New MAHB Shareholders Set To Drive Long-term Growth And Efficiency

By Kisho Kumari Sucedaram and Harizah Hanim Mohamed

KUALA LUMPUR, April 23 (Bernama) --  Malaysia Airports Holdings Bhd (MAHB) is undergoing a strategic transformation following its privatisation, with new shareholders focused on enhancing the passenger journey, remediating and revitalising infrastructure, and improving operational efficiency across the network.

MAHB chairman Dr Nungsari Ahmad Radhi said the new board is undertaking a comprehensive assessment to determine the most effective path forward for the airport operator.

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“We are currently evaluating data and performance baselines to establish a strategic direction that aligns with long-term growth and sustainability.

“The new shareholders are taking a long-term, holistic view of capacity requirements and the investments needed to meet them,” he told Bernama in a recent interview.

On Feb 12, 2025, Gateway Development Alliance (GDA), a consortium comprising Khazanah Nasional, Employees Provident Fund, Abu Dhabi Investment Authority and Global Infrastructure Partners (GIP), acquired 1.64 billion MAHB shares, or 98.68 per cent of the company’s issued capital as of 5 pm that day.

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Subsequently, on Feb 13, MAHB submitted its application to delist from Bursa Malaysia’s Main Market, with its final day of public trading on Feb 19.

It was officially delisted on Feb 26 following the successful privatisation exercise.

The transaction raised questions over the involvement of foreign investors in a national asset.

Addressing those concerns, Nungsari emphasised that airports remain national assets, with MAHB continuing as the government-appointed manager under existing Operating Agreements (OAs) — a mechanism that preserves government oversight despite foreign participation.

“Furthermore, the government’s special share remains in MAHB,” he added.

Operating agreements secure long-term growth

On March 18, 2024, the Malaysian government, via the Ministry of Transport, and MAHB signed new OAs, effective for 45 years until Feb 11, 2069.

Under these agreements, the airport operator will continue to operate, manage, maintain and develop 39 airports and STOLports (short take-off and landing airports) across the country.

Nungsari said the OAs provide a structured framework for long-term infrastructure investment while ensuring financial sustainability.

He stressed that the airports remain government-owned, and the privatisation does not dilute the government’s position due to the legal protections enshrined in the OAs.

“The agreements allow MAHB to finance infrastructure projects upfront, with mechanisms in place to recover costs over time through regulated charges, even under private ownership,” he said.

He added that the OAs enable MAHB to improve passenger experience, upgrade facilities and meet future capacity demands without financial strain, while continuing to serve the public interest.

MAHB remains responsible for maintaining all 39 airports, including domestic and STOLports, many of which are not commercially viable but play critical public service roles.

“As part of our agreement with the government, we must manage all airports — not just the profitable ones. Ensuring safety and proper asset maintenance remains a priority,” he said.

Asked whether the privatisation was well received internally, Nungsari said employees and unions had been engaged throughout the process.

“This shift is about growth and operational improvements, not cost-cutting. Employees understand that better processes benefit everyone,” he said.

Infrastructure optimisation and terminal efficiency  

On airport efficiency, Nungsari said one of the key challenges is optimising Kuala Lumpur International Airport (KLIA), especially addressing the disparity between the near-full Terminal 1 and the underutilised Terminal 2.

With three runways providing sufficient flight capacity, he said the immediate priority is to refine terminal operations and upgrade ageing assets before committing to further expansion. A detailed review of traffic projections will guide future infrastructure decisions.

Financial strength and execution focus

Despite the privatisation, Nungsari said MAHB remains financially strong, supported by funding mechanisms under the OAs and a robust credit rating to facilitate capital raising.

“Funding is not an issue. The key focus now is execution, delivering projects on time and within budget,” he said, citing ongoing upgrades to critical infrastructure such as the baggage handling system.

Why foreign investors?

“We needed a foreign investor to help make the airport more efficient and competitive. GIP brings operational capabilities to the project,” he said.

From a market perspective, he noted that foreign investors already held about 29 per cent of MAHB shares before the privatisation. GIP’s participation, he added, is in line with historical ownership levels.

He added that, ultimately, the focus is on improvements and growth, with each member of the consortium bringing its expertise together under one roof to enhance airport operations.

-- BERNAMA