A DAP MP today said that Malaysia Airports Berhad (MAHB) might resort to increasing airport and passenger taxes to make up cost overruns of KLIA2's construction, which has slashed MAHB's profits immensely.

 

Petaling Jaya Utara MP Tony Pua pointed out that MAHB's first financial report since the RM4 billion airport started operations, showed that the airport operator's profits plunged a huge 98.6 percent to only RM1.61 million.

 

"As earnings and cash flow decline sharply for the airport operator, it is clear that MAHB will appeal to the government to approve massive increases in airport and passenger taxes.

"The government in return, would be hard pressed not to approve the hike to bail out MAHB," Pua said during a press conference at the Parliament lobby today.

"Without these price hikes, it is clear from the warning provided by MAHB's latest quarter financial reports, the company will not be able to fulfill its debt obligations when they become due starting 2023," he added.

Gov't: We'll never allow tax hike

Pua said that the steep profit decline was proof that the "chickens have come home to roost."

"The borrowing spree (for KLIA2) hence caused substantially higher financing cost for MAHB," he said.

He said that the burden of the cost overrun will be shifted to Malaysians.

In immediate response, Transport Minister Liow Tiong Lai brushed off the claims as mere "speculation".
"No, no such proposal and requests came to me," he said when met at the Parliament lobby.
Asked if the government will agree to an increment if a proposal is made he said:

"We will never allow the increment of charges."