Decide Quickly on MAHB Privatisation, Says Loke
Ministry of Transport Hopes for Faster Decision-Making
Transport Minister Anthony Loke Siew Fook has expressed the hope that the decision-making process for privatising Malaysia Airports Holdings Bhd (MAHB) will move more quickly. Loke stressed that Malaysia views aviation as a primary driver of economic growth.
Aviation as a Driver of Economic Growth
“We see aviation as a strategy to bring economic growth to different areas. Malaysia is not just focusing on KLIA. It also targets regional airports such as Penang, Johor, Kota Bharu, Kelantan, Sabah, Sarawak, and smaller secondary airports as drivers of local economic growth,” said Loke.
Investment Needed for Airport Expansion
“So, we need investment. We need to have capital expenditure (capex). In the past, airport capex was purely funded by the government,” Loke added. However, the operating agreement has been revised to enable MAHB to make capex decisions.
Revised Operating Agreement
“There are mechanisms for capex approval, such as the airport development fund and the investment recovery model, which allow certain capex to be recouped. These measures in the operating agreement will enable MAHB to fund airport expansions fully. This is something the MoT is committed to supporting,” Loke said.
Faster Decision-Making through Privatisation
MoT supports the privatisation of MAHB and the increased involvement of Khazanah Nasional, the Employees Provident Fund (EPF), and the consortium to enable faster decision-making regarding capex and investments.
Success of Penang and Kota Kinabalu
Loke cited Penang as an example of this model’s success. “That’s why we saw Penang take off. We also obtained Cabinet approval for Kota Kinabalu using the same recovery model. These are steps to drive airport expansion forward. We aim for passenger and cargo growth in all airports,” he said.
Cargo Hubs in Sabah and Johor
Penang is in high demand due to the semiconductor industry, and Senai, positioned for growth, was highlighted as a key cargo hub. Kota Kinabalu is another important cargo hub. Sabah is rich in fisheries, but we have not capitalised on this potential due to logistical limitations. Expanding capacity and ensuring investments can fulfil demand will drive growth.
Gateway Development Alliance’s Takeover Offer
On Monday, Gateway Development Alliance (GDA), the consortium proposing to privatise MAHB, extended the deadline for accepting its takeover offer by a week. According to a filing with Bursa Malaysia, the new deadline is January 17. The initial deadline was today.
Conclusion
In conclusion, the Ministry of Transport hopes for a faster decision-making process for the privatisation of MAHB, which will enable the company to invest and expand Malaysia’s aviation capabilities. The revised operating agreement and the involvement of Khazanah Nasional, the EPF, and the consortium will facilitate faster decision-making regarding capex and investments.
FAQs
Q: Why is the Ministry of Transport hoping for a faster decision-making process for the privatisation of MAHB?
A: The Ministry of Transport hopes for a faster decision-making process to enable MAHB to invest and expand Malaysia’s aviation capabilities.
Q: What is the revised operating agreement for MAHB?
A: The revised operating agreement enables MAHB to make capex decisions and provides mechanisms for capex approval, such as the airport development fund and the investment recovery model.
Q: What is the role of Khazanah Nasional, the Employees Provident Fund (EPF), and the consortium in the privatisation of MAHB?
A: They will enable faster decision-making regarding capex and investments.
Q: What are the benefits of privatising MAHB?
A: Privatising MAHB will enable the company to invest and expand Malaysia’s aviation capabilities, driving economic growth and passenger and cargo growth in all airports.