Miscellaneous / Socio-economy

New LCCT terminal in Sepang

Last month, I read this news and had waited till Najib became the PM just to post this piece. I am sure now the new administration is able to answer this niggling issue better. News from Utusan Malaysia last month:

Kos LCCT baru dijangka RM2 bilion – Najib

KUALA LUMPUR 10 Mac – Pembinaan Terminal Penerbangan Tambang Murah (LCCT) yang baru di Sepang dijangka menelan belanja sebanyak RM2 bilion.

Menteri Kewangan, Datuk Seri Najib Tun Razak berkata, projek itu merupakan sebahagian daripada projek yang telah dikenal pasti oleh kerajaan untuk dilaksanakan di luar peruntukan bajet (off-budget) bernilai RM5 bilion.

Beliau yang juga Timbalan Perdana Menteri berkata, selain pembinaan LCCT itu, kerajaan akan melakukan pembesaran lapangan terbang Pulau Pinang bernilai RM250 juta.

Najib berkata demikian ketika membentangkan pakej rangsangan kedua dalam bajet mini di sini hari ini.

Selain itu, tambah beliau, pelaburan berjumlah RM2.4 bilion oleh Suruhanjaya Komunikasi dan Multimedia Malaysia akan membabitkan pelaksanaan projek peningkatan infrastruktur telekomunikasi, termasuk perpustakaan jalur lebar, Pusat Jalur Lebar Komuniti serta penyediaan telefoni asas di 89 buah daerah di kawasan luar bandar.

”Ia juga melibatkan pembinaan jejantas dan laluan berbumbung antara bangunan terutamanya di kawasan Segi Tiga Emas, di sini dengan kos sebanyak RM100 juta,” katanya.

I guess I did not get the memo on this one. RM2 billion to build a new terminal in LCCT Sepang? That is even more expensive than building a whole new LCCT in Labu (at RM1.6 billion)! I thought one of the reasons why the Labu project was shelved is because it was too expensive.

To those who are responsible, please state the cost details as the public (well, at least this blog) want to know the reasons why would this terminal be more costlier to build than the one in Labu.

Could it be;

1) As a form of concession to Air Asia for the shelved Labu project?

2) Somebody marked up the price exorbitantly?

3) A retirement gift for someone?

4) The then EPU Minister and the then Minister of Finance II did not know how to count?

5) A typo?

6) The new terminal will be even bigger than the whole Labu airport?

7) The RM2 billion consist of other smaller projects?

8 ) The cost to build the LCCT in Labu will actually cost more if it was given the green light to be built?

9) Another misreporting by a mainstream newspaper?

These are the questions that will be asked by ordinary Malaysians. No rocket science there. Please prepare some viable and logical answers. I am sure it is not hard to do.

People first. Performance now.

Goodnight everyone.

20 thoughts on “New LCCT terminal in Sepang

  1. Being inside the construction industry, the government should cap it below 1billion, first to be seen as prudent and sensibly cheaper than Labu. Plus, its only for budget ailrline so the building must reflect this. One do not board a budget airplane from 5 star facility.

    It is up to the developer to work the scheme backwards from the given budget.

    It is a bit strange to come up with a cost without proper working paper or tangible proposal being drawn. If there is, it should be thrown out and revised to be more cost effective.


  2. Buat platform minyak atas laut pun tk smpi 2bil, ni kan plak buat kerja atas darat, i wonder if the cost estimation exercise was properly done


  3. Bro Blues

    Perhaps $1.6 billion was rounded up to $2 billion as PM’s and non-accountants often wont to do.

    Remember the expensive bid of $2.3 bil for 12 new Euro Cockermamie-Spaniel Heli 725 which was then stated at $1.3 billion, the rounded up to $1.63 billion (by AAB)? I think OSA is involved and they want to confuse our enemies, especially the Singaporeans.

    What is also important is whether an open tender was called for, who was finally awarded the contract and whether the lowest bid was accepted and if not, why not.

    The we’ll get to stage two and ask if the company awarded the contract is local or foreign or the usual WIN0WIN situation (20% local: 80% foreign) where the local party will only handle ‘liaison and administrative’ functions. That may explain why $1.6 billion became $$2 billion, since the additional $400 million ‘gaji buta’ is exactly 20% of $2 billion !!

    Or am I just being my old cynical self? Lol!


    • Donplaypuks,

      It is unfortunate that the planned purchase of EC 725 didnt take place because of politics.

      The Nuri needed to be replaced and I was quite happy that the Government of Malaysia made a wise choice in picking a very impressive medium lift helicopter as opposed to the Mi17s being offered. With Eurocopter’s investment in MRO facilities in Subang, the thorny maintainance issue would have been addressed.

      There were some comparisons made between Brazil’s purchase of the same type of helo at a much lower price than Malaysia’s. Specifications, avionics, armaments affects the pricing per unit of each helicopters.

      Recently the French which produces the EC 725 bought 5 of the helicopters at about RM 1 over billion. We were supposed to buy 12 at the price of RM1.6 billion.

      The Malaysian Government opened an international tender and apart from the French, if I am not mistaken, the Americans offered their Sikorsky, the Russians through Rosoboronexport offered their Mi-17v and a Malaysian company partnering some Canadian company also offered their version of the Russian’s Mi-17.

