MAHB Privatisation Signals Major Changes For Malaysia’s Airport Sector -- Aviation Experts
By Kisho Kumari Sucedaram
KUALA LUMPUR, Feb 25 (Bernama) -- The privatisation and delisting of Malaysia Airports Holdings Bhd (MAHB) represents a crucial turning point for the country’s aviation industry, offering a chance to improve operational efficiency and service quality across its airports, analysts opined.
This move is believed to pave the way for modernising Malaysia’s airport infrastructure and management systems, addressing long-standing concerns related to maintenance, efficiency, and competitiveness.
Singapore-based Sobie Aviation independent analyst and consultant Brendan Sobie said that while there are many areas for potential improvement at Malaysia’s airports, progress will take time, and the delisting marks only the beginning of a long journey.
“Over time, hopefully, we will see improvements in efficiency and service levels, benefitting both airlines and passengers,” he told Bernama today.
Journey begins towards better infrastructure, management
According to Sobie, the privatisation presents an opportunity to bring in international expertise to drive best practices and improvements within MAHB's structure.
Additionally, the introduction of modern systems could enhance overall airport operations in the long run.
He also viewed that many do not consider Malaysia’s airports to be professionally managed.
“The infrastructure is there but it often is not maintained well,” he said.
Sobie said Kuala Lumpur International Airport (KLIA), in particular, is seen as “falling apart” and could benefit from international airport management.
“Many stakeholders believe the current structure is weak and that airports in Malaysia, including KLIA, are suffering from archaic systems.
“I think what everyone would like to see is better-managed airports while maintaining a fair charging structure to ensure air travel remains affordable,” he said.
Sobie said that with the privatisation taking place, more concrete development plans should be seen for all the main airports, some of which will soon be operating above capacity.
According to him, the privatisation is expected to foster growth for MAHB through initiatives that will enhance passenger experiences, increase airline connectivity, upgrade airport infrastructure and provide benefits for Malaysia’s economy.
MAHB was delisted from Bursa Malaysia today following its successful privatisation exercise by the Gateway Development Alliance (GDA) consortium, marking the end of a 25-year corporate journey for the airport operator as a listed company since its debut on Nov 30, 1999, at a price of RM2.50.
Upon its listing in 1999, MAHB became the first listed airport management company in Asia and only the sixth in the world to do so.
MAHB shares were last traded at RM10.90 each, with 134,900 shares changing hands on Feb 19, 2025.
Potential to strengthen MAHB’s regional position
Universiti Kuala Lumpur Malaysian Institute of Aviation Technology economist (aviation and aerospace), Associate Professor Mohd Harridon Mohamed Suffian, highlighted the financial advantages of privatisation and the potential for Malaysia’s airports to strengthen their regional position.
“The delisting is a normal corporate practice to provide leverage for the transfer of ownership of MAHB.
“This exercise would perhaps enhance the financial stature of the organisation, as the GDA consortium has adequate financial standing to actuate myriad projects for the needed evolution of airports in Malaysia," he said.
Mohd Harridon believes that this transformation is crucial for Malaysia to compete with leading aviation hubs in the region.
“This transformational agenda is necessary for Malaysia to be the prominent hub for trade, commerce, logistics, and transportation and compete immensely with Singapore Changi Airport and Dubai International Airport,” he emphasised.
Mohd Harridon further said that the influx of trade would enhance the economic vibrancy of the nation and spur endogenous growth for the people.
Need for immediate operational evaluations
Besides that, he also stressed the importance of immediate operational evaluations to optimise airport efficiency and cost management.
“Furthermore, within a short operational time frame, it is imperative for comprehensive analyses to be actuated to streamline the daily operations of the airports in order to reduce any unwarranted wastages,” he said.
In his view, this is vital to mitigate any financial issues and provide adequate avenues for financial astuteness.
Meanwhile, Endau Analytics founder and aviation analyst Shukor Yusof said the privatisation comes at a time of growing geopolitical instability and heightened fears of worsening inflation globally.
He said those factors could possibly derail the transformation plans.
“Hopefully the backers of the privatisation exercise have a ‘Plan B’ in place if things do not go according to the expectations,” he added.
Having said that, industry observers remain hopeful that the restructuring will lead to enhanced efficiency, better facilities and more competitive positioning in the global aviation sector as Malaysia embarks on this new chapter for its airport operations.
Today, MAHB manages 39 airports across Malaysia, including five international airports, 17 domestic airports, and 17 STOLports (short take-off and landing airports) as well as the Istanbul Sabiha Gökçen International Airport in Turkiye.
Back in 1999, MAHB was the concessionaire for the management of KLIA in Sepang for a 50-year period, commencing May 5, 1998. It also manages and operates five international airports, 15 domestic airports and 17 STOLports around the country.
-- BERNAMA