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MALAYSIA Airports Holdings Bhd (MAHB) has imposed a total liquidated and ascertained damages (LAD) penalty of RM9.1 million on contractors Alstom IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd (IJMC-Pestech Joint Venture) for delays in delivering the new aerotrain system at Kuala Lumpur International Airport (KLIA).
The Ministry of Transport (MOT) confirmed that the penalties cover 91 days, from 1 April to 30 June 2025, calculated at RM100,000 per day in accordance with contractual terms.
“As stipulated in the contract, the LAD imposed amounts to RM100,000 per day, totalling RM9.1 million,” the ministry said in a written response posted on the Dewan Rakyat website.
The statement was made in response to a question from Khoo Poay Tiong (PH-Kota Melaka) regarding the penalty imposed by MAHB on the joint venture for failing to deliver the KLIA aerotrain project satisfactorily.
Earlier, MAHB stated that an independent rail assessor had confirmed that the KLIA Aerotrain system is operating as intended. The assessor noted that service disruptions observed since the system began operating are common during the early operational phase of complex rail systems.
“The assessor found that these disruptions do not pose safety risks, as structural engineering controls and continuous monitoring are in place to manage issues effectively,” MAHB said.
The LAD imposition underscores the government’s enforcement of project delivery obligations, while independent evaluations reassure that operational safety and engineering standards at KLIA remain uncompromised despite the delays. - February 27, 2026