      The Malaysian company came up with the lowest bid and when his tender was not accepted, he quit UMNO and joined PAS ! The person who owned the company used to be in TUDM but i cannot remember his name nor that of his company.

      The EC 725 was flight tested by TUDM during LIMA 2007. Although the Malaysian Govt calls it a combat search and rescue, the EC 725 has a good pedigree of being a good tactical combat helicopter. The French uses it for their Special Forces.

      Taking into account the Governemnt’s purchase of light utility helicopters such as the Agusta Westland’s AW101 for the army’s usage and considering the non existent air wing specially dedicated to special forces, TUDM would envisage that the planned use will also encompass missions by the special forces, thus the decision for a advanced spec medium lift helo that cost a bomb.

      Some might argue why buy advanced jet, advanced sub and advanced helicopters, who are we going to fight ? We can never beat US or China ? It is a difficult to make an objective threat assessment in times of peace, but peace as we know it is fragile. If every nation on planet earth that plans to arm their tri services do so in relation to how would they do in case of war with those 2 countries, most countries in the world would either not arm their tri services or decide to just get a few nuclear missiles for deterrent purposes, like what Pakistan, Iran, Syria and North Korea does.

      Sometime last year we had the Ambalat crisis, Indonesia sent several of their Van Speijk class frigates and their F-16s harassing Malaysian missile boats. We knew very well that in such an isolated conflict in Ambalat, their frigates are no match for our Lekiu class frigates and our F18s. The matter ended pacefully thankfully. A few years back some hyper nationalist senator from the Phillipines suggested they forcefully take Sabah back and he had to be told that on account of their decrepit assets, their forces will be slaughtered by us.

      We may have tense relations with Singapore today and a relatively peaceful relationship with Thailand, tomorrow might be different.

      Before the Falklands war, Britain was planning to scale down their armed forces on account of economic crisis, the Argentinians wrongly calculated British naval neglect of Falklands was a sign that Britain was ready to concede the tiny insignificant island. The Argentinians invaded and that proved costly. Realising the fragility of peace and realising that when needed the US didnt support them, the British after the war scrapped their plan to reduce the size of their armed forces.

      We decide to arm our soliders, the least we can do is to make sure they have a fighting chance of survival in case of conflict.


      Lari sikit dari topik. I am just sad that our soldiers are not getting a replacement for the Nuris because of politics.


  4. Bro JMD,.. wats all dis dat d ‘Whisperers’ r saying on a collaboration between DSN & PLah b4 d power transition took place,..heheh… any comment,.. n wat of d Seven Clans Assoc. dats supposedly backing up bro AnWar,.. any truth on it,.. dun noe wats gonna happen to our country,..heheh,..wat else can I say,..(“,)

    p.s. wat next?!
    p.s.s. give me a buzz if ur in Tmn Tun area,..heheh,.. a cuppa at Makbul wud b gud bro,..


  5. by right it should not be more than the labu’s lcct as it do not require new runaways.
    you are right, the public want to know the details.


  6. Dear Jebat (Jebat is more heroic than Tuah!)

    I checked with a friend who knows about this.

    He said that this $2b allocation is off budget fund from MOF to MAB.

    Also, he said that check on size of the LCCT and the scope of work, as well as the capacity of handling. Then can make informed conclusion.



  7. well,,,lets wait for the right person to answer.And make sure they answer to the people.perhaps they have extra other planning. jangan teka teka…..


  8. Dont you all see now, why Tony was all for building one new terminal in Labu?

    He knew that if it was done at KLIA, it would be ‘costed’ more expensive than the Labu project but would not be meeting AirAsia’s expectations as well?

    Why should this ‘cost increase’ be the norm in our ailing economy?

    Some ‘unkind’ one still trying to milk the rakyat further?

    No wonder Pakatan guys get so much fodder delivered in a silver plate for them to use till next general elections1

    keep it up BN. you will never change.


  9. memangle lagi mahal… nak bayar kroni pak lah apa…

    sbb tu le dia up skit rm400 juta.

    kontraktor sama yg buat lcct lama dulu..

    cuba tanya kalimullah.. dia kan shareholder kontraktor tu


  10. Salam JMD,
    It is good that you are now using your talents to make sure Najib spends the rakyat’s money wisely.

    But I doubt you get straight and sincere answer from Najib!!So much at stake, and so many promises have been made by Najib.

    Please JMD perservere in your struggle though you are hitting your head against the wall.

    Hang Kasturi


  11. whoa! why r u criticising najib? are you not his paid stooge???

    JMD : Really? I didn’t realise I was his paid stooge. Need to recheck my bank account. Someone must have given him the wrong account number! 🙂


  12. let’s wait and see the wayang sandiwara !!! it’s still too early to conclude ……

    is this under ong tee keat’s jurisdiction?

    JMD : Many parties are involved in this, OTK included.


    • if otk is involved, i hope he, kong choy and liong sik will be imprisoned up to the max allowed in the law.

      and other party members who are involved too !!!

      on this matter, i have no mercy on this MCA party …. i don’t care whether they are chinese or shouting that they represent the chinese…i just want their ass to be in sg. buloh prison …..


  13. Dear JMD,

    “I guess I did not get the memo on this one”

    Care to elaborate?


    JMD : Nothing to elaborate my friend,.. just the usual quip I say whenever I miss something 🙂


  14. Pingback: LCCT Part 2 « Asian Correspondent

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