Kuala Lumpur: 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 stated that the new board is undertaking a comprehensive assessment to determine the most effective path forward for the airport operator.
According to BERNAMA News Agency, Dr. Nungsari mentioned that they are currently evaluating data and performance baselines to establish a strategic direction that aligns with long-term growth and sustainability. He emphasized that the new shareholders are taking a long-term, holistic view of capacity requirements and the investments needed to meet them. On February 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 percent of the company’s issued capital as of 5 pm that day.
Subsequently, on February 13, MAHB submitted its application to delist from Bursa Malaysia’s Main Market, with its final day of public trading on February 19. It was officially delisted on February 26 following the successful privatisation exercise. The transaction raised questions over the involvement of foreign investors in a national asset. Addressing those concerns, Nungsari emphasized 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.
On March 18, 2024, the Malaysian government, via the Ministry of Transport, and MAHB signed new OAs, effective for 45 years until February 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.
Nungsari also highlighted 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 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. Nungsari stated that as part of their agreement with the government, they must manage all airports, not just the profitable ones, ensuring safety and proper asset maintenance remain a priority. In response to whether the privatisation was well received internally, Nungsari said employees and unions had been engaged throughout the process, emphasizing that the shift is about growth and operational improvements, not cost-cutting.
Addressing airport efficiency, Nungsari identified one of the key challenges as optimising Kuala Lumpur International Airport (KLIA), particularly the disparity between the near-full Terminal 1 and the underutilised Terminal 2. With three runways providing sufficient flight capacity, 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.
Despite the privatisation, Nungsari affirmed that MAHB remains financially strong, supported by funding mechanisms under the OAs and a robust credit rating to facilitate capital raising. He stated that funding is not an issue, and the key focus now is execution, delivering projects on time and within budget, citing ongoing upgrades to critical infrastructure such as the baggage handling system.
Nungsari also addressed the rationale behind involving foreign investors, stating that a foreign investor was needed to help make the airport more efficient and competitive, with GIP bringing operational capabilities to the project. From a market perspective, foreign investors already held about 29 percent of MAHB shares before the privatisation, and GIP’s participation is in line with historical ownership levels. 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.