Long queues, leaky ceilings

Can new investors pilot Malaysia’s main airport up the rankings?

- Zunaira Saieed

Malaysia Airports Holdings Berhad (MAHB) is bringing on board new investors by the end of 2024 in an attempt to address the creaky facilities and dwindling airline connectivity at Kuala Lumpur International Airport (KLIA).

While some have welcomed the injection of funds and expertise that could steer Malaysia’s main gateway back on course, experts remain sceptical on whether these initiatives can give enough lift for KLIA to catch up with its regional counterparts.

Under a RM12.3 billion (S$3.5 billion) deal that will be completed by end-2024 and will take the listed airport operator private, US-based investment fund Global Infrastructure Partners (GIP) and the United Arab Emirates’ biggest sovereign wealth fund, Abu Dhabi Investment Authority, will emerge with a combined 30 per cent stake in MAHB.

These two foreign stakeholders are part of the Gateway Development Alliance (GDA) consortium that will acquire MAHB. The consortium also comprises two of MAHB’s existing local investors – sovereign wealth fund Khazanah Nasional and state pension fund Employees Provident Fund – that together will have an increased stake of 70 per cent in the airport operator after the exercise.

A key transit hub that was once ranked second-best airport in the world in 2001, KLIA has been slipping down the Skytrax global airport rankings since 2013. In 2024, it fell another four spots to rank 71st, from 67th in 2023.