Airport city strategy drives privatisation of Kuala Lumpur airport

Premium Analysis

It is not unusual for the stock market-listed Malaysia Airports Berhad (MAHB) to be approached by the private sector to take one or more of its 39 Malaysian airports under some form of concession arrangement.

But a recent proposal from a Malaysian businessman with a background in real estate has a different spin on it, because the development of an airport city is at its heart. It helps that MAHB has already committed to invest there.

But that proposal faces the fact that Kuala Lumpur already has one, built around the airport, KLIA, which replaced the one that he wants to invest in.

That suggests the reality may amount to much less than the vision.

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