KUALA LUMPUR: The Ministry of Transport (MoT) hopes that the decision-making process for privatising Malaysia Airports Holdings Bhd (MAHB) will move more quickly.
Transport Minister Anthony Loke Siew Fook said the ministry is looking forward to seeing the deal materialise.
“MAHB can take a faster approach and quicker decision-making to invest and expand Malaysia’s aviation capabilities,“ he said during a fireside chat at CGS International Securities Malaysia Sdn Bhd’s 17th Annual Malaysia Corporate Day 2025 today.
Loke stressed Malaysia views aviation as a primary driver of economic growth.
“We see aviation as a strategy to bring economic growth to different areas. Malaysia is not just focusing on KLIA. It also targets regional airports such as Penang, Johor, Kota Bharu, Kelantan, Sabah, Sarawak and smaller secondary airports as drivers of local economic growth.
“So, we need investment. We need to have capital expenditure (capex). In the past, airport capex was purely funded by the government,“ he said, adding that previously MAHB only operated the airports and did not allocate capex due to the operating model.
The operating agreement has been revised to enable MAHB to make capex decisions.
“There are mechanisms for capex approval, such as the airport development fund and the investment recovery model, which allow certain capex to be recouped. These measures in the operating agreement will enable MAHB to fund airport expansions fully. This is something the MoT is committed to supporting,“ Loke said.
This model allows airports with potential upgrades or expansion to submit proposals to the MoT, which are then brought to Cabinet for policy approval, he added.
Loke said that every year, during the budget debate, members of parliament from various states request airport expansions in their constituencies.
“However, it is challenging for the MoT or the Ministry of Finance (MoF) to prioritise which airports to fund. Occasionally, by-elections in specific areas may influence decisions to prioritise or expand certain airports, but this approach is not sustainable,“ Loke said.
MoT supports the privatisation of MAHB and the increased involvement of Khazanah Nasional, the Employees Provident Fund (EPF) and the consortium – to enable faster decision-making regarding capex and investments.
Loke cited Penang as an example of this model’s success.
“That’s why we saw Penang take off. We also obtained Cabinet approval for Kota Kinabalu using the same recovery model. These are steps to drive airport expansion forward. We aim for passenger and cargo growth in all airports,“ he said.
Penang is in high demand due to the semiconductor industry, and Senai, positioned for growth, was highlighted as a key cargo hub.
“Kota Kinabalu is another important cargo hub. Sabah is rich in fisheries, but we have not capitalised on this potential due to logistical limitations. Expanding capacity and ensuring investments can fulfil demand will drive growth,“ Loke said.
On Monday, Gateway Development Alliance (GDA), the consortium proposing to privatise MAHB, extended the deadline for accepting its takeover offer by a week. According to a filing with Bursa Malaysia, the new deadline is Jan 17. The initial deadline was today.
“Save for the extended closing date, all other details, terms and conditions of the offer as set out in the offer document, including the offer price (RM11 per MAHB share) and the acceptance condition (90% of the total issued MAHB shares) remain unchanged,“ it said.
Sovereign wealth fund Khazanah (with a 33.248% equity interest) and the EPF (7.859%) currently own 41.107% of MAHB.
In May last year, GDA, comprising Khazanah via its wholly owned subsidiary UEM Group Bhd, the EPF, the Abu Dhabi Investment Authority (ADIA) and Global Infrastructure Partners (GIP), offered MAHB shareholders RM11 per share to take the company private. Post-privatisation, Khazanah would own 40% of MAHB, EPF 30%, and ADIA and GIP the remaining 30%.
