Green light for KLIA Aeropolis, DFTZ projects

The development of the Digital Trade Zone (DFTZ) at the Kuala Lumpur International Airport (KLIA) is expected to proceed as originally scheduled without any change.

Malaysia Airports Holdings Bhd (MAHB) MD Datuk Mohd Badlisham Ghazali said there is no order or announcement by the new government regarding any change for the project.

“There seems to be no issue or the possibility of the project being scrapped, so far,” he told reporters after meeting the Council of Eminent Persons in Ilham Tower yesterday.

He said an earlier meeting with Transport Minister Anthony Loke Siew Fook last week also had a positive impression.

“I have given a briefing to the transport minister last week, I told him that this (DFTZ) is a deal between two private companies, and that there was not much involvement from the previous government.

“There were only a little involvement, but most of it were equity investment by MAHB and Alibaba Group Holding Ltd,” Mohd Badlisham claimed.

He added that the minister is currently being updated on the aviation industry and wanted to study the project further.

“As far as we are concerned, that project is still ongoing,” he said.

He added that MAHB will continue to attract aviation investors, and is looking at securing more deals and investors through the upcoming Farnborough International Airshow in July.

KLIA Aeropolis, the air logistics hub which has been incorporated into the DFTZ, is dubbed the world’s first e-world trade .

It will be built on a 404.7ha site surrounding KLIA and was launched in 2016. It is expected to attract about RM7 billion in foreign and domestic investments.

MAHB’s wholly owned subsidiary, MA eLogistics Sdn Bhd, had in November last year formed a joint venture (JV) with Cainiao Smart Logistics Network (Hong Kong) Ltd (Cainiao HK) to develop a regional e-commerce and logistics hub in KLIA Aeropolis.

Cainiao HK owns a 70% stake in the JV, which will be named Cainiao KLIA Aeropolis Sdn Bhd, while MA eLogistics owns the remaining 30%.

The JV’s issued and paid up capital is RM206.67 million.

Cainiao HK is a wholly owned subsidiary of Cainiao Smart Logistics Network (BVI) Ltd, which is in turn wholly owned by Cainiao Smart Logistics Network Ltd (Cainiao Cayman).

Cainiao Cayman is an affiliate of Alibaba Group.

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