KUALA LUMPUR (June 4): Malaysia Airports Holdings Bhd (MAHB) has outlined plans to spend more than RM11 billion on capital expenditure over the next five years as the airport operator unveiled a broad infrastructure upgrade programme following its privatisation last year.
In a statement on Thursday, MAHB said the investment pipeline spans capacity expansion, asset renewal, technology upgrades, passenger experience improvements and sustainability initiatives across its airport network.
According to MAHB, the planned expenditure will support airport development projects nationwide, including expansion works at the Kuala Lumpur International Airport (KLIA), Penang International Airport and Kota Kinabalu International Airport, alongside infrastructure renewal and technology modernisation efforts.
Unveiled during MAHB’s inaugural procurement and project showcase, the plan also includes a long-term KLIA Development Plan, which is intended to accommodate future passenger growth beyond 100 million travellers annually.
MAHB also highlighted the ongoing expansion of Penang International Airport, which is expected to raise the airport’s annual handling capacity to 12 million passengers from 6.5 million currently.
In Sabah, proposed upgrading and expansion works at Kota Kinabalu International Airport aim to increase annual passenger capacity to 12 million from nine million.
Beyond capacity additions, MAHB said it plans to undertake engineering asset replacement programmes, pavement rehabilitation works and upgrades to utilities and other critical infrastructure across its network.
The group is also looking to improve passenger movements, including terminal reconfiguration works, traffic flow enhancements, baggage handling system upgrades and improvements to airport facilities.
“Through this platform, we wanted to provide clearer visibility into where the opportunities are heading so that contractors, suppliers, and partners can prepare earlier and scale their capabilities with greater confidence,” said Malaysia Airports managing director Datuk Mohd Izani Ghani during his speech at the inaugural showcase.
MAHB’s investment plans come more than a year after a consortium comprising Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority (ADIA) succeeded in taking MAHB private.
The consortium, operating through Gateway Development Alliance Sdn Bhd, announced the privatisation proposal in May 2024 and formally launched its RM11 per share offer in November that year.
It became one of Bursa Malaysia’s most closely watched corporate exercises, attracting debate over valuation and concerns surrounding foreign participation in strategic national infrastructure.
Following the privatisation, Khazanah, via UEM Group Bhd, emerged as MAHB’s largest shareholder with a 40% stake, while the EPF holds 30%, GIP owns 25% and ADIA controls the remaining 5%. The Malaysian government retains a special share. MAHB was delisted in February 2025.
MAHB said the five-year RM11 billion investment plan marks the first major indication of how the airport operator intends to operate after its privatisation, with attention now turning to the pace of project execution and whether the investments can address long-standing infrastructure and service issues, particularly at KLIA.