Company Overview

• Malaysia Airports Holdings Berhad (MAHB) is a leading investment holding company specialising in the management, operation, maintenance, and development of airports. Established in 1992 and publicly listed on Bursa Malaysia in 1999, MAHB was the first Asian airport operator to go public. The company operates both aeronautical and non-aeronautical services, including aircraft landing and parking fees, passenger service charges, retail operations, and commercial leasing.
• MAHB manages a network of 39 airports across Malaysia, comprising 5 international airports, 17 domestic airports, and 17 Short Take-Off and Landing Ports (STOLports). Additionally, MAHB owns and operates Istanbul Sabiha Gökçen International Airport (SAW) in Turkey, further extending its global presence.
• In 2023, MAHB recorded a revenue of RM4.91 billion, marking a 57.2% increase from RM3.13 billion in 2022. Net profit also surged to RM543.2 million from RM187.2 million in the previous year. Passenger movements totalled 119.5 million, reaching 84.6% of 2019 levels, while Istanbul Sabiha Gökçen Airport recorded 37.6 million passengers, exceeding 2019 figures by 4.5%.
• MAHB has secured long-term operating agreements, extending its management of Malaysian airports until 2069. The company continues to invest in infrastructure upgrades, including the replacement of the Aerotrain and Baggage Handling System at Kuala Lumpur International Airport (KUL), while also focusing on attracting new airlines and expanding connectivity.
• As part of its sustainability commitment, MAHB aims to achieve net-zero carbon emissions by 2050. Community initiatives such as MyAirportCARES have positively impacted over 4,000 students through education and welfare programs.
• Looking ahead, MAHB remains focused on enhancing passenger experience through technology and infrastructure investments, strengthening Malaysia’s position as a global aviation hub, and balancing profitability with sustainability and corporate social responsibility.

Key Strategic Priorities

Enhancing Passenger Experience

Malaysia Airports Holdings Berhad (MAHB) is committed to improving the overall passenger journey by integrating technology and infrastructure enhancements to optimise efficiency and convenience.

• Leverage Digitalisation to Enhance Airport Operations and Service Delivery
  • MAHB is implementing a cloud-based multi-airport Flight Information Display System (FIDS) and Resource Management System (RMS) to optimise airport resource allocation and streamline passenger movement. These digitalisation initiatives are part of MAHB’s broader strategy to create a fully integrated digital ecosystem, aiming to provide a seamless passenger journey through the use of business intelligence and big data.
• Upgrade Existing Infrastructure to Provide Seamless Connectivity and Comfort for Travelers
  • In 2024, MAHB recorded a total of 36.1 million passenger movements in the third quarter, representing a year-on-year increase of 10.6% compared to 32.6 million passengers in the same period in 2023. This performance is nearing pre-pandemic levels, reaching 97.7% of the passenger traffic recorded during the same period in 2019. Notably, international passenger numbers have surpassed 3Q19 levels by 7.4%, with 18.9 million passengers. In contrast, the domestic sector experienced more modest growth, recording 17.2 million passengers and achieving 88.9% of the levels recorded in 2019. The improved traffic performance was largely driven by international passenger movements, the introduction of new airlines and routes, visa exemptions for travelers from China and India, and the steady increase in air travel demand.

Initiatives Include:

• Digitalisation Initiatives: Implementation of a cloud-based multi-airport Flight Information Display System (FIDS) and Resource Management System (RMS) to optimise airport resource allocation and streamline passenger movement. These systems are designed to enhance operational efficiency by providing real-time data and analytics, enabling proactive decision-making and improving the overall passenger experience.
• Infrastructure Upgrades: Replacement of the aging Aerotrain system and enhancement of the Baggage Handling System at Kuala Lumpur International Airport (KUL) to minimise delays and improve passenger experience. These upgrades are part of MAHB’s commitment to providing seamless connectivity and comfort for travelers, ensuring that the airport’s infrastructure can accommodate increasing passenger volumes and meet evolving passenger expectations.

By focusing on these strategic initiatives, MAHB aims to enhance passenger satisfaction, increase operational efficiency, and strengthen its position as a leading airport operator in the region.

