This morning, the Ministry of Transport announced that the Cabinet had approved the extension of the OA and replaced the two previous AOs signed on 12 February 2009 with four new AOs, i.e. OA for KLIA, OA for the designated airports of the Malaysian Peninsula, OA for sarawak airports and OA for Sabah airports. Malaysia Airports Holdings Bhd`s (MAHB) corporate agreements (AOs) for the operation of its airports have been extended for a further period of 35 years, until 11 February 2069. This morning, Transport Minister Anthony Loke had the extension of MAHB`s mandate for the operation of KLIA and klia2 as well as its 38 airports. Overall, the extension is positive, as it consolidates MAHB`s position as Malaysia`s leading airport operator in the coming years. However, no significant details have been disclosed, including the timing of the escalation of PSC tariffs and user charges, which will affect the longer-term assessment of Malaysia`s operations. We maintain our forecast, hold rating and RM6.80 TP at this point, until further announcements and details are available. “The new open access framework is expected to enable the private sector to invest more in the country`s airport development activities and then contribute to Malaysia`s economic growth through the tourism industry and foreign investment. In accordance with this cabinet decision, the ministry is in the process of concluding all new agreements with MAHB and other government agencies,” MoT added. SEPANG – Malaysia Airports is encouraged by the confidence of the Malaysian government to extend until 11 February 2069 the duration of the operating agreements (AOs) for the airport operator for the operation, management and maintenance of airports in Malaysia. “This will increase funding for the development of the airport by using different financing methods to attract money market investors, subject to government approval whenever an investment expenditure is financed by the private sector,” he said.
The government has also concluded four new operating agreements (AEOs) with the airport operator, which provide for conditions that open up the participation of the private sector in the country`s airport development activities. KUALA LUMPUR, November 4 – The extension of Malaysia Airports Holdings Bhd`s (MAHB) corporate agreements (OEa) until February 11, 2069 is expected to improve the operational efficiency of airports and contribute to the country`s economy. . . .