Transport minister Loke Siew Fook’s support for Khazanah Nasional Bhd’s decision to privatise Malaysia Airports Holdings Berhad (MAHB), has sparked significant interest and debate.
The minister said the decision did not entail selling the government’s stake in MAHB to external parties. However, a Bernama report claimed the privatisation will significantly ease pressure on the government’s coffers.
The proposal opens the door for a much-needed re-evaluation of how Malaysia’s airports are managed and operated.
One of the most compelling arguments against selling MAHB to foreign entities is the importance of retaining strategic assets under national control.
However, an equally important consideration is the potential for regional empowerment and economic development through the decentralisation of airport management.
On that score, the government should seriously consider granting Sabah and Sarawak the first option of owning and managing the airports located in their respective states.
Regional management: a path to growth
Sarawak is home to a very popular international airport, the Kuching International Airport (KIA).
The state’s vast land area houses three other airports, serving Sibu, Bintulu and Miri, and eleven Short Take-Off and Landing (STOL) airports in rural areas, for the subsidised rural air services (RAS).
By forming its own airport operating company, the state can manage and develop these airports, tailoring improvements and investments to cater for the specific needs of the region.
Similarly, Sabah would benefit from putting its airports under a state-owned body.
This localised control would allow for more responsive and region-specific management strategies, fostering better infrastructure and service improvements that align with Sarawak’s and Sabah’s individual aspirations, unique needs and growth potential.
Breaking MAHB into three units
To facilitate this regional management approach, MAHB should be broken up into three entities, with each assigned to manage the country’s three different geographical regions: Peninsular Malaysia, Sarawak and Sabah.
This division would allow each region to focus the development and management of its own airports, ensuring that local priorities and economic conditions are directly addressed.
The entity responsible for Peninsular Malaysia would oversee all airports within Peninsular Malaysia, enabling focused development and housing the busiest airports in the country, especially the Kuala Lumpur International Airport (KLIA) and Penang. This unit can be privatised, if necessary.
A separate unit for Sarawak will allow the state to own and manage all the airports in its territory.
The Sarawak entity can then prioritise investments and improvements tailored to its economic activities, including by expanding KIA to make it a gateway to Borneo, developing it into an international hub for the region, and enhancing eco-tourism and trade.
In the same way, a Sabah-based airport would own and manage all the state’s airports, drive the re-development of Kota Kinabalu International Airport, and align air connectivity with its tourism and state economic sectors.
Economic and social benefits
There are robust economic arguments for this decentralisation.
Allowing Sabah and Sarawak to manage their own airports can catalyse local job creation, particularly among graduates.
This approach can help both regions escape the middle-income trap by fostering a skilled workforce in airport and aviation management.
Increasing the number of technical staff, managers and other professionals within the aviation sector will also promote regional development.
This local empowerment can lead to more efficient airport operations, better customer service, and enhanced capabilities in handling cargo and passenger traffic, thereby boosting the overall local economy and increasing state revenue.
Local talent development
Decentralising airport management also provides an invaluable opportunity to develop local talent.
By training and developing a pool of local talents and experts in airport management and operations, Sabah and Sarawak can build a robust and self-sustaining aviation sector.
This local expertise will ensure that airports are managed by those who best understand the regional context and needs.
The proposal to split MAHB into three regional units offers a strategic pathway to enhance the management and development of Malaysia’s airports.
By empowering Sabah and Sarawak to take control of their airports, we can ensure that investments are more effectively aligned with regional needs and priorities.
This approach promises not only economic development and growth but is capable of increasing direct revenue to the state coffers, driving Sabah and Sarawak towards a more inclusive and prosperous future.
The time is right for the federal government to decentralise MAHB, and grant Sabah and Sarawak the autonomy to manage their airports.
This move will foster regional growth, create jobs, and develop local expertise, ultimately contributing to a more balanced development and add more value to the national aviation sector. - FMT
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
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