30/11/2023 (Kedah, Malaysia) - KXP AirportCity Holding has entered into a collaborative agreement with Tahira Air Sdn Bhd to establish a new Special Purpose Vehicle (SPV) for the development of the Kedah Aerotropolis project. This announcement was made by Kedah’s Chief Minister, Datuk Seri Muhammad Sanusi Md Nor, who emphasized that Tahira Air is not the sole entity developing the Kulim International Airport (KXP), a key component of the Kedah Aerotropolis.
Addressing concerns about Tahira Air's capacity, Muhammad Sanusi clarified, “Although some may question the company's capabilities due to its RM2 million paid-up capital, it’s important to note that the company operates primarily in China, handling hundreds of tons of cargo annually, despite having an office in Malaysia."
This statement was part of his speech at the Dewan Undangan Negeri (DUN) session at Wisma Darul Aman. The issue was raised by Teh Swee Leong (PH-Kota Darul Aman) during a previous DUN session, questioning the state government's decision to collaborate with Tahira Air given its relatively low paid-up capital.
Muhammad Sanusi had earlier mentioned the cancellation of an agreement with a previous SPV company due to its failure to deposit RM2.5 billion, which is 125% of the estimated land acquisition cost for the KXP project.
In a related development, the Chief Minister reported to the DUN that the state government is optimistic about reaching its revenue target of RM600 million this year, a slight increase from RM596 million in 2022. As of the current date, with one month remaining, state revenue collection stands at RM579.3 million.