No foreign ownership, govt to retain full control of MAHB, says Finance Ministry

KUALA LUMPUR: The government will retain full control of Malaysia Airports Holdings Bhd (MAHB), says Datuk Seri Amir Hamzah Azizan.

"The management of MAHB will not be taken over by foreigners. MAHB will continue to be controlled by the government, in terms of ownership, management and security aspects," the Finance Minister II said during his ministry's explanation in the Parliament special chambers on Wednesday (July 3).

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He said a consortium of companies, led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF), will acquire the remaining 59% stake in MAHB, which is owned by various investors.

He said the intention is to delist MAHB and for the consortium to have 100% ownership of MAHB.

"This means the consortium is not selling its stake but is instead buying MAHB shares.

"Hence, the issue of Khazanah selling MAHB's shares to foreign investors does not arise," he said.

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"The government will continue to hold 'golden shares' in MAHB. Based on its rights as the golden shareholder, it has the authority to appoint the chairman and managing director of MAHB, both of whom must be Malaysian citizens," he said.

The government will also continue to have a representative in the MAHB board of directors.

He said the exercise was a strategic move necessary to ensure that Malaysia will not be left behind in the aviation sector.

The other parties in the consortium are New York-based Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority (Adia). The two companies will own a 30% stake while Khazanah-EPF will own 70% when the takeover is completed.

Amir Hamzah said GIP is only involved as an investor and technical partner, providing advice and sharing expertise to improve the airport's efficiency.

“The allegations that foreigners will take over the country's airports are untrue. All airports will continue to be owned by the government, and MAHB will (continue) its role as an airport operator,” he said.

Security will continue to be the purview of Malaysian authorities, including the Immigration Department, police, and the Malaysian Quarantine and Inspection Services Department (Maqis).

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“Entry and exit of foreigners remain will continue to be the responsibility of the Immigration Department without the interference of outsiders,” he said.

“With the consortium, the rejuvenation of the country’s airports can be implemented immediately,” he said, adding that the consortium could fulfil the RM10bil investment needed for the next five years given its solid financial footing.

“The MAHB’s main priority is for the country’s airports to reach global status and remain competitive on the international stage,” he said while adding that this is necessary to resolve all issues related to airports.

Amir said that although Malaysia would not stop companies from any country from investing in Malaysia, no Israeli companies can invest here.

In January, it was announced that GIP was being acquired by BlackRock. The transaction is expected to be completed in the third quarter of this year.

BlackRock has been criticised by Perikatan Nasional politicians due to the former’s significant investments in Israel.

GIP issued an official statement stating that Blackrock would not be involved in managing the airports under MAHB.