AIRPORT CITIES 2014 DAY 1 Tan Sri Bashir Ahmad, Managing Director, Malaysia Airports Holding Berhad

1. KLIA AEROPOLIS
1 April 2014

2.  Malaysia Airports is one of the world’s largest private sector airport operators, managing
39 airports in Malaysia and having investments in airports in several other countries
(currently in India and Turkey, and previously including Maldives, Kazakhstan and
Cambodia)
 Consistently won awards for service quality of airports
 One of the more profitable Government Linked Companies on Bursa Malaysia
 Market capitalisation of over RM10.9 billion / USD 3.3 billion (as of 28th March 2014)
Malaysia Airports
Background

3.  Malaysia Airports is the concession holder of KL International Airport (KLIA) and the
lease holder of the airport lands
 In 2013, Malaysia Airports served over 79 million passengers, where KLIA served about
47 million passengers (19.1% growth YoY)
 A total of 63 airlines operates out of KLIA serving more than 100 destinations
 KLIA is ranked 20th busiest airport in the world for 2013
Malaysia Airports
KLIA Connectivity

4. In the early 1990’s, the Government of Malaysia made a brave and highly astute move to locate KLIA in a
greenfield development of nearly 100 square kilometres, located about 60 kilometres from the city
centre.
KLIA was opened in 1998 with a speed train from inside the terminal that connects it directly to the city
centre’s integrated multi-modal transport hub to ensure connectivity to KL’s long-term, greenfield airport
was not compromised.
Fifteen years and 20 million more passengers later, KLIA has matured just in time to begin developing
6,750 acres of developable land around the airport into a standalone airport city, known as KLIA
Aeropolis.
Today, Malaysia Airports is afforded the responsibility to ensure that this highly lucrative location is
optimised to maximise Malaysia’s unique position as a regional if not global leader of a leading shopping
destination; a Muslim-friendly tourism destination and thus by extension potentially the most family-
friendly tourism destination; and a leading logistics and business hub.
This would potentially propel the KLIA Aeropolis into a destination in its own right.
KLIA Aeropolis
Background

5. Huge Land
Bank
• 22,156 acres of land at KLIA with 6,000 acres already developed
• 6,750 acres approved for landside commercial development
• 25 years land lease tenure – approval for up to 60 years on a case-to-case basis
• Trending towards KLIA and its surrounding Putrajaya, Cyberjaya, Science Park,
Sepang Gold Coast, etc.)
• Growing demand
• Passengers and “meeters & greeters”
• Extensive yet still growing terminal-linked activities
• Over 22,000 airport workforce (direct and indirect)
• Existing and new residents just outside the Aeropolis border
• Airport creates significant employment, shopping, trading and new business
destinations
• Multi-modal transportation hub within/linked to the airport terminals
• Network of modern, up to eight-lane highways
• Speed train connects the city centre to the terminal in 28 minutes
• Good connectivity via coaches and taxis
Surrounding
Development
Catchment
at Airport
Community
Airport’s
Accessibility
KLIA Aeropolis
Opportunities

6. KLIA Aeropolis
Development Challenges
 Economic:
• Short land lease tenure
• Infrastructure development/ funding
 Geographical:
• Greenfield Location
• Maturity of surrounding development,
given that KLIA is located some 60 km
from the city center
 Regulatory:
• No residential development
• Land for lease only
 Economic:
• Case by case basis to allow for longer
concession by the Gov’t;
• Currently reviewing alternative
approaches to co funding/investments
 : Geographical:
• Focused on airport and related facilities/
infra development
• Palm oil plantation – a most profitable
interim land use measure
• Catalyst projects – Gateway@klia2;
MOP KLIA
 Regulatory:
• Aligning ‘incentives’ with regulators/Gov’t
• Crucial to partner with credible
developer/operators
Challenges Mitigation

7. Malaysia Airports New Vision:
‘To be the
Global Leader in
Creating Airport Cities’
moving forward…

8. Our new vision of becoming the Global Leader in creating Airport Cities is centred on our competitive
advantages:
1.Available land bank, resultant from Government’s foresight.
2.Strong travel and robust tourism market.
3.Strong home base carriers that support the airport business.
4.Competitive price structure - our airports offer the best value in the region.
5.Management leadership/expertise - successfully positioned KLIA for growth in the face of traditionally
strong competitors - Bangkok (strong leisure destination) and Singapore (financial hub) by:
(i) Establishing strategies to support low-fare travel at the time it was untested in Asia; and
(ii) Timely investments in terminal and airside capacity and infrastructure.
• KLIA is now the only airport in South East Asia region to boast three independent runways.
• klia2 being designed as a "future-proof" terminal to cater to all variants of LCC models and
robust pax growth.
6.Stable socio-economic and political environment in Malaysia.
8
Malaysia Airports New Vision
Leveraging On Our Competitive Advantages

9. ‘To be the Global Leader in Creating Airport Cities’Vision
Strategy Themes
Delight Our
Guests
Provide Total
Transport & Digital
Connectivity
Build
Successful
Partnerships
Sustain Our
Environment and
Community
Accelerate and
Diversify Our
Non-Aero Base
9
Malaysia Airports New Vision
Vision to Strategy Map

10. Category Land Size
Cargo / Logistics Park 300+ acres
Office Suites & Serviced
suites, Hostels
100+ acres
Hospitality, MICE 200+ acres
Theme Park 500+ acres
Institutions 300+ acres
10
Malaysia Airports New Vision
Development Highlights

11. Thank You