Expanding Connectivity

Malaysia Airports Holdings Berhad (MAHB) is committed to strengthening Malaysia’s aviation network by increasing airline partnerships and expanding air routes to enhance global and regional connectivity.

• Attract New Airline Partners and Enhance Existing Relationships to Expand Air Traffic
  • In 2024, MAHB successfully attracted 12 new airlines, including Air Macau, Iraqi Airways, Turkmenistan Airlines, Cambodia Airways, Qingdao Airlines, AirAsia Cambodia, Loong Air, and Air India, all operating from Kuala Lumpur International Airport (KLIA). This expansion contributed to a significant increase in passenger traffic, with MAHB’s network accommodating 73 foreign carriers and six local carriers, serving 138 international and 31 domestic destinations.
• Develop New Routes to High-Growth Markets to Bolster Malaysia’s Standing as a Key Aviation Hub
  • MAHB has been proactive in developing new routes to emerging markets. In 2024, KLIA introduced direct flights to destinations such as Almaty, Ashgabat, Baghdad, Chiang Rai, Lam Dong, Labuan Bajo, Jaipur, Nairobi, Nanjing, and Vientiane. These new connections are expected to drive tourism and business travel, reinforcing Malaysia’s position as a key aviation hub.

Initiatives Include:

• Route Development: MAHB is actively engaging with international and regional airlines to introduce new direct routes, particularly to emerging markets, to drive tourism and business travel. The addition of new airlines and destinations reflects growing confidence in Malaysia as a hub for tourism and business travel.

By focusing on these strategic initiatives, MAHB aims to enhance passenger satisfaction, increase operational efficiency, and strengthen its position as a leading airport operator in the region.

Sustainability Commitment

As part of its long-term environmental strategy, Malaysia Airports Holdings Berhad (MAHB) is implementing sustainable practices to reduce its carbon footprint and contribute to global climate goals.

• Align with International Environmental Standards by Committing to Net-Zero Carbon Emissions
  • In 2023, MAHB launched its Environmental Masterplan 2.0, outlining policies, targets, and roadmaps from 2023 to 2030. This plan aligns with the Twelfth Malaysia Plan and underscores MAHB’s commitment to achieving net-zero carbon emissions by 2050, in accordance with the Paris Agreement.
• Invest in Renewable Energy and Eco-Friendly Solutions to Reduce Overall Energy Consumption
  • MAHB has been proactive in enhancing energy efficiency across its airports. Supported by its Energy Policy, the company has implemented initiatives that have improved electricity consumption efficiency since 2016. Despite a 6.93% year-on-year increase in total electricity consumption across all airports in 2018 compared to 2017, MAHB managed to reduce electricity consumption per passenger from 5.68 kWh/passenger in 2016 to 5.30 kWh/passenger in 2018.

Initiatives Include:

• Net-Zero Carbon Emissions by 2050: MAHB has pledged to achieve net-zero carbon emissions by 2050, aligning with the 12th Malaysia Plan and the Paris Agreement. The Environmental Masterplan 2.0 sets interim targets, including a 25% reduction in CO₂ emissions for Kuala Lumpur International Airport (KUL) and a 15% reduction for Malaysia Airports Sdn. Bhd. (MASB) airports by 2026.
• Renewable Energy Initiatives: MAHB is expanding its renewable energy capacity, particularly through solar power installations. The company continues to support Malaysia’s renewable energy agenda by producing solar power at KUL, contributing to its goal of reducing CO₂ emissions.

By implementing these initiatives, MAHB not only aligns with global environmental standards but also positions itself as a leader in sustainable airport operations. These efforts are crucial as the aviation industry faces increasing pressure to reduce its environmental impact amidst growing concerns over climate change.

Infrastructure Expansion

Malaysia Airports Holdings Berhad (MAHB) is investing in infrastructure projects to support future passenger growth and improve operational capacity across its airport network.

