12 February 2014
After a lengthy delay, the new low cost terminal klia2 is set for a 2 May opening with a strong mix of international and local brands.
Malaysia Airports Senior General Manager Commercial Services Puan Faizah Khairuddin told The Moodie Report: “We see a full take-up rate for all tendered outlets at klia2 and there is a good balance of international to local brands. In the travel retail business, it is important to have brands that are familiar to passengers and customers.
"klia2 plays a role as an important platform to introduce local Malaysian products to travellers, especially foreign visitors, and it also enhances the Sense of Place.”
As reported, klia2 will offer 35,200sq m of commercial space, spread across 225 tenant lots: 118 for retail, 80 for food & beverage and 26 for services. All these will be at high traffic and high visibility areas, ranging from 15sq m to over 300sq m in size.
The strong Malaysian presence – led by Malaysia Airports subsidiary Eraman and Kuala Lumpur-based The Valiram Group – is complemented by a powerful line-up of international names, including Heinemann Asia Pacific, Nuance-Watson Asia, WHSmith and LS travel retail.
The Shilla Duty Free, which was initially selected to run two perfumes & cosmetics stores under the brand name Beauty Collection at the Level 2 International Departures Satellite, will no longer be setting up operations at klia2. As reported, the five-year contracts for the 131sm and 103sq m stores are being re-tendered as a single contract, with bids closing on 20 February.
The low-cost terminal is now slated for a May opening, its latest scheduled date after a series of delays from the initial target in September 2011. Among other repercussions, the delay has caused significant difficulties for retailers and food & beverage operators which had been ready to open for business alongside the new terminal.
A report in New Straits Times noted the high proportion of local retailers and food & beverage operators. Citing Domestic Trade, Cooperatives and Consumerism Minister Datuk Hasan Malek, the report said that about 60% of the retailers which have signed up to set up outlets at klia2 are Malaysian companies.
Hasan added that local companies would be playing an important role in marketing and introducing Malaysian products to travellers, especially those arriving from foreign countries.
“Not only [will it] be a hub for low cost airlines, [klia2] has the potential to be the new commercial and retail hub for the nation as travellers will be able to purchase various products,” Hasan said after visiting the facility this week.
He said the KLIA hub was one of the entry point projects (EPP) under the National Key Economic Areas (NKEA) for the wholesale and retail sector which overseen by the ministry.
Even though klia2 is a private initiative by Malaysia Airports, Hasan said the government “acts as a facilitator to ensure successful implementation of the project”.
“I hope that the KLIA hub will provide an opportunity for our local companies to market and promote their products. I will ensure that these local products are placed at strategic locations so it can attract the travellers,” Hasan said.
He added that the project would create a total of 12,000 jobs in the country by 2020.