MAHB needs expert partner for airport transformation, says don

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MAHB needs a financially robust and experienced partner to transform the country's airports, according to National Council of Professors fellow Azmi Hassan. - BERNAMA FILE PIX

The partnership with GIP to transform Malaysia's airports should not be politicised because the extensive improvements required may need GIP's expertise and financial resources.

KUALA LUMPUR - Malaysia Airport Holdings Bhd (MAHB) needs a financially robust and experienced partner to transform the country's airports, according to National Council of Professors fellow Azmi Hassan.

He said that, based on this requirement, MAHB's major shareholders Khazanah Nasional Bhd (Khazanah) and the Employees Provident Fund (EPF) have offered their shares to potential investors.

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"This offer was extended to numerous investment companies by EPF and Khazanah. However, only Global Infrastructure Partners (GIP) accepted.

"Rejecting GIP would limit MAHB's potential for improvement as we need their expertise and financial strength," Azmi said on the 'MAHB Ke Arah Lebih Gemilang’ programme on Bernama TV on Wednesday.

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Azmi emphasised the need for GIP's involvement to prevent Kuala Lumpur International Airport (KLIA) from lagging behind competitors like Changi Airport in Singapore and airports in Thailand, which benefit from substantial investment and strong financial backing.

He argued that the partnership with GIP to transform Malaysia's airports should not be politicised because the extensive improvements required may need GIP's expertise and financial resources.

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On May 15, Gateway Development Alliance (GDA) and its shareholders (the consortium) announced a voluntary pre-condition offer to acquire all MAHB shares not already owned by the consortium, at RM11.00 per share, totalling RM18.4 billion.

The consortium is led by Khazanah, through its wholly-owned subsidiary UEM Group Bhd, and EPF.

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It also includes a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and a fund managed by GIP, one of the world's leading infrastructure investors with significant airport management experience.

Upon completion of the transaction, Khazanah and EPF will collectively hold a 70 per cent stake in MAHB, while ADIA and GIP will own the remaining 30 per cent.

MAHB manages 39 airports in Malaysia, including five international airports, 17 domestic airports, 17 STOLports (short takeoff and landing airports) and Sabiha Gokçen Istanbul International Airport in Turkiye.

GIP has decades of experience in airport management, with investments in Sydney Airport, London Gatwick Airport, Edinburgh Airport, Signature Aviation and previously London City Airport. - BERNAMA