RM9.1mil penalty imposed on contractors over aerotrain, says transport ministry

2026-02-26 - 23:53

MAHB previously said an independent rail assessor had confirmed that the KLIA aerotrain system was operating as planned. (Bernama pic) KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) has imposed a 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). The transport ministry said this followed their failure to complete the new aerotrain project at KLIA. It said the penalty was imposed for 91 days, from April 1, 2025 until June 30, 2025. “As stated in the contract, the amount of LAD imposed is RM100,000 per day or a total amount of RM9.1 million,” it said in a reply on the Parliament website. It was responding to a question from Khoo Poay Tiong (PH-Kota Melaka) on the amount of LAD or penalty imposed by MAHB on contractor Alstom IJM-Pestech Joint Venture for failing to satisfactorily deliver the new aerotrain project. MAHB previously said an independent rail assessor had confirmed that the KLIA aerotrain system was operating as planned, with the service disruptions observed since it became operational considered normal in the early operational phase of a complex rail system. It said the assessor found that the disruptions posed no safety risk as structured engineering controls and ongoing monitoring were in place to effectively manage the issues.