KOTA KINABALU – East Malaysia-based companies gained early visibility of upcoming airport development opportunities through the Procurement and Project Showcase in Kota Kinabalu, as infrastructure development and asset renewal gather pace across airports in Sabah and Sarawak.

Following the inaugural Procurement and Project Showcase in Kuala Lumpur, the East Malaysia edition brought the initiative closer to contractors, consultants, suppliers, technology providers and specialist firms in Sabah and Sarawak. Participants gained deeper visibility of Malaysia Airports' development pipeline and future project requirements, enabling them to assess their readiness and strengthen the capabilities needed for upcoming opportunities.

A total of 144 companies attended, including 87 CIDB G7 contractors, representing 60% of participating companies and reflecting strong interest from established industry players in the region. The strong participation also reflects the groundwork laid through last year's Vendor Roadshows to broaden local participation in Malaysia Airports' procurement ecosystem.

The engagement comes as Malaysia Airports advances the proposed upgrading and expansion of Kota Kinabalu International Airport, which would increase its capacity from 9 million to 12 million passengers annually. The development includes the expansion and renovation of the existing terminal, airside infrastructure upgrades, and the reconfiguration of the kerbside and car park to support Sabah's continued growth as a regional gateway.

The development outlook extends beyond Kota Kinabalu. Malaysia Airports is also working with the Government to support proposed upgrades at other airports across East Malaysia, including Sandakan, Lahad Datu and Tawau in Sabah, as well as Miri in Sarawak.

Managing Director of Malaysia Airports, Dato' Mohd Izani Ghani, said the scale and diversity of the development pipeline make early engagement with the regional vendor community essential.

"East Malaysia is an important part of Malaysia Airports' development agenda. While Kota Kinabalu International Airport is a major focus, the wider programme includes proposed improvements at airports serving communities and economic centres across Sabah and Sarawak. This creates a diverse range of requirements, from terminal and airside works to baggage systems, technology and passenger facilities. By engaging the industry early, we want capable East Malaysia-based companies to understand what is required, strengthen their readiness and position themselves to participate in the opportunities ahead."

The showcase gave participants greater visibility of project scopes, procurement timelines and capability requirements across five priorities: capacity expansion, asset renewal and operational resilience, passenger experience, smart airport technology, and sustainable infrastructure. Opportunities extend beyond major construction to engineering, maintenance, baggage and terminal systems, traffic management, ICT, automation and energy solutions.

The showcase also provides potential vendors with a clearer understanding of the requirements of working within an operational airport environment, where projects must be delivered without compromising safety, service continuity or the passenger journey. Vendor assessment extends beyond cost to include technical capability compliance, quality controls, delivery track record and the ability to undertake work while airport operations continue.

Malaysia Airports continues to work with CIDB Malaysia to facilitate industry participation and strengthen the readiness and competitiveness of local contractors. Interested companies are encouraged to register through Malaysia Airports' official Vendor Management System to obtain information on registration requirements and future procurement opportunities.

Building a future-ready airport ecosystem. The Procurement & Projects Showcase in Kota Kinabalu brought together 144 industry players to gear up for East Malaysia's exciting aviation future.

SEPANG – KL International Airport (KLIA) Terminal 1 is introducing a refreshed e-hailing pick-up experience with a series of facility enhancements and operational improvements designed to make passenger arrivals smoother, faster and more convenient.

Effective 4 August 2026, passengers using e-hailing services at Level 1, Main Terminal Building will benefit from a more organised and efficient pick-up experience through several new features, including a License Plate Recognition (LPR) system that is integrated with a Passenger Information Display System (PIDS), self-service kiosks, dedicated passenger waiting lounges, structured pick-up bays and on-ground marshals to assist passengers and facilitate traffic flow.

The improvements are part of KLIA's ongoing efforts to enhance passenger experience, optimise traffic movement and improve operational efficiency. The initiative was developed following engagement sessions with e-hailing operators and in coordination with the Ministry of Transport (MOT) and the Land Public Transport Agency (APAD), in line with the National Airport Facilitation Working Committee's (NAFWC) recommendations.

The enhanced e-hailing system will strengthen monitoring and access control, helping to deter illegal e-hailing activities while ensuring that only authorised e-hailing vehicles utilise the dedicated pick-up facilities. To sustain the continued operation and maintenance of these enhanced facilities and systems, an entry fee of RM3.00 will be introduced for every e-hailing vehicle entering the designated passenger pick-up area at Level 1, Main Terminal Building, KLIA Terminal 1 from 4 August 2026.

According to Abd Hasman Abd Muhimin, Senior General Manager for Passenger Experience at KLIA, "A great airport experience doesn't end at the terminal. It continues throughout the passenger journey, where every touchpoint matters. We appreciate the continued support and collaboration of our e-hailing partners in delivering a more seamless, organised and reliable first mile and last mile travel experience. These enhancements are another step towards elevating the passenger journey and reinforcing KLIA's position as a world-class gateway."

As part of the operational improvements, e-hailing vehicles will continue to be allocated a maximum of 10 minutes at the kerbside pick-up area. Vehicles exceeding this duration will be subject to the applicable penalty charges, helping to ensure smoother traffic circulation, greater availability of pick-up bays and a more efficient passenger pick-up experience for all.

