GIP prepared to give up ownership in Malaysia Airports soon – Amir Hamzah
Global Infrastructure Partners (GIP) is making waves in Malaysia’s aviation sector with its readiness to be a minority shareholder in Malaysia Airports Holdings Bhd (MAHB) and its commitment to relinquish its stake within a short timeframe. This revelation came from Finance Minister II Datuk Seri Amir Hamzah Azizan, who highlighted GIP’s selection from a pool of hundreds of companies based on strict criteria, including the agreement to have Malaysian citizens as the chairman and managing director of MAHB.
In a bid to enhance the efficiency and competitiveness of the nation’s airports, Khazanah Nasional Bhd and the Employees Provident Fund (EPF) have meticulously vetted GIP as a technical partner aligned with their transformation goals. Amir Hamzah emphasized the need for GIP’s expertise in optimizing airport operations, citing the successful expansion of destinations and increase in passenger traffic at Edinburgh Airport under GIP’s management.
The government’s strategic move also involves the formation of a consortium led by Khazanah Nasional and EPF to acquire a majority stake of 70% in MAHB, with GIP and the Abu Dhabi Investment Authority holding the remaining interest. This collaboration aims to expedite vital reforms at MAHB and address the substantial investment requirements estimated at RM10 billion over a five-year period. Amir Hamzah underscored the urgency for Malaysia to catch up with its regional counterparts in airport infrastructure development, pointing out the lag in investment compared to Thailand and Indonesia.
Highlighting the impact of stagnant growth in Malaysia’s aviation sector prior to the Covid-19 pandemic, Amir Hamzah underscored the decline in long-haul routes and inbound growth rates compared to neighboring countries like Singapore and Thailand. The need for modernization and expansion of Malaysia’s airport network is crucial for regaining competitiveness in the region and attracting more international flights.
Amir Hamzah’s remarks in the Dewan Rakyat shed light on the government’s proactive approach to revitalizing Malaysia’s aviation industry through strategic partnerships and reforms. The synergistic efforts of GIP, Khazanah Nasional, and EPF signal a new chapter in Malaysia’s airport development, setting the stage for enhanced operational efficiency and sustained growth in passenger traffic.
As Malaysia embarks on this ambitious journey to transform its airports and bolster its connectivity on the global stage, stakeholders are optimistic about the positive impact of these initiatives on the country’s economy and tourism industry. With GIP’s proven track record in airport management and the backing of strong financial institutions like Khazanah Nasional and EPF, Malaysia is poised to elevate its aviation infrastructure to meet the demands of a rapidly evolving travel landscape.
In conclusion, the government’s collaboration with GIP and key financial players represents a strategic move to revitalize Malaysia’s airports and position the country as a hub of connectivity in the region. The proactive measures taken to attract investment, implement reforms, and enhance operational efficiency underscore Malaysia’s commitment to fostering growth and innovation in its aviation sector.
