Malaysia’s Kulim Airport (KXP) greenfield project remains at an early planning stage with completion not expected until 2026. The cost of the development is estimated by local media at 6 billion Malaysian Ringgit (about $1.35 billion) which includes the cost of land acquisitions.

Kulim is a district and town in the state of Kedah, Malaysia in the northwest of the country. Kedah—known as the rice bowl of Malaysia—borders Penang state whose island capital of George Town is popular with tourists.

By car, the town of Kulim is about 40km from Penang’s capital city, and the planned airport to the north of Kulim in nearby Sungai Petani would compete, to a degree, with Penang International Airport which is situated to the south of Penang Island.

Despite its island location, Penang International was the third busiest airport in the country after those serving Kuala Lumpur, which is a five-hour drive south, and Kota Kinabalu. The main appeal of an airport in Kulim would be less about its international tourism possibilities and more to serve Greater Penang which is Malaysia’s third largest conurbation with a population of more than 1.6 million (based on a 2020 population census).

Many of the residents and businesses in the Kulim district have limited options for travel, with the nearest major airport being over two hours away. A new air hub would therefore improve accessibility and make it easier to travel in and out of the region.

The government’s main thinking for a greenfield airport is to power an economic transformation of Kedah state and improve connectivity in the northern region which has been sorely lacking. It is hoped that the gateway will contribute up to $270 million to the country’s Gross National Income from 2026.

Among Malaysia’s 15 states or federal territories, Kedah underperforms: in 2021 it was in the bottom three for GDP per capita according to Malaysia’s Department of Statistics even though it is the country’s fifth most populous state.

Much, therefore, rests on the shoulders of a new airport in Kulim and an entire aerotropolis is envisioned covering almost 4,000 hectares. It will encompass business and logistics hubs that will extend to the aerospace and tech industries. More detail on the aerotropolis components can be found in the report below.

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