WCT to work with MAHB on RM1.3bil Subang Airport regeneration

KUALA LUMPUR: WCT Holdings Bhd will work with Malaysia Airports Holdings Bhd (MAHB) to revamp the Sultan Abdul Aziz Shah Airport (Subang Airport) in Subang Jaya, Selangor, at a cost of RM1.5 billion over three years.

Public Investment Bank Bhd (PublicInvest) disclosed this today following its recent meeting with WCT's management.

"We are enthusiastic over positive developments within the (WCT) group, including the much-anticipated Subang airport regeneration project. 

"Assuming a 70 per cent stake in the joint venture, this project will add about RM1.1 billion to its current order book, making up 70 per cent of our financial year 2023 (FY23) order book replenishment assumption," it said.

PublicInvest said works would be carried out in two phases, beginning with Terminal 2 followed by Terminal 3. Both terminals will be demolished and rebuilt to accommodate roughly three million passengers.

"All in all, we anticipate an official announcement regarding this project to be divulged soon, before the end of 2QFY23," it added.

Considering a high single-digit margin, the project is expected to contribute RM28 million on average to WCT group's bottom line in FY2024 to FY2026.

MAHB released its Subang Airport Regeneration concept master plan in April 2021, which included rebuilding the ageing airport into a city airport capable of serving around five million passengers per year.

Plans to reconstruct the airport stagnated when WCT presented a rival proposal to the government just a month earlier.

The proposed redevelopment was further delayed by the December change in administration, which saw former transport minister Datuk Seri Dr Wee Ka Siong replaced by Anthony Loke Siew Fook.

On Feb 6 this year, Loke said the cabinet had approved the Subang Airport Regeneration Plan and that MAHB had been chosen to oversee the airport's redevelopment.

Loke said the actual business plan would be finished by MAHB and submitted to the transport ministry before being re-tabled to the cabinet for approval.

He also reportedly confirmed that WCT's proposal was no longer being considered.

"The Subang Airport Regeneration plan was drawn up by MAHB, so MAHB will lead in terms of the entire master plan. And whichever party MAHB wants to work with, that is entirely up to them," he said at an event in Feb.

WCT now runs the SkyPark Terminal through its subsidiary Subang Skypark Sdn Bhd (SSSB) under a 30-year sublease concession deal with MAHB that expires in December 2037, with an option to extend for another 29 years.

The property and construction group proposed redeveloping Subang Airport into a city airport, similar to MAHB, with 7.5 million passengers per year for RM3.7 billion over 10 years.

It also requested the right to directly operate Subang airport and the surrounding federal land for 50 years under a new concession agreement with the government.

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