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Bukit Kayu Hitam duty free to close for new road project | Scoop
Bukit Kayu Hitam Duty Free Complex will close at a yet to be disclosed date as the Home Ministry is acquiring the site for a road construction project. - Kedah Tourism pic, October 4, 2024
News

Bukit Kayu Hitam duty free to close for new road project

Malaysia’s Home Ministry to acquire land, ending lease held by private companies operating retail outlet

Scoop Reporters
Updated
9:27 AM MYT

 

KUALA LUMPUR — The Bukit Kayu Hitam Duty Free Complex is set to close following the compulsory acquisition of land by the government for a road construction project.

Duty Free International Ltd, the parent company that holds the land and operates retail activities at the complex through subsidiaries, announced the acquisition by the Malaysian government in a filing with the Singapore Exchange.

The October 3 announcement said that subsidiaries Cergasjaya Sdn Bhd and Cergasjaya Properties Sdn Bhd (CPPA), received notices on the Home Ministry’s compulsory acquisition of the land on September 26.

“(The compulsory acquisition of the land) is needed for a road construction project to connect the Bukit Kayu Hitam Immigration, Customs, Quarantine, and Security Complex (ICQS) to the CIQ Sadao facilities in Thailand.

“The compulsory land acquisition will cause a closure of the Group’s duty-free business at Bukit Kayu Hitam,” the company said.

The lands to be acquired involve one lot held by Cergasjaya under a direct lease from Kedah until 2071, and another leased by CPPA from the Kedah State Development Corporation until 2053.

The land enquiry process is still ongoing to determine compensation and further announcements will be made on the compulsory acquisition’s financial impact to DFI, the company added.

Cergasjaya had contributed around 24% revenue to DFI based on the group’s audited consolidated financial statements for the year ending February 29, 2024.

Bukit Kayu Hitam is the main border checkpoint for Malaysians crossing into Thailand and saw more than 51,000 travellers pass through the ICQS complex there during the school holidays last month. – October 4, 2023

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