GIP willing to relinquish MAHB stake within short period, says Amir Hamzah

PETALING JAYA: Global Infrastructure Partners (GIP) has expressed its willingness to be a minority shareholder in Malaysia Airports Holdings Bhd (MAHB) and to relinquish its shareholding within a short timeframe, said second finance minister Amir Hamzah Azizan.

He was quoted by Bernama as saying that GIP was selected from among hundreds of companies based on stringent criteria, including agreeing to appoint Malaysian citizens as MAHB chairman and managing director.

“We take a firm stance in safeguarding the interests of strategic national assets. On this matter, only GIP is seen as fulfilling the conditions set,” he said during a special chamber session in the Dewan Rakyat today.

Amir said Khazanah Nasional Bhd and EPF had also carried out a detailed process for selecting a technical partner that was aligned with the goals to transform and improve the efficiency of the nation’s airports.

The minister said he believed GIP’s expertise, experience and success in optimising airport efficiency is needed to boost Malaysian airports’ competitiveness and efficiency.

He cited GIP’s role in increasing the number of flight destinations handled by Edinburgh Airport in Scotland from 141 to 225, as an example. The number of passengers at the airport also rose from 9.2 million in 2012 – when GIP took over – to 14.4 million last year.

He also noted that GIP replaced the passenger aerotrain at Gatwick Airport within only 10 months.

The government, Amir said, also took into consideration the urgent need to implement reforms at MAHB through the formation of a consortium led by Khazanah and EPF, which would take over a 70% majority stake, with the remaining interest held by GIP and the Abu Dhabi Investment Authority.

“Through the formation of the consortium, reforms to the nation’s airports can be implemented as soon as possible.

“MAHB’s investment requirements, totalling an estimated RM10 billion over a five-year period, can be expedited given the consortium members’ strong financial positions,” he said.

He said that MAHB had invested only about RM1.4 billion on its 39 airports over the past five years, compared with its peers in Thailand and Indonesia, which had invested RM6.6 billion and RM12 billion, respectively.

“It is high time. If we do not make any changes now, Malaysia will fall behind further in this region,” he said, adding that in the 10-year period prior to the Covid-19 pandemic, Malaysia’s inbound growth was only about 1% per annum compared with its neighbours’ growth of 8%.

He also said Malaysia’s long-haul routes to destinations such as London, Tokyo and Beijing fell from 33 in 2010 to only 22 in 2023. Meanwhile, Singapore and Thailand had 40 and 55, respectively.