IPOH: The Transport Ministry will adopt the public-private partnership (PPP) method to upgrade airports in the country that are considered less competitive.
Its minister, Anthony Loke said that he had discussed with Malaysia Airports Holdings Berhad (MAHB) as the largest airport operator in the country to look at the joint venture method, given the country's financial constraints.
Loke added that the method used before was not economical, especially for airports that did not have many flights.
"I have discussed with MAHB to look at this joint venture or PPP model, they (MAHB) can also with work other private companies and of course, there are terms and conditions.
"With the country's financial constraints, we need to find a new method which is this PPP. They might have ideas or ways to upgrade the airport.
"Investment in the airport has a return. First of all, every airport has a service charge for each passenger, so if the airport is competitive, it could get many passengers," he said.
Loke who is also DAP secretary-general said this in a press conference after opening the 22nd Perak DAP Convention at Kinta Riverfront Hotel here, today.
A PPP is a contractual agreement between the private and public sector that allows for greater private participation in the delivery of projects.
When asked about the upgrading works of the Sultan Azlan Shah Airport (LTSAS) terminal here, Loke said he has received the application from the state government on the proposal to upgrade the airport.
Loke added that there was interest from the private sector in PPP for LTSAS but any proposals or suggestions must get approval from the MAHB.
"LTSAS is one of the airports where I have received letters from them (private companies) expressing their interest to operate or invest in this airport.
"This is something that is on our radar, we will ensure that this project will be realised. Previously the state government proposed to have a new airport in Seri Iskandar, but this hasn't materialised yet.
"The construction of a new airport will take a long time. First, it needs to be discussed with the National Physical Planning Council (NPPC). If the NPPC does not give the green light, no procedure can proceed," he said.
On the high demand for direct flights from Singapore to Ipoh, Loke said he has discussed with the Singapore Airlines Group's low-cost airline, Scoot to add more flights from the republic to Ipoh, especially during the festive season.
"Right now Scoot is flying three times per day from Changi Airport to LTSAS and the flights are always full.
"I have told them that flight tickets to Singapore are in high demand, especially during the weekend and festive season, and the current flight frequency is not enough to cater for it.
"Should we receive more international flights to Ipoh, of course, it will boost the state government's economy and we hope this effort will realise," he said.