KUALA LUMPUR (July 1): The Parliamentary Public Accounts Committee (PAC) has called for stronger oversight of Malaysia Airports Holdings Bhd (MAHB) following its privatisation.
The bipartisan committee, which released its report after 19 proceedings and a site visit to KLIA Terminal 1, said MAHB must continue to be closely monitored as airports remain strategic national assets. The inquiry examined KLIA’s operational performance, transformation initiatives and delays involving key infrastructure projects such as the Aerotrain service and baggage handling system.
While MAHB’s privatisation was intended to improve decision-making and accelerate transformation, the PAC recommended additional reporting requirements to maintain transparency. It urged MAHB to publish regular operational and service performance reports based on clear key performance indicators (KPIs), with progress and financial updates on major projects submitted to the Ministry of Finance (MOF), Ministry of Transport (MOT), Civil Aviation Authority of Malaysia (CAAM) and the PAC.
The committee also called for MAHB to work with government agencies and airlines to develop a long-term airport development plan, including the establishment of a regular consultative body with key airlines such as Malaysia Aviation Group, AirAsia and Batik Air. This would allow airline input, particularly on “below-wing operations” such as ground handling services, to be incorporated into airport planning.
The PAC highlighted that years of insufficient maintenance, delayed corrective actions and limited capital investment had contributed to declining service quality at major airports. It pointed to ongoing issues involving the Aerotrain upgrade, which was completed in July 2025 but continues to face disruptions, while the baggage handling system upgrade remains in progress.
The committee also urged MAHB to strengthen procurement oversight with agencies including the Malaysian Anti-Corruption Commission (MACC), CAAM and Malaysia Competition Commission (MyCC) to address contractor performance issues and prevent recurring service problems.
The PAC confirmed that MAHB’s privatisation process complied with existing regulations but emphasised that stronger monitoring mechanisms are needed to ensure airport operations and future investments continue to serve national interests.
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