• Expand Airport Facilities to Accommodate Increasing Passenger Traffic and Airline Operations
  • In 2023, MAHB recorded a revenue of RM4.91 billion, marking a 57.2% increase from RM3.13 billion in 2022. Passenger movements totaled 119.5 million, reaching 84.6% of 2019 levels. This significant growth underscores the necessity for expanding airport facilities to manage increasing passenger traffic and airline operations.

• Develop Strategic Aviation Hubs to Strengthen Malaysia’s Position in Global Air Travel
  • MAHB’s strategic initiatives aim to enhance Malaysia’s standing as a key aviation hub in the region. By developing strategic aviation hubs, MAHB seeks to improve global and regional connectivity, thereby bolstering Malaysia’s position in global air travel.

Initiatives Include:

• Airport Upgrades: Expansion plans for Kuala Lumpur International Airport (KLIA) include increasing Terminal 1 capacity from 30 million to 59 million passengers annually and Terminal 2 from 45 million to 67 million passengers. A fourth runway and a new Terminal 3 are under consideration, with preliminary studies assessing feasibility, expected passenger capacity, and economic impact. If implemented, these expansions could significantly enhance operational efficiency and accommodate projected growth in air traffic over the next decade.
• Subang Airport Regeneration: A major redevelopment of Sultan Abdul Aziz Shah Airport (Subang) is underway, with the goal of transforming it into a high-capacity city airport and aviation hub capable of handling 8 million passengers per year by 2030. This regeneration project aims to revitalise Subang Airport, enhancing its capacity and services to meet future aviation demands.

By focusing on these strategic infrastructure initiatives, MAHB aims to enhance passenger satisfaction, increase operational efficiency, and strengthen its position as a leading airport operator in the region.

Challenges and Opportunities

Challenges and Risks faced by MAHB

Malaysia Airports Holdings Berhad (MAHB) confronts several significant challenges that impact its operational efficiency and competitive standing:

• Aging Infrastructure and Maintenance Issues
  • MAHB has faced criticism for delays in infrastructure upgrades, notably the Kuala Lumpur International Airport (KLIA) Aerotrain system. The Aerotrain service has experienced multiple breakdowns, leading to passenger inconvenience and raising concerns about the reliability of airport facilities. These incidents highlight the challenges associated with maintaining aging infrastructure and the need for timely upgrades to ensure seamless airport operations.
• Intensifying Regional Competition
  • MAHB is experiencing a decline in market share within the ASEAN region, decreasing from 20% in 2013 to 16% in 2023. This downturn is attributed to substantial investments by competing airports, such as Singapore’s Changi and Bangkok’s Suvarnabhumi, which have enhanced their capacities and services. Without significant capital investment and strategic planning, MAHB risks further erosion of its competitive position in the region.
• Financial Constraints and Capital Investment Needs
  • The necessity for substantial capital investment to upgrade and expand airport infrastructure poses a financial challenge for MAHB. The company requires a long-term investment strategy to enhance its facilities and services to remain competitive. The lack of sufficient capital investment could impede MAHB’s ability to execute its strategic plans effectively.
• Operational Efficiency and Technological Advancements
  • Enhancing operational efficiency through technological advancements is crucial for MAHB to improve passenger experience and streamline airport operations. The integration of advanced technologies, such as artificial intelligence (AI) and Internet of Things (IoT) solutions is essential to modernise airport management and meet evolving passenger expectations. However, implementing these technologies requires significant investment and expertise.

Opportunities for CelcomDigi

As a leading telecommunications provider, CelcomDigi offers a range of solutions that can assist MAHB in overcoming its challenges:

