70% controlling shares Khazanah & EPF determined the direction of MAHB

KUALA LUMPUR Oct 5 – While Global Infrastructure Partners’s (GIP) entry is seen as a significant development, the infrastructure giant is expected to adopt a non-interventionist approach to MAHB's daily operations, according to Phil Iley, GIP’s head of transport and a director of Gateway Development Alliance (GDA).
 

Iley was recently quoted by the local news agency Bernama.
 

GIP is not expected to interfere with the daily operations of Malaysia Airports Holdings Bhd (MAHB) after acquiring a 30 per cent stake in it together with Abu Dhabi Investment Authority (ADIA), analysts said.

Khazanah Nasional Bhd and the Employees Provident Fund (EPF) will continue to play a significant role in MAHB’s operations and strategic decisions as they still hold the majority stake.
 

GDA is a consortium that includes GIP and other strategic partners, formed to manage and develop infrastructure projects, such as the acquisition and improvement of MAHB.
 

Analysts suggest this acquisition will reinforce MAHB’s operational stability, keeping its strategic direction aligned with national interests.

Malaysia remains in control of MAHB, as Khazanah Nasional Bhd and the Employees Provident Fund (EPF) maintain the majority stake. This ensures local leadership and decision-making remain intact, safeguarding key infrastructure assets under national ownership.
 

The Government of Malaysia will retain special share rights in MAHB and the Chairman and CEO will continue to be Malaysian citizens.

Shan Saeed, Chief Economist at Juwai IQI Global, emphasized the positive economic implications of GIP’s involvement, noting that its global reach could significantly boost international investment in Malaysia’s infrastructure projects.
 

"Malaysia’s focus on upgrading infrastructure, from transportation to renewable energy, aligns perfectly with GIP’s expertise. This positions GIP as a pivotal player in attracting foreign capital to these sectors," Shan told DagangNews.com here today.
 

He also highlighted the potential for job creation and economic acceleration that could result from this partnership, as Malaysia pursues its developmental goals.

GIP’s focus on sustainable infrastructure investment aligns with Malaysia’s green agenda, particularly in areas such as clean energy, smart cities, and digital infrastructure.

"Its commitment to sustainability could drive new momentum for green investment opportunities in Malaysia, enhancing the country’s progress towards its environmental and developmental objectives," Shan added.
 

Through its involvement with MAHB, GIP has become a critical partner for Malaysia’s infrastructure development.
 

Upon full completion of the Offer, Khazanah will be increasing its ownership in MAHB from 33.2% to 40% and EPF from 7.9% to 30%.
 

Collectively, Malaysian investors would own 70% of MAHB. ADIA and GIP will hold the remaining 30%.
 

Malaysia, holding 70% of the consortium, ensures that key decisions—such as the appointment of the Chairman and CEO—remain firmly in local hands.
 

This strong local leadership ensures that the country’s interests are well-represented, even as it engages with global partners like GIP.

Dr. Oh Ei Sun, Senior Fellow at the Singapore Institute of International Affairs, highlighted GIP’s long-standing commitment to infrastructure development and how it could benefit Malaysia.
 

"GIP has a proven track record in managing large-scale infrastructure projects globally. Their expertise will be valuable in helping Malaysia improve its infrastructure while ensuring local interests are upheld," Dr. Oh stated.
 

He further emphasized the significance of the partnership, adding, "With GIP’s involvement, Malaysia is not only gaining access to global capital but also to world-class project management capabilities, which can elevate the country’s infrastructure standards."
 

A key background to this partnership is BlackRock’s recent acquisition of GIP. While BlackRock’s involvement is more of a financial boost, GIP’s role as a global infrastructure expert remains the central driver of strategic developments.
 

This acquisition is expected to enhance GIP’s capacity to manage and fund large-scale infrastructure projects, further positioning Malaysia as a hub for international investments.
 

The broader implications of GIP’s presence in Malaysia’s infrastructure sector extend beyond MAHB. Local companies could find new opportunities to collaborate on large-scale projects, fostering a competitive environment that stimulates innovation and growth.
 

Shan believes this collaboration could reshape policy frameworks to encourage long-term investments, enhancing Malaysia’s attractiveness to international investors.

Emeritus Professor Dr. Barjoyai Bardai from Tun Abdul Razak University (UNIRAZAK) also weighed in on GIP’s global infrastructure strategy.
 

He emphasized the importance of long-term projects with reliable returns. "Malaysia needs to be proactive in protecting its key assets, ensuring that strategic resources remain under local control while capitalizing on the benefits of international partnerships like that with GIP," he said.
 

As GIP strengthens its role in Malaysia’s infrastructure landscape, it brings extensive global experience and a commitment to sustainability that can serve as a catalyst for the nation’s growth. This partnership opens new avenues for investment and development, positioning Malaysia as a key player in the region’s infrastructure evolution.
 

Overall, GIP’s acquisition reinforces Malaysia’s infrastructure sector, fostering sustainable development, boosting international investment, and creating a more resilient economy. - DagangNews.com