.

“NKIA has the potential to create wider opportunities in tourism, aviation services and supporting industries such as air cargoes, aircraft Maintenance, Repair and Overhaul (MRO), aircraft parts manufacturing as well as the development of aerotropolis.

“The study also projects that increased passenger traffic could generate RM3.99 billion in tourism receipts by 2050 and these benefits could attract new investments, strengthen local businesses, create employment opportunities and stimulate economic growth across Sarawak.

“We must plan not merely for the needs of today or just the next few years, but for the Sarawak of the next 25 to 50 years,” he said.

Lee said this during his ministerial winding-up speech at the State Legislative Assembly (DUN) sitting today, in response to the Padungan assemblyman’s call for the Sarawak government to abandon NKIA and other major strategic infrastructure projects due to their high development costs.

Lee described the call as short-sighted, citing the development of Kuala Lumpur International Airport (KLIA), which DAP veteran leader Tan Sri Lim Kit Siang had previously criticised as a financial burden and a “white elephant”.

“Can you imagine what will happen today if KLIA was not developed and we stick to Subang Airport like what he proposed?” he said, adding that KLIA now handles 63.3 million passengers annually.

He also questioned why Sarawak’s proposed airport should be opposed on cost grounds when the Penang government had pursued the multi-billion-ringgit Penang South Islands reclamation project and the Mutiara Line Light Rail Transit project, which has a budget ceiling of RM16.8 billion.

“If these projects can be justified as long-term investments for Penang, why should the New Kuching International Airport not be regarded as a long-term investment for Sarawak?

“Sarawak must not be denied the same right to develop, modernise and prosper as other states in Malaysia,” he added.

Lee said Sarawak’s vast geographical distances, growing economic activities and communities that depend on air connectivity made long-term aviation infrastructure planning necessary.

He added that upgrading the existing Kuching International Airport with a few hundred million ringgit might not address its limitations in runway capacity, aircraft movements, airside infrastructure, cargo facilities, aircraft maintenance facilities and future expansion due to limited land.

The airport’s location within the city also limits the development of high-rise buildings in surrounding areas, he said.

Lee said NKIA was intended to serve as a strategic gateway for tourism, international trade, investment, air cargo and aviation services, while supporting Sarawak’s future economic growth.