By Chester Tay From The Edge Markets

KUALA LUMPUR (June 11): Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Badlisham Ghazali said the new government led by Tun Dr Mahathir Mohamad “doesn’t seem” to be opposing the Digital Free Trade Zone (DFTZ) within the KLIA Aeropolis.

Speaking to reporters after meeting the Council of Eminent Persons today, Badlisham said this was the impression he got after briefing Transport Minister Anthony Loke Siew Fook last week.

“I have given a briefing to the Transport Minister last week, I told him that this (DFTZ) is a deal between two private companies, and not so much of involvement from the government, although there were a little, but most of it are equity investment by us MAHB and Alibaba.

“The Minister is getting an update of the aviation industry right now and he is aware of all those things, and [there] doesn’t seem to be any objections (on DFTZ), but they want to study the project, by his officials and then he will let us know. As far as we are concerned, that project is still ongoing,” he said.

“Aeropolis is a larger tract of land for MAHB to develop that is still ongoing, where we have made commitment to either have another outlet park or mall, or even logistical warehouse for cargo. We will continue to attract aviation investors, and God willing, we could secure more deals and investors through the upcoming Farnborough International Airshow in July,” he added.

MAHB’s wholly-owned subsidiary MA eLogistics Sdn Bhd had in November last year formed a joint venture (JV) with Cainiao Smart Logistics Network (Hong Kong) Ltd (Cainiao HK) to develop a regional e-commerce and logistics hub in KLIA Aeropolis.

Cainiao HK owns a 70% stake in the JV, which will be named Cainiao KLIA Aeropolis Sdn Bhd, while MA eLogistics owns the remaining 30%. The JV’s issued and paid up capital is RM206.67 million.

Cainiao HK is a wholly-owned subsidiary of Cainiao Smart Logistics Network (BVI) Ltd, which is in turn wholly owned by Cainiao Smart Logistics Network Ltd (Cainiao Cayman). Cainiao Cayman is an affiliate of Alibaba Group Holding Ltd.

For more on this story go to: https://www.theedgemarkets.com/article/new-govt-doesnt-seem-oppose-dftz-says-mahbs-badlisham

IMAGE: The Edge Markets