Launch of Mitsui Outlet Park Phase 2

February 8, 2018 at 9:43 pm

SPEECH FOR YB DATO’ SRI LIOW TIONG LAI
MINISTER OF TRANSPORT MALAYSIA FOR
THE OFFICIAL LAUNCH CEREMONY OF THE MITSUI OUTLET PARK KLIA SEPANG PHASE 2
AT MITSUI OUTLET PARK KLIA SEPANG
8 February 2018

Ladies and Gentlemen,

1. First of all, let me thank MFMA Development for inviting me to officiate the launching of the Mitsui Outlet Park KLIA Sepang Phase 2, at Mitsui Outlet Park KLIA Sepang. The premium outlet mall has the potential of becoming the largest factory outlet mall in Southeast Asia after the completion of its expansion plans in 2021. This initiative will contribute to Malaysia’s global competitiveness and further strengthen Malaysia’s standing as one of the region’s best shopping destinations.

2. MOP KLIA Phase 2 represented Malaysia’s ever persevering spirit of growth and innovation. The outlet mall is one of Malaysia Airports’ key initial projects in its KLIA Aeropolis Master plan. Under the KLIA Aeropolis Masterplan, development is centred around 3 key clusters – air cargo and logistics, aerospace and aviation parks, as well as a MICE centre, short for meetings, incentives, conferences and events, and lastly leisure. The KLIA Aeropolis is anticipated to contribute RM30 billion to GDP over a 15-year period while creating 56,000 new jobs. It will also complement services offered in other regional airports. Malaysia anticipates achieving the target of 2.5 million to 3.0 million tonnes of air cargo volume by 2050.*

3. The KLIA Aeropolis Masterplan encourages Malaysia Airports to expand and diversify their efforts to generate non-aeronautical revenue that can help growth and increase competitiveness for KLIA as an airport city. The earliest venture into realising this vision is the Mitsui Outlet Park KLIA Sepang itself.

4. Under the Aeropolis Masterplan, we have:
– The 115 acre Aerospace Park – an OEM offshore centre for engineering services and aero manufacturing
– The 80 acre Logistics Park – a Logistic & Warehousing park with regional distribution centres, an e-commerce hub and a halal and perishables centre
– The 110 acre Aeronautical Support Zone 1 for cargo, logistics and other ancillary airport services, cargo terminal operations, freight forwarding and other cargo related operations
– The 200 acre Aeronautical Support Zone 2 – for maintenance, repair and overhaul, as well as an airline forward base to handle, among others, catering and ground handling
– and of course, the very reason we are all here today, The Mitsui Outlet Park KLIA Sepang

5. It is evident that every aspect of the KLIA Aeropolis Masterplan is designed to cater directly or indirectly as aviation support. However, Mitsui Outlet Park KLIA Sepang has a different role to play, it caters more directly to the passenger market, creating a different avenue to contribute towards the economy via its retail offering of premium world class brands from international players and it also offers a platform to provide exposure for top notch home grown brands. Today, through Phase 2, it has increased its variety for shoppers as well as added an Indoor Entertainment Centre that caters to kids as well, creating a more holistic environment for both young and old. Beyond its appeal for great shopping deals, it has also become a popular destination for locals as well, to spend time with the family.

Ladies and Gentlemen,

6. The logistics sector is increasingly recognised as one of the pillars of economic performance. With the many challenges to stay competitive, we also realise that the logistics industry can be better sustained if the revenue stream can be supported by expanding into other markets like trade and services with international partnerships forged along the way. Mitsui Outlet Park KLIA Sepang is an ideal example of the success that can be achieved. Malaysia Airports and Mitsui Fudosan, in partnership through MFMA Development, have created an entity in Mitsui Outlet Park KLIA Sepang that is not only self-sustaining but also offers an alluring destination that helps make KLIA and klia2 the choice airport entry points to South East Asia. Likewise, the international retailers here will also benefit from the higher quality logistics services provided by the logistics service providers as the result of their operations. This mutual beneficial relation between international retailers and logistics service providers will make Malaysia an attractive location for their operation.

7. To provide further impetus for the operators, both the retailers and logistics in KLIA Aeropolis, the National Logistics Task Force which I chair are working together with Port Klang Authority, MDEC and Royal Malaysian Customs Department to further improve the cargo handling from Port Klang to KLIA. We aim to attain a seamless cargo movement between Port Klang and KLIA. This is to facilitate the DFTZ and the logistics operations in KLIA.

8. This seamless cargo handling management is expected to be operation by middle of this year. It is an additional initiative to what we have plan for DFTZ. Under the DFTZ, we have committed to provide the service-level agreement for cargo clearance for cross-border trade. KLIA is the first in the country to commit a three-hour end-to-end cargo clearance with a 90% service-level agreement, which is on a par with the best in the region. In addition, the cargo time in terminal operators will be reduce from four hours to 90 minutes.

9. I am happy that the KLIA already have a comprehensive logistics and trade facilitation facilities such as cargo clearance, warehousing, cargo handling and freight forwarding to help accelerate the growth of air cargo volumes. Also the number of freighters operating in KLIA is expected to double in the next 10 years from the current 14.

10. With all these facilities, I hope that Mitsui would deepen their investment in Malaysia especially setting up the regional distribution centre in KLIA Aeropolis for the Asean region and beyond. This will also provide catalyst for more Japanese logistics operators to set up similar operation here to support the growing trade between Japan and Asean.

11. The collaborative effort between Malaysia Airports and Mitsui Fudosan under their joint venture company MFMA Development further underscored Malaysia’s bilateral relationship with Japan, which is warm and longstanding with strong political and economic ties

Ladies and gentlemen,

12. Malaysia Airports, on the other hand, will continue to elevate service standards at KLIA through a series of initiatives in 2018. As one of the world’s busiest airports, the initiatives are aimed at further enhancing service levels for airport users.

13. Amongst the initiatives include comfortable seating has been upgraded for the bus waiting area, increasing Immigration Department counters during peak periods so that queueing time is shortened, enforcing strict measures to reduce traffic congestion at the pick-up and drop-off lanes, overhaul and upgrade of aerotrains as well as featuring an awareness and instructional video at security screening checkpoints so passengers know what to expect and ensure a smoother process. All these measures contribute to increased time savings and passenger comfort.

14. It is encouraging to note that overall international passenger growth in Malaysia contributed by both local and foreign carriers registered double digit growth for the 22 carriers operating here.

15. KLIA recorded 58.5 million passengers in 2017, up 11.2% over 2016. KLIA Main Terminal handled 10.8% more passengers at 28.3 million compared with 2016, while klia2 handled 30.3 million passengers, a growth of 11.6% over 2016.

16. In 2017, most of the airlines registered 20% growth increase at KLIA and klia2. In 2018, traffic numbers are again expected to be mainly contributed by China, India and Southeast Asia sectors, which currently make up 75% of the international traffic.

17. The China and India sectors are likely to continue with the double digit growth in 2018. The international statistics show great promise for Mitsui Outlet Park KLIA Sepang’s visitor growth and with the addition of Phase 2, we see a probable increase in its economic contribution via tourist expenditure.

18. Mitsui Outlet Park KLIA Sepang is a joint initiative by both Ministry of Transport and Ministry of Tourism and Culture. The project was granted Entry Point Project (EPP) status under the Economic Transformation Programme, National Key Economic Area (NKEA) for Tourism (EPP3 – Establishing Premium Outlets in Malaysia). I would also like to commend the Ministry of Tourism and Culture for the continuous support given to Mitsui Outlet Park KLIA Sepang. This is one of the clear examples of how our Ministries in Malaysia work together for the betterment of the country.

19. We, at the Ministry of Transport, have had the privilege to oversee the developments that are abound for the KLIA Aeropolis Masterplan, and I commend MFMA Development, Malaysia Airports and Mitsui Fudosan on the realisation of Phase 2. It is great to see a partnership that is cohesive and attuned. I am pleased to note that we have full confidence in your capabilities to steer and grow Mitsui Outlet Park KLIA Sepang into becoming South East Asia’s largest outlet mall.

20. The Ministry of Transport is committed to supporting the growth of the nation’s logistics industry and strengthening Malaysia’s position as the preferred logistics gateway to the region. We will continue to work closely with all the participants in the KLIA Aeropolis Masterplan to ensure that Malaysia, or namely KLIA and klia2 will remain top choice for airport users.

21. On behalf of the Ministry of Transport, I would like to extend my appreciation to all the international partners who have made the Mitsui Outlet Park KLIA Sepang a success. That includes the business partners, the international array of tenants and the international companies that have in different ways worked behind the scenes. Thank you for your trust and faith in doing business with us here in Malaysia. Together, we can forge stronger ties and prosper.

22. Last but not least, when Mitsui Outlet Park KLIA Sepang first opened back in 2015, it was the Prime Minister of Malaysia, Dato’ Seri Najib Tun Razak who officiated the event. Today, I am honoured to be called upon to officially launch Phase 2.

23. Thank you.