Malaysia

MOT assures sale of MAHB shares will not affect national security

The Employees Provident Fund (EPF) and UEM Group Bhd, a subsidiary of Khazanah Nasional Bhd, will increase their stake in MAHB from 41 percent to 70 percent.

Updated 1 year ago · Published on 21 Feb 2025 1:29PM

MOT assures sale of MAHB shares will not affect national security
The government will ensure that all 39 airports under MAHB's jurisdiction remain government-owned. – February 21, 2025

THE Ministry of Transport (MOT) has assured the public that the sale of shares in Malaysia Airports Holdings Bhd (MAHB) will not impact the country’s security.

The ministry stressed that the Civil Aviation Authority of Malaysia (CAAM), MAHB, and the Royal Malaysian Police (PDRM) are working together to uphold the highest security standards across the country’s airports.

In response to questions raised by Mohd Nazri Abu Hassan (PN-Merbok) in the Dewan Rakyat, the MOT clarified that the government itself is not selling MAHB shares.

Rather, government-linked investment companies (GLICs), including the Employees Provident Fund (EPF) and UEM Group Bhd, a subsidiary of Khazanah Nasional Bhd, will increase their stake in MAHB from 41 percent to 70 percent.

"MAHB will continue to serve as a strategic asset for the nation even after the shareholding changes," the ministry explained in its written response. "The government will ensure that all 39 airports under MAHB's jurisdiction remain government-owned, as outlined in the operating agreement."

The MOT said the sovereignty and security of Malaysia will be fully protected, as the majority control of MAHB (70 percent) will remain with the GLICs. In addition, the Ministry of Finance (Incorporated) (MKD) will hold a special or "golden" share in MAHB, ensuring the government retains significant influence over key decisions.

As part of its role, MKD has the authority to appoint directors, including the chairman and managing director, ensuring that strategic decisions align with national interests.

The ministry reassured that Malaysia's sovereignty and critical infrastructure, such as airports, remain secure under strict regulation.

Airports in Malaysia are classified as restricted areas under the Restricted Areas and Places Act 1959 (Act 298), and are considered critical infrastructure by the Central Committee on Critical Infrastructure (JPSP), which is chaired by the Secretary-General of the Home Ministry.

Regarding national security concerns, the MOT reaffirmed that CAAM, as the regulatory authority, ensures that all aviation industry players adhere to international safety standards set by the International Civil Aviation Organization (ICAO).

This includes overseeing the safety and security of airport operations, passengers, cargo, baggage, and staff.

To safeguard aviation security, CAAM has also enhanced its oversight, conducting more frequent audits and inspections to ensure compliance with safety regulations. These actions involve close collaboration between CAAM, MAHB, Senai Airport Services Sdn Bhd (SATSSB), and enforcement agencies such as PDRM.

"CAAM conducts annual audits on MAHB to ensure adherence to ICAO and local regulations, and it also carries out random safety audits to maintain high safety standards across all airports," the MOT added. – February 21, 2025

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