Sale of MAHB strategic assets should require cabinet approval – PAC

The Public Accounts Committee (PAC) has recommended that the local shareholding in Malaysia Airports Holdings Bhd (MAHB) held by Khazanah Nasional Berhad and the Employees Provident Fund (EPF) be maintained at a minimum of 70 percent.

PAC chairperson Mas Ermieyati Samsudin said this is to ensure that the nation's strategic control over the management of public airports remains protected.

“To maintain the country's strategic control, the combined local shareholding under Khazanah and EPF must be kept at a minimum of 70 percent level.

“Any changes to the equity ownership structure or future decisions to sell strategic MAHB assets must transparently obtain approval from the cabinet,” she said at a press conference in the Parliament building today.

Mas Ermieyati, who is also the Masjid Tanah MP, said the recommendation was among eight main proposals submitted by the PAC after conducting proceedings regarding the management of public airports under the Transport Ministry, Finance Ministry, and MAHB.

According to her, the investigation was conducted under the PAC's own jurisdiction, not based on the Auditor-General's Report, to answer the public’s questions regarding the MAHB privatisation process, governance after privatisation, passenger flow management, and the company's operational transformation plan.

19 proceedings held

Mas Ermieyati said a total of 19 proceedings were held between Feb 17 and Aug 20, 2025, calling various witnesses, including representatives from the Finance Ministry, Transport Ministry, Khazanah, EPF, MAHB, airlines, Bursa Malaysia, and the Securities Commission.

She said the PAC found that the decline in airport service quality stemmed from a failure to implement planned maintenance and restoration over many years, as well as a lack of capital investment, causing many assets and infrastructure to deteriorate.

She said although MAHB is now a private entity, the committee recommended that the Transport Ministry and the Civil Aviation Authority of Malaysia (CAAM) compel the company to periodically publish operational performance reports and key performance indicators (KPI) to the public to maintain public accountability.

In addition, she said, the Finance Ministry and Transport Ministry must direct MAHB to submit physical progress and cash flow reports for high-impact projects such as the Aerotrain, baggage handling system (BHS), and airport expansions.

“The performance and progress reports of critical MAHB capital projects must be presented periodically in the Dewan Rakyat and submitted to the PAC to enable continuous parliamentary checks and balances to be carried out,” she said.

Mas Ermieyati said the PAC also recommended that MAHB tighten procurement procedures and the contractor vetting system in cooperation with the MACC, CAMM, and the Malaysia Competition Commission to eliminate incompetent “cartel contractors”.

She said the PAC has not yet been able to fully evaluate the implementation of the transformation after privatisation because the process is still in its early stages.

“We have not yet received a detailed report because what we are doing is still in the early stages of the privatisation. That is why we state that progress reports need to be provided periodically to the PAC so that all expenditures can be monitored transparently and cost leakages do not occur,” she said.

She added that the PAC also conducted a surprise visit to KLIA Terminal 1 early last month and found slight physical improvements, but the committee is still awaiting the full implementation of the development plan designed by MAHB.

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