MAHB privatisation complied with law, takeover code, says PAC

PETALING JAYA: The takeover and privatisation of Malaysia Airports Holdings Bhd (MAHB) complied with the law and the Malaysian Code on Takeovers and Mergers, the Public Accounts Committee (PAC) said today.

Speaking at a press conference on the committee’s findings on issues at MAHB and public airports, PAC chairman Mas Ermieyati Samsudin said this was confirmed by the Securities Commission Malaysia and Bursa Malaysia.

She said the finance ministry, transport ministry, Khazanah Nasional Bhd, and EPF had also assured PAC that national sovereignty at the country’s main entry points remained protected, as airport land and assets remained government-owned while MAHB served only as the operator.

“MAHB and the consortium (led by Khazanah) have no access to classified data such as immigration records, which remain under the relevant ministries and/or agencies,” she said.

Mas Ermieyati said local airlines were more concerned with the success of MAHB’s transformation plan than its ownership structure, while calling for greater capital investment and higher operational standards.

“Local airlines expressed a desire for more proactive involvement in the national airport transformation and improvement plan,” she added.

MAHB was taken private in February 2025 by a consortium led by Khazanah in a RM12.3 billion deal at RM11 a share.

Khazanah and the EPF now hold 40% and 30% of MAHB respectively, retaining a “golden share”. The remaining 30% is held by the Abu Dhabi Investment Authority and Global Infrastructure Partners.

The privatisation drew criticism from some quarters, with claims that the EPF lost about RM500 million after buying back MAHB shares for more than it had sold them.

Mas Ermieyati said among PAC’s recommendations was for the government to maintain at least a 70% strategic stake in MAHB despite its delisting.

“Airports remain a strategic national asset; at least 70% strategic control must be maintained, and any ownership change touching strategic assets or national interest must get Cabinet approval and be carried out transparently,” she said.

The committee also recommended that the transport ministry and Civil Aviation Authority of Malaysia (CAAM) require MAHB to publish regular operational and service performance reports, while the finance and transport ministries should require periodic progress and financial reports on major projects such as the aerotrain and baggage handling system upgrades.

“These reports should be tabled in the Dewan Rakyat and reported to PAC on a scheduled basis,” she said.

Mas Ermieyati said PAC found that recurring infrastructure breakdowns, such as aerotrain disruptions and delays in upgrading the baggage-handling system, stemmed from years of failed restorative and preventive maintenance, coupled with insufficient capital investment.

She said recurring basic service failures such as faulty toilets, roof leaks, and broken air bridges were linked to incompetent contractors getting the job.

As such, the committee called for tighter procurement screening involving the Malaysian Anti-Corruption Commission, CAAM, and the Malaysia Competition Commission.

The committee also recommended that MAHB work with the finance, transport, tourism, investment, security and communications ministries, as well as airlines, to develop an integrated national airport development plan.

It further proposed that MAHB establish a regular consultative platform with major airlines including Malaysia Aviation Group, AirAsia, and Batik Air.

“Airport development can no longer be reactive or unilateral, and must factor in ‘below-wing operations’ input from airlines,” she added.