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Malaysia Airports Holdings Berhad

  • Type: 30 Million +

Favourable Operating Agreements Drive Sustainable Growth And Elevated Services For Nation’s Airports

Malaysia Airports (the Group) and the Government of Malaysia (GoM) officially inked new Operating Agreements (OAs), entrusting the Group with the continued role of operating, managing, maintaining, and developing 39 airports and STOLports for the next 45 years, extending until 11 February 2069. These agreements, executed through two distinct operational frameworks i.e the OA for KL International Airport (KLIA) and the OA for Designated Airports, signify a significant step towards driving sustainable growth and elevating services across the nation’s airports.

The new OAs offer the Group flexibility to pursue strategic investments essential for enhancing airport capacity, facilities, and infrastructure, thereby elevating overall service standards. With favorable commercial terms and a transparent investment return mechanism, these agreements foster a balanced and sustainable development path for the Group and its airport network which plays a vital role as an economic development catalyst for Malaysia.

The Acting Group Chief Executive Officer of Malaysia Airports, Mohamed Rastam Shahrom said, “The operating agreements reaffirm the confidence in the established airport network framework and cross-subsidy model that has effectively served us over the years. Malaysia Airports remains committed to ensuring the highest standards of airport operations and services, and continues to enable vital connectivity across Malaysia, spanning both urban hubs and rural communities.”

“Furthermore, the new terms grant the Group the flexibility to strategically invest in airport development and modernisation as needed, alleviating any financial burden on the Malaysian Government. This is facilitated by the capital return mechanism delineated within the agreements,” he added.

Malaysia Airports plays a crucial role as one of the foremost contributors to driving the country's economy. To date, the Group’s contributions total approximately RM42.9 billion, encompassing various aspects such as airport development costs, user fee payments to the Government, dividend payments to shareholders, tax and zakat payments, among others.

Also present at the signing were Minister of Transport Malaysia, Loke Siew Fook, Secretary General Ministry of Transport Malaysia, Dato’ Jana Santhiran Muniayan, MAVCOM Executive Chairman, Datuk Seri Hj. Saripuddin Hj. Kasim and Malaysia Airports Chairman, Tan Sri Zainun Ali.

“Being entrusted to continue operating our network of 39 airports across the country enables Malaysia Airports to not only facilitate travel, but to also position our airports as pillars of progress, contributing to our nation’s economic growth and development,” said Tan Sri Zainun.