GIP fits the bill and, like most private capital funds, they will ultimately leave after creating price, only as they have been doing with their other airports, according to a spokeswoman from Khazanah.” We were looking for a spouse that has a strong track record of value creation and one that goes beyond what current airport managers are doing and can achieve,” said the spokesperson from Khazanah.
GIP does come with serious credentials.
GIP, one of the top infrastructure managers in the world, has a 17-year history and currently manages assets worth US$ 112 billion. GIP makes significant investments in renewable energy and oil and gas projects across the globe in addition to managing ports and airports.
However, opponents of the privatization plan pointed out that the airports run by GIP’s management do not consistently place high in international rankings like Skytrax.  ,
The London Gatwick Airport, in which the fund has a 49.99 per cent interest, is ranked 48th in Skytrax’s 2024 ranking, while the Sydney Airport, of which GIP owns 37 per cent, was in 55th , place. By contrast, Singapore’s Changi was ranked second, after the Doha Airport, and South Korea’s Incheon was ranked third.
With the exception of the Sabiha Gokcen Airport in Istanbul, MAHB currently manages 39 airports, all of which are located in Malaysia.
FINANCIAL MUSCLE NEEDED FOR UPGRADES
Malaysia’s airports need renovations.  ,
The Kuala Lumpur International Airport (KLIA ), widely seen MAHB’s prized asset, was 71st in the Skytrax 2024 airport rankings. In 2019 after experiencing an embarrassing technical issue that caused travelers to be stranded, the airport management was forced to suspend its aging aerotrain network, which is currently being replaced.
The privatization plan’s backers argued that GIP would provide much-needed financial support and technical expertise to put MAHB back on course to face off against other international rivals.  ,
According to government officials, the Anwar administration’s decision to replace the 25-year concession’s operating and land lease agreement with a new 45-year term that will only expire in 2069 will also help with better financial planning and airport expansion programs.
But there is concern that BlackRock’s participation could create other complications, particularly over the future prospects of the Sabiha Gokcen Airport in Istanbul.  ,
Turkey canceled all bilateral relations with Israel last month over what President Recep Tayyip Erdogan described as a “worsening humanitarian tragedy” caused by the Israeli offensive in Gaza.  ,
Some businesspeople believe that unless ties between the two nations resume, MAHB could find itself in a difficult position if the Sabiha Gokcen Airport concession expires in 2023.
In a client report from CGS International in late February, MAHB could choose to partner with Sabiha Gokcen, where it currently holds a 100 % interest, to increase its chances of receiving an extension.  ,
Khazanah declined to comment on the Istanbul airport’s prospects.