Malaysia Airports Holdings Bhd (MAHB) accelerated its transformation after privatisation in March 2025, focusing on governance, project delivery, and strengthening internal capabilities to improve airport operations nationwide [1]. The company has implemented capital allocation improvements, procurement system reforms, and reviewed operating models to boost effectiveness and capabilities [1].
The Kuala Lumpur International Airport (KLIA) aerotrain resumed 24-hour operations in July 2025 following an upgrade but still experienced some service disruptions, according to Malaysia’s Public Accounts Committee (PAC) [1, 2]. Passenger throughput improved notably with a pilot of centralised security screening at KLIA Terminal 2 doubling throughput to 500 passengers per hour [1]. KLIA passenger traffic grew 11% in 2025 to 63.4 million passengers, a sign of recovery and growth in air travel [1].
MAHB added 15 new airlines and 40 new international services in 2025. During the first half of 2026, eight additional airlines and 23 new international routes were introduced, expanding connectivity to destinations including Shanghai, Jinan, Hong Kong, and Algiers, served by carriers such as Air Algérie and Hainan Airlines [1].
The PAC conducted 19 proceedings and site visits reviewing MAHB operations, transformation efforts, and project delays such as the baggage system upgrade still underway [2]. PAC chairman Datuk Mas Ermieyati Samsudin called for tighter procurement and contractor vetting involving agencies like MACC, CAAM, and MyCC to prevent contractor incompetence and cartel practices. She emphasized, "This will ensure the failure of facilities and services (roof leakages, broken toilets, passenger loading bridges) do not happen again" [3].
PAC urged regular, transparent reporting on operational performance and financial progress for major projects. The committee also called for government oversight to remain strong, recommending that future ownership changes or disposal of key assets require Cabinet approval via a transparent process [2, 4, 3]. PAC recommended Malaysia’s airports remain under government control through majority shareholding by federal investment entities Khazanah Nasional and the Employees Provident Fund (EPF), targeting a combined stake of no less than 70% [4, 3].
Former independent MAHB directors and the ex-CEO opposed privatisation, believing MAHB could internally rejuvenate assets leveraging its AAA credit rating and flexibility under the March 2024 Operating Agreement. They believed privatisation was unnecessary for financing or revitalization [5, 6, 7]. In contrast, Khazanah Nasional and EPF supported privatisation to break bureaucratic inertia and speed decision-making [5, 6, 7]. Datuk Mas Ermieyati noted, "The former independent directors and former MAHB CEO were confident that MAHB was capable of rejuvenating its assets internally" [5].
Khazanah managing director Datuk Amirul Feisal Wan Zahir said the transformation process will take time and requires disciplined execution and collaboration. He stated, "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" [8]. Khazanah welcomed PAC’s recommendations, noting many align with their current actions to improve MAHB’s performance and oversight [8, 4].
The PAC tabled its report on July 1, 2026, with eight formal recommendations aimed at strengthening oversight and controls at MAHB [2, 8, 4, 3]. The report called for periodic detailed post-privatisation performance reports from MAHB to enhance transparency and accountability [5, 6, 7].
