MAHB share sale will not affect national security - Transport Ministry

The Transport Ministry views the sale of shares in Malaysia Airports Holdings Bhd (MAHB) as not affecting security, based on the commitment and cooperation between the Civil Aviation Authority of Malaysia (CAAM), MAHB, and the police to ensure that security aspects are at the highest level.

The ministry also emphasised that the government is not selling MAHB shares; instead, government-linked investment companies (GLICs) such as the Employees Provident Fund (EPF) and Khazanah Nasional Bhd subsidiary, UEM Group Bhd, will collectively raise their MAHB shareholding to 70 percent from 41 percent.

“MAHB will remain operational as a strategic asset of the country, post-privatisation.

“MAHB’s role remains limited to the operation of airports under its jurisdiction, with all 39 airports in Malaysia remaining under government ownership, as stipulated in the operating agreement,” the ministry said in a written response to Dewan Rakyat.

It was published on the Parliament website in response to Mohd Nazri Abu Hassan (PN-Merbok) on how the share sale will affect national security and sovereignty, considering that MAHB manages Malaysia’s airports.

Nazri also asked about the ministry’s measures to ensure that control over important assets such as Kuala Lumpur International Airport (KLIA) is not compromised by external interests.

In a response, the Transport Ministry said Malaysia's sovereignty and interests will continue to be safeguarded, as the consortium is led by GLIC companies via a 70 percent majority shareholding.

‘Golden share’

Additionally, the government, via the Minister of Finance (Incorporated), will have a special or golden share in MAHB.

As MAHB's special shareholder, it has the right to appoint directors, including a chairperson and a managing director, to ensure that all strategic decisions made by the consortium align with national interests, the ministry said.

“As a sovereign country, Malaysia’s entry points, including airports, are strictly regulated by national enforcement agencies,” it added.

The Transport Ministry also said airports in Malaysia are designated as restricted areas under Sections 4 and 5 of the Restricted Areas and Places Act 1959 (Act 298).

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Airports are also listed as critical infrastructure by the Central Committee on critical infrastructure, which is chaired by the Home Ministry's secretary-general.

In line with this, the Transport Ministry via CAAM ensures that those involved in the aviation industry comply with the standards set by the International Civil Aviation Organization (ICAO) to prioritise passenger safety, covering various safety measures related to airports, aircraft operations, passengers, cargo, baggage, and staff.

CAAM has, at the same time, intensified its enforcement actions and standards compliance by increasing periodic audits and inspections to prevent untoward incidents involving air transport.

"These enforcement actions and standards compliance are to ensure that aviation industry stakeholders, including MAHB and Senai Airport Services Sdn Bhd, work together with relevant parties like the police to comply with the established regulations and standards," it said.

CAAM conducts yearly audits on MAHB to ensure compliance with regulations and safety standards set by CAAM and ICAO.

The agency also conducts regular and random safety audits to assess and improve all airport safety aspects according to the existing regulations and directives, the ministry added.

- Bernama

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