KUALA LUMPUR (July 1): Khazanah Nasional Bhd has welcomed the Public Accounts Committee's (PAC) recommendations regarding Malaysia Airports Holdings Bhd (MAHB), saying many of them align with measures that have been put in place or are now being reinforced to improve the airport operator's performance, stakeholder engagement, oversight and service quality.

In a statement, Khazanah said the recommendations also reinforced the objective guiding the privatisation of the airport operator.

"The objective of taking MAHB private was about creating the conditions for long-term transformation by enabling sustained investment, operational excellence and continuous improvement across Malaysia's airport network. Stronger airports and connectivity are critical enablers of trade, investment, tourism and business activity, and play an important role in strengthening Malaysia's economic competitiveness in an increasingly competitive region," said Khazanah managing director Datuk Amirul Feisal Wan Zahir.

“The task ahead for MAHB is significant and lasting transformation will take time. We are encouraged by MAHB's commitment to learn from global best practices and leverage international expertise, while pursuing continuous improvement with discipline and consistency.

"We are already seeing improvements in the passenger experience, but delivering the broader economic benefits will require sustained investment, strong execution and close collaboration across the aviation ecosystem,” he said.

Meanwhile, MAHB continues to operate within the governance and regulatory framework, with oversight by relevant authorities and mechanisms to monitor performance, service quality and major capital projects.

"As a shareholder, Khazanah supports the PAC’s recommendations, including those on enhanced reporting structures, and remains committed to upholding high standards across the board, from procurement and project delivery to performance tracking and integrity," Amirul said.

The sovereign wealth fund also pledged to continue working closely with the airport operator, regulators, airline partners and other stakeholders to enhance Malaysia's airport network, reinforce national connectivity, and deliver lasting value for the country.

The statement came after the PAC tabled its report on its early asssessment of the privatisation of MAHB in the Dewan Rakyat on Wednesday. The report, which followed 19 separate proceedings and a site visit to Kuala Lumpur International Airport (KLIA) Terminal 1, included several key recommendations from the committee.

Chief among them was that the combined shareholdings of Khazanah and the Employees Provident Fund in MAHB must be maintained at a minimum of 70%, and that any future equity structure changes must be subject to Cabinet approval through a transparent process.

The committee also urged MAHB to tighten its procurement and contractor vetting systems in collaboration with the Malaysian Anti-Corruption Commission and the country's primary antitrust and trade watchdog Malaysia Competition Commission to eradicate "contractor cartels". It should also have regular progress and cash flow reports tabled to Parliament on high-impact projects, such as its aerotrain replacement, baggage handling system and airport expansions, for continuous oversight.

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