KUALA LUMPUR, Feb 24 — Putrajaya has scrapped plans to build a new airport in Kulim and will instead develop and renovate the airports in Penang and Subang.

Prime Minister Datuk Seri Anwar Ibrahim outlined this strategy in Budget 2023 where he said the development project for these two airports will be spearheaded by Malaysia Airports Holdings Bhd (MAHB).

"In order to attract more foreign investors, businesses and tourists, the government decided to expand and upgrade the facilities at Subang Airport and Penang International Airport.

"MAHB will handle this project which we expect will benefit the country’s economy at a cost that is lower compared to building a new airport in Kulim which was estimated to cost us RM7 billion,” he said during the tabling of Budget 2023 from Parliament today.

The Kulim airport was mooted several years ago to increase the volume of tourists and create another international airport in Kedah.

On August 2021, the Kedah government signed a joint venture agreement with ECK Group to build the Kulim International Airport (KXP).

A year later, however, there was still no agreement and no approval from the Transport Ministry regarding its development.