• Infrastructure Modernisation through 5G-Powered IoT Solutions
  • CelcomDigi’s 5G-powered IoT solutions can facilitate the automation of airport operations, leading to improved efficiency and reduced operational costs. For instance, implementing smart surveillance systems can enhance security through real-time monitoring, while smart fleet management can optimise the logistics of ground services. These technologies can help MAHB address issues related to aging infrastructure by providing modern, efficient alternatives.
  • Digital Twin Technology: Implementing digital twins for critical infrastructure can help MAHB in planning maintenance and expansions more effectively, potentially reducing downtime and planning costs.
  • Smart Security Systems: Advanced security systems powered by AI can enhance security at airports, making them safer and more appealing to international travelers.
• Enhancing Competitive Edge with Advanced Connectivity
  • By leveraging CelcomDigi’s advanced connectivity solutions, including high-speed 5G networks, MAHB can offer superior digital services to passengers, such as seamless Wi-Fi connectivity, real-time flight updates, and enhanced mobile applications. These improvements can elevate the passenger experience, making MAHB-operated airports more attractive compared to regional competitors.
  • Advanced Connectivity Solutions: Deploying state-of-the-art connectivity solutions like high-speed 5G can improve the customer experience, making MAHB’s airports preferred hubs for digital-savvy travellers.
  • Innovative Passenger Services: Introducing services like mobile-based check-ins, augmented reality navigation, and personalised digital concierge services can differentiate MAHB from its competitors
• Financial Efficiency through Cloud and AI Integration
  • CelcomDigi’s collaboration with AWS to become an AI-driven tech company exemplifies its capability to integrate cloud services and AI into business operations. MAHB can benefit from these services by adopting AI-driven analytics to optimise resource allocation, predict maintenance needs, and enhance decision-making processes, thereby achieving cost savings and improved financial management.
  • Cloud Solutions and AI: By adopting cloud technology and AI, MAHB can optimise its operations and reduce costs, making more funds available for necessary capital investments.
  • Partnership Models: CelcomDigi can explore innovative financing and partnership models with MAHB to share the investment burden, especially in technology upgrades.
• Operational Efficiency via Private LTE Networks
  • CelcomDigi’s experience in deploying private LTE networks, as demonstrated in its collaboration with PETRONAS to equip offshore platforms with wireless connectivity, can be applied to MAHB’s airport operations. Establishing a dedicated, secure network can improve communication among airport staff, enable real-time data sharing, and support the deployment of IoT devices across airport facilities, leading to enhanced operational efficiency.
  • Private LTE Networks: Deploying private LTE networks can ensure secure and reliable communication across airport operations, enhancing overall efficiency.
  • M2M Communication: Machine-to-Machine (M2M) communication can automate various aspects of airport operations, from baggage handling to logistics, improving speed and reducing errors.

By partnering with CelcomDigi, MAHB can leverage advanced telecommunications and digital solutions to modernise its infrastructure, enhance competitiveness, manage financial constraints more effectively, and improve overall operational efficiency.

Key Stakeholders

Management Team

• Dato’ Mohd Izani Ghani – Managing Director
• Gordon Stewart – Chief Operating Officer, Airport Operations Malaysia
• Nadiah Tan Abdullah – Chief Human Capital Officer
• Vijaykumar Dayinde – Chief Information Officer
• Megat Ardian Wira Mohd Aminuddin – Senior General Manager, Strategy
• Hani Ezra Hussin – Senior General Manager, Commercial Services
• Kamaruzzaman Razali – Senior General Manager, Malaysia Airports Sdn. Bhd.
• Shukreen Ma – General Manager, Corporate Communications
• Zeid Abdul Razak – General Manager, Regulatory Economics & Investor Relations

Board of Directors

• Dr. Nungsari Ahmad Radhi – Chairman
• Dato’ Mohd Izani Ghani – Managing Director
• Dato’ Zamzuri Abdul Aziz – Non-Independent Non-Executive Director
• Dato’ Normah Osman – Non-Independent Non-Executive Director
• Tan Sri Datuk Zainun Ali – Non-Independent Non-Executive Director
• Datuk Amran Hafiz Affifudin – Non-Independent Non-Executive Director
• Rohaya Mohammad Yusof – Non-Independent Non-Executive Director
• Dato’ Ir. Haji Mohamad Husin – Senior Independent Non-Executive Director
• Ramanathan Sathiamutty – Independent Non-Executive Director
• Cheryl Khor Hui Peng – Independent Non-Executive Director
• Dato’ Seri Ir. Koe Peng Kang – Independent Non-Executive Director
• Chris Chia Woon Liat – Independent Non-Executive Director
• Mohd Nizam Mohd Khir – Alternate Director to Dato’ Zamzuri Abdul Aziz