KUALA LUMPUR: The intensifying airport tax dispute between AirAsia Group Bhd and Malaysia Airports Holdings Bhd (MAHB) could affect the Employees Provident Fund’s (EPF) investment income if it causes a negative reaction in the stock market, EPF CEO Tunku Alizakri Alias (pix) warned.
EPF, a substantial shareholder of both AirAsia and MAHB, owns about 10% and 5% shareholdings in the two groups, respectively.
“Our dividend payments are always derived from our investment income, (which is) driven from the market performance. So if the spat has impacted the market, then of course it will have an impact (on us) in terms of income,” Alizakri said at a media briefing on the EPF’s 2018 financial performance today.
“We are not directly impacted (from the spat) but we are impacted by the market performance of the stock counters,” he said.
Meanwhile, Alizakri confirmed that EPF has written to both parties expressing its concern over the dispute, saying that it is acting “just like a typical concerned investor”.
He disclosed that AirAsia has responded to EPF’s letter, without ela-borating on the details of the airline’s reply. However, EPF has yet to receive a response from MAHB.
“One of the parties will be meeting with us very soon. We are very happy with that ... to explain the situation. We are looking forward to meeting with them,” he added.
Alizakri stressed that the retirement savings fund is concerned about the spat being brought up to the public, saying that it is not only bad for the two organisations but also bad for Malaysia as a whole.
“Because when you think about it, these are (two of) the biggest counters (in the local stock market), and also the face of Malaysia. AirAsia is an airline, the company that brings in tourists and business people. And MAHB, which is KLIA (operator), the first point of contact for foreigners that come into Malaysia.
“So we are naturally concerned that this disagreement has been brought into the public,” he said, adding that the letters were just to voice EPF’s concern.
“We are not in the position to go and arbitrate between these two. We are acting just like a typical concerned investor and we are hoping that they will be able to resolve this soon,” Alizakri said.
Last December, MAHB sued both AirAsia and AirAsia X for a total of RM36.1 million for refusing to collect the additional RM23 passenger service charges per passenger at klia2.
While MAHB stayed firm on its stance that the same rates should apply to both klia2 and Kuala Lumpur International Airport (KLIA), AirAsia argued that klia2 is a low-cost terminal and the charges levied should commensurate with the level of services provided.
The spat between the two seems to be far from over after MAHB turned down AirAsia’s offer of mediation, an attempt to resolve the airport tax dispute.
