PETALING JAYA: The government has agreed to give Malaysia Airports Holding Bhd (MAHB) a 50-year extension of lease to operate and maintain 39 airports nationwide.
The transport ministry said the decision was approved by the Cabinet on April 5.
It said two earlier operating agreements signed between MAHB and the government in 2009 were now void, and will be replaced with four new agreements covering KLIA, as well as separate agreements for airports in the peninsula, Sabah and Sarawak.
MAHB group CEO Raja Azmi Raja Nazuddin welcomed the decision, saying it was a sign of the government’s confidence in them.
“We are fully committed to continue developing Malaysia as a strong aviation hub within the region.”
Explaining the additional agreements to cover Sabah and Sarawak, Raja Azmi said this was based on the clustering of airports to ensure better management according to regions.
“The framework of the new agreements will also provide greater flexibility to MAHB in undertaking the necessary development projects or initiatives aimed at improving airport infrastructure and services while providing the government with better revenue,” he said in a statement.
MAHB is one of the world’s largest airport operators in terms of passenger numbers. Apart from the 39 airports in Malaysia, it also operates an international airport in Istanbul.
The company is listed on the main board of Bursa Malaysia.