Kuala lumpur: The proposed development of Malaysia’s first rocket launch pad will be executed through a private finance initiative (PFI) model, as announced by Science, Technology, and Innovation Minister Chang Lih Kang. This approach is designed to prevent any financial strain on the government’s budget.

According to BERNAMA News Agency, the minister emphasized that the PFI model is intended to keep government spending in check. Currently, feasibility studies have been submitted by two states, Sabah and Pahang, and are under evaluation. Minister Chang explained that the assessment process requires time and careful consideration.

Minister Chang addressed the media following the launch of the Cradle LIVE! Startup ASEAN Summit 2025. Malaysia is on track to become Southeast Asia’s first nation with its own rocket launch pad by the year 2029, with Pahang, Sarawak, and Sabah being the three shortlisted locations.

On September 20, Malaysian Space Agency (MYSA) director-general Datuk Azlikamil Napiah highlighted that the project aligns with the National Space Policy 2030. If successful, it could contribute over RM10 billion to Malaysia’s Gross Domestic Product by establishing the country as a regional leader in the rapidly growing space industry.