Anwar Assures Malaysian Interests Remain Paramount In MAHB Privatisation

Anwar Assures Malaysian Interests Remain Paramount In MAHB Privatisation

Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.

In a significant development for Malaysia’s aviation sector, Prime Minister Datuk Seri Anwar Ibrahim has revealed that Global Infrastructure Partners (GIP) was chosen to spearhead the privatisation of Malaysia Airports Holdings Berhad (MAHB) after the firm agreed to key government conditions.

Speaking in the Dewan Rakyat during Minister’s Question Time on Tuesday (25 June), Anwar emphasised that GIP had committed to appointing a Malaysian citizen as both chairman and CEO of MAHB while also ensuring that the collective national ownership of shares would be maintained at a majority level.

The Prime Minister noted that Khazanah Nasional and the Employees Provident Fund (EPF), MAHB’s two main state-linked shareholders, had set stringent requirements for potential bidders.

These included increasing the collective Malaysian ownership of MAHB from the current 41% to 70% once the restructuring is completed.

“Other interested companies wanted management rights, including the chairman and CEO roles. These terms were not accepted by Khazanah and EPF, which is why GIP was chosen,” Anwar explained, underlining his government’s commitment to safeguarding national interests.

Substantial Investment to Fuel Economic Growth

The Prime Minister also stressed that the issue of selling MAHB’s shares to foreign entities did not arise, as the majority ownership would remain with domestic players.

He clarified that foreign ownership of MAHB’s shares, which previously stood at around 27%, had been taken over by GIP and Abu Dhabi Investment Authority (ADIA).

“MAHB is just the company that manages the airports. The Malaysian government continues to be the owner of the airports,” Anwar reassured the Dewan Rakyat.

The Prime Minister further highlighted the pressing need for the RM10 billion (US$2.1 billion) investment that would result from the MAHB privatisation exercise.

This substantial influx of funds would enable Khazanah and the EPF to invest in other critical sectors of the economy, potentially boosting growth and development.

GIP’s Global Expertise: A Catalyst for Malaysia’s Aviation Growth

GIP, which has been collaborating with the EPF and other Malaysian companies since 2012, brings extensive experience in managing and operating airports worldwide.

GIP’s portfolio, which includes Sydney Airport, London Gatwick Airport, Edinburgh Airport, and Signature Aviation, demonstrates the firm’s ability to drive efficiency, enhance customer experience, and foster sustainable growth in the aviation industry.

By collaborating with GIP, Malaysia gains access to the firm’s deep reservoir of knowledge and best practices gleaned from its successful investments in some of the world’s most prominent airports.

MAHB can implement cutting-edge technologies, streamline processes, and adopt innovative solutions successfully deployed in other world-class airports under GIP’s management.

This is particularly crucial given the numerous complaints that have been raised about the nation’s airports.

In essence, the collaboration with GIP represents a significant milestone in Malaysia’s journey towards building a world-class aviation industry that can drive economic growth, create jobs, and enhance the nation’s connectivity to the rest of the world.

With GIP’s proven track record and the government’s commitment to safeguarding national interests, this partnership promises a brighter future for Malaysia’s aviation sector and the nation as a whole.

This partnership is crucial as infrastructure development will be key to unlocking Malaysia’s full potential in the coming years.

Share your thoughts with us via TRP’s Facebook, Twitter, Instagram, or Threads.