KUALA LUMPUR, Nov 13 — The Cabinet has approved the proposed RM442.30 million upgrade for the Kota Kinabalu International Airport (KKIA) by Malaysia Airports Holdings Berhad (MAHB), said Transport Minister Anthony Loke.

He said that the proposal was approved on Nov 8.

Loke said that the project was expected to take 48 months, with the pre-construction phase beginning this year and completion set for 2027.

"The project is fully funded by MAHB through a private financing initiative with no government guarantees involved,” he told a press conference at the Parliament building today.

Loke said that the project involved expanding the terminal’s capacity from nine million to 12 million passengers per year, as well as the construction of new facilities such as a multi-storey car park and seven additional aprons (parking spaces for aircraft).

According to him, the project also included infrastructure improvements such as upgrading roads around the airport, adopting green technology, and integrating advanced technology and automation with Airport 4.0 Technology to boost operational efficiency.

Loke stated that KKIA, Malaysia’s second busiest airport after Kuala Lumpur International Airport (KLIA), recorded 9.4 million passengers in 2019, exceeding its capacity.

He said that despite a drop in passengers in 2020 and 2021 due to the COVID-19 pandemic, the number increased to seven million in 2023.

"Based on projections, this number is expected to increase to 12.4 passengers per annum by 2034. As of October 2024, KKIA has recorded a total of 6.6 million passengers, an increase of 13.4 per cent compared to the same period in 2023,” he said.

Loke said that the KKIA upgrading project was part of the government’s commitment to ensuring that infrastructure in Sabah meets both current needs and future demands.

"I am confident that this investment will not only generate returns for MAHB but will also open up opportunities and bring prosperity to the people of Sabah and the nation,” he said. — Bernama