GIP willing to relinquish stake in Malaysia airports within a short period — Amir Hamzah

KUALA LUMPUR: 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 time frame, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said GIP was selected from among hundreds of companies based on stringent criteria, including agreeing to have Malaysian citizens as MAHB chairman and managing director.

“As I have already mentioned, we take a firm stance in safeguarding the interest held in 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 Hamzah said Khazanah Nasional Bhd and the Employees Provident Fund (EPF) have also conducted a detailed process for selecting a technical partner that is aligned with the goals to transform and improve the efficiency of the nation’s airports.

The minister said he believes GIP’s expertise, experience and success in optimising airport efficiency are needed to boost the airports’ competitiveness and efficiency.

Giving an example, Amir Hamzah said GIP has successfully increased Edinburgh Airport’s destinations to Edinburgh Airport in Scotland from 141 to 225.

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 Hamzah said, also took into consideration the urgent need to implement reforms at MAHB through the formation of a consortium led by Khazanah Nasional and EPF which would take over the majority stake of 70 per cent in MAHB, 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 will be able to 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 explained that MAHB has invested only about RM1.4 billion for its 39 airports within the last five years compared to its peers in Thailand and Indonesia, which have invested RM6.6 billion and RM12 billion, respectively.

“So 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 one per cent per annum compared with its neighbours’ growth of eight per cent per year.

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. In comparison, Singapore and Thailand had 40 and 55, respectively.