The move will heighten cargo handling rivalry between Malaysia and Singapore
Malaysian transport and power tycoon Syed Mokhtar Albukhary has acquired the Johor state's airport in a move destined to heighten competition with Singapore's hard-pressed cargo handlers.
The acquisitive Mr Mokhtar, majority owner of the booming nearby Port of Tanjung Pelepas (PTP), on Tuesday agreed to pay Malaysia Airport Holdings M$80 million (HK$163.04 million) for the airport at Senai, according to the holding company.
The deal, to be completed this month pending shareholder and licensing approval, is seen as the latest piece in the modern logistics hub Mr Mokhtar is building in and