KUALA LUMPUR (Jan 5): Malaysia Airports Holdings Bhd's (MAHB) 39 airports in Malaysia are expected to see a lower passenger traffic growth of 6.5% for 2018, due to lower traffic volume from the domestic sector.

At a press conference today on MAHB's business update and 2018 outlook, its managing director Datuk Badlisham Ghazali said this is because there will be more airlines launching direct flights to other international airports in Malaysia, aside from KLIA, hence volume for inter-airports travel locally will be reduced.

"International sector, we think there will be higher growth, because more airlines are coming in and that will bring in more international volume," Badlisham added.

In a statement today, MAHB said its 39 airports in Malaysia had seen a total traffic of 96.5 million passengers in 2017, which was 8.5% higher than 2016.

MAHB said improvement was supported by the international sector, which averaged at an 8.5% growth as well, as compared to the domestic sector growth of 6.5% over the same period.

Meanwhile, the KLIA terminal in Sepang saw a 12.7% growth in 2017 to 43.3 million passengers.

Badlisham said 20l7 was a productive year, where the group made significant headway in its delivery of initiatives that will position Malaysia as a preferred hub for the aviation industry and as a destination for high-value businesses.

"This includes high-tech or precision aerospace businesses and those within the digital economy. Our highlights for the year include the launch of the world’s first Digital Free Trade Zone (DFTZ) in KLlA Aeropolis, broadening connectivity of our network of airports with landside improvements, as well as services and facilities upgrades. The efforts are intended to improve overall experiences at our airports in terms of comfort and convenience, such as improving the transfers process, shortening waiting times, and minimising congestion to create a pleasant travel experience," Badlisham added.

He said the group will be focused on ramping up initiatives around airside connectivity development at KLIA and its regional international airports in 2018. 

"This will be a primary driver for attracting more airlines to our airports and building out our routes. With all the plans in place to drive higher traffic through our airports, capacity optimisation and expansion will be necessary," he added. 

Therefore, Badlisham said MAHB will be investing in automation to relieve some of its capacity issues, as well as in overhauling of its ageing assets.

"Big Data Analytics and Digitalisation (BDA) will be a primary thrust in 2018. Through BDA, we will be able to capture in-depth data and information on functions within the airports and customer promos. The information captured is intended to provide greater insights to accurately measure airport performances and provide point-to-point passenger journey navigation," he added.

"There is a lot to be done" with MAHB, said Badlisham, noting that some of its plans for 2018 are already in feasibility and master planning stages, especially the ones under its KLIA Aeropolis development.

"We have also submitted proposals for the facilities upgrade and refurbishment of six airports/STOL ports in Malaysia. New projects announced under Budget 2018 such as the new Mukah Airport, expansion of the Kota Baru and Sandakan airports, upgrade of Penang and Langkawi airports, and the study of a new airport at Pulau Tioman are expected to come onstream later this year," he added.

At midday break, MAHB shares slipped 0.46% or 4 sen to RM8.74 with 509,900 shares traded.