PUTRAJAYA, Feb 9 — The Malaysian government has agreed in principle to rebrand the Kuala Lumpur International Airport (KLIA) and Kuala Lumpur International Airport 2 (KLIA2) to KLIA Terminal 1 and KLIA Terminal 2 respectively.

Transport minister Anthony Loke said the rebranding proposal followed a Cabinet meeting last week, noting the exercise aimed at improving their marketability, value and effectiveness while strengthening competition with other regional international airports.

"The proposal to rebrand KLIA and KLIA2 are important for the commercial sustainability of KLIA and also the growth of airports throughout the country.

"It is not immediate since the rebranding is part of a new Operating Agreement (OA 2023) between the Malaysian government and Malaysia Airports Holdings Berhad (MAHB).

"The government and MAHB will finalise and sign the OA 2023 and related Lease Agreements before the end of the first quarter of 2023 (March 31),” he told a press conference at the Transport Ministry here.

Loke explained that once the OA 2023 is signed, it would be up to MAHB to embark on the proposed rebranding.

Explaining further, Loke said the rebranding would indeed take time since there were also administrative matters to be sorted out with relevant authorities that include the International Civil Aviation Organisation and the International Air Transport Association (IATA).

"Of course right now, this is a principal decision agreed by the Cabinet.

"Today I am making this announcement so that the public and investors know the direction of the government as far as airport development is concerned," he said.

Earlier, Loke had announced the government's agreement in principle to a new Operating Agreement (OA 2023) between MAHB.

Under OA 2023, the new material terms will see MAHB operate, manage, maintain and develop 39 airports and airfields (Short Take-Off and Landing Airports, or STOLports) in Malaysia for the period until 2069.