SEPANG – Kuala Lumpur became Riyadh Air’s first destination in Southeast Asia with the launch of its inaugural service between Riyadh and KL International Airport (KLIA) yesterday (31 July 2026), adding a new direct connection between Malaysia and Saudi Arabia.

The inaugural flight was welcomed at KLIA Terminal 1 by His Excellency Mr. OsamahDakhel R. Al Ahmadi, Ambassador of the Kingdom of Saudi Arabia to Malaysia; Dato' Seri Jana Santhiran Muniayan, Secretary General, Ministry of Transport Malaysia; His Excellency Dato' Syed Mohamad Bakri Syed Abdul Rahman, Ambassador of Malaysia to the Kingdom of Saudi Arabia; Mr. Chua Choon Hwa, Deputy Secretary General (Tourism) of the Ministry of Tourism, Arts and Culture Malaysia; Dato' Mohd Izani Ghani, Managing Director of Malaysia Airports; and Mr. Vincent Coste, Chief Commercial Officer of Riyadh Air.

The three-times-weekly service further strengthens Malaysia’s connectivity with the Middle East and reflects the continued confidence of international carriers in Malaysia as a strategic gateway to Southeast Asia. Beyond facilitating tourism, stronger air links support trade, investment and closer bilateral ties, while creating greater choice for travellers between the two countries.

The route serves a diverse travel market spanning tourism, business, education, religious travel and visits between families and communities. As Riyadh Air expands its international network, it also creates the potential for broader connections between Southeast Asia and destinations beyond Riyadh.

Malaysia Airports Managing Director Dato’ Mohd Izani Ghani said Riyadh Air’s decision to make Kuala Lumpur its first Southeast Asian destination adds further depth to KLIA’s growing international network, “Kuala Lumpur provides Riyadh Air with access to the heart of Southeast Asia, while Riyadh is rapidly developing its position as an international aviation hub. As both networks grow, this route has the potential to connect travellers to a much wider range of destinations through our respective gateways

“Our focus is not simply on adding more airlines or destinations. It is about building a network that gives passengers greater choice, strengthens Malaysia’s links with key markets and creates long-term value for our airline partners.”

In the first half of 2026, KLIA welcomed 1.2 million passengers from the Middle East across nine routes served by eight Middle Eastern carriers. Riyadh Air is the ninth Middle Eastern airline to serve KLIA.

The new service also comes as Malaysia continues its tourism push through 2026 and into 2027. Stronger international connectivity will support this effort by providing travellers from Saudi Arabia with greater access to Malaysia, while giving Malaysian travellers another direct connection to Riyadh and potentially to destinations beyond as Riyadh Air’s network develops.

SEPANG – Malaysia Airports recorded 51 million passenger movements across its network of airports in Malaysia during the first half (1H) of 2026, an increase of 1.8% compared to the corresponding period last year. The growth was driven by sustained international demand, which offset softer domestic traffic as airlines continued adjusting capacity in response to evolving market conditions.

In June alone, Malaysia Airports handled 7.6 million passengers, comprising 4.1 million international and 3.5 million domestic passengers. Passenger traffic moderated compared to May, reflecting a continuation of broader market trends observed throughout the second quarter as airlines responded to elevated fuel prices, geopolitical uncertainty and changing travel demand by optimising their networks and capacity deployment.

Domestic passenger movements declined 4.4% in the first half of 2026 as airlines adjusted capacity amid elevated operating costs and softer market demand. The moderation was most evident across Sabah, where passenger movements fell 7.1%, while Penang, Langkawi and several secondary airports also registered lower traffic year-on-year.

International passenger traffic grew 7.7% year-on-year during the first half of the year to 27.8 million passengers, supported by healthy demand from key markets including Indonesia, Singapore, Thailand, China, Australia, Vietnam and Europe. At KLIA, international passenger movements rose 7.8% year-on-year to 23.4 million passengers, while total passenger movements increased 5.4% year-on-year to 31.7 million. Improved utilisation of available airline capacity also saw average international load factors strengthen, reflecting continued demand despite a more challenging operating environment.

Malaysia Airports also continued expanding its connectivity during June with the introduction of eight new services. These included Wings Air's inaugural Pekanbaru–Melaka route, AirAsia's new service Kota Bharu–Jakarta and Kuala Lumpur-Kansai, China Eastern Airlines' Dalian–Kuala Lumpur service via Nanjing, Lion Air's Kuala Lumpur–Lombok and Banjarmasin-Kuala Lumpur and Batik Air Shanghai and Padang to Kuala Lumpur. The additional services further strengthened connectivity between Malaysia and key regional markets while expanding travel options for passengers.

Across the MAHB Group, including Istanbul Sabiha Gokcen International Airport (ISG), passenger movements reached 74.8 million during the first half of 2026, representing a 3.2% increase over the same period last year. ISG contributed 23.8 million passengers, supported by continued international demand and network growth.

Malaysia Airports Managing Director Dato' Mohd Izani Ghani said, "June reflected the more cautious operating environment across the aviation industry as airlines continued adjusting capacity in response to evolving market conditions. While this moderated domestic passenger traffic, we remain focused on strengthening connectivity and supporting our airline partners to capture future growth opportunities."