New Kuching International Airport (NKIA) and the RM1.8 billion contribution to Sarawak’s GDP

New Kuching International Airport (NKIA) and the RM1.8 billion contribution to Sarawak’s GDP

If you ask me, my reasoning why Ipoh is a poor cousin to both Penang and Kuala Lumpur is because both of these places have international airports and Ipoh happened to be right in the middle. There are advantages to be in the middle of two major international airports of course but perhaps Ipoh can also do more to attract some of the international visitors to visit Ipoh too. Something like visit Penang or Kuala Lumpur, get Ipoh as added advantage.

At the same time, lying in the middle also meant that there’s little chance for Ipoh to also have its own international airport because it’s just too close and it will then be a competition to both Penang and Kuala Lumpur which is not a clever infrastructure move. So, naturally when I read that another city in Malaysia has a proposal for a new international airport, I am fully supportive of it.

Article in malaymail.com The proposed New Kuching International Airport (NKIA) at Tanjung Embang could contribute RM1.8 billion annually to Sarawak’s GDP by 2050, under a high-growth scenario, according to a feasibility study by Netherlands Airport Consultants (NACO).

Key projected benefits include:

• 37,919 jobs supported across the wider economy.
• Around 9,393 jobs annually during Phase One’s projected six-year construction period.
• RM3.99 billion in tourism receipts by 2050, driven by increased passenger traffic.
• New business opportunities in tourism, air cargo, aircraft maintenance and repair, aircraft parts manufacturing, and aviation-related development.
• Potential to attract investment, strengthen local businesses and stimulate economic growth across Sarawak.

The feasibility study concluded that Tanjung Embang is technically and operationally suitable for the proposed airport. These figures are projections, however, and the actual benefits will depend on implementation and future demand. Read the full article here: Article in malaymail.com

My view about why the benefits extend beyond the airport itself?

An international airport is more than a place where planes take off and land. When it is successful, its benefits can extend well beyond the airport itself. Imagine just 100,000 people flying into the city every month… 1.2 million passengers annually is still a small number yeah. Penang has 8.3 million last year while Kuala Lumpur had 63.3 million. 100,000 people visiting meant at least a demand for 50,000 hotel rooms. It meant 300,000 meals needed for that month alone, without including supper… I think you get my picture.

1. More tourism, more spending. Better air connectivity makes it easier for visitors to arrive. Hotels, restaurants, tour operators, retailers and local attractions can all benefit from increased visitor spending.

2. More jobs and business opportunities. Beyond construction and airport operations, better connectivity can support logistics, aviation services, trade and other businesses. This can create employment opportunities for people living in surrounding areas.

3. Wider economic growth and property opportunities. As businesses expand and more people travel or work in the region, demand for commercial space, accommodation and supporting services may increase. The benefits can spread to nearby towns and other parts of Sarawak.

Of course, building an airport alone does not guarantee success. Connectivity, passenger demand, supporting infrastructure and sound implementation all matter.

For Sarawak, the opportunity is to turn improved connectivity into lasting economic benefits for local communities.

All the best Kuching! I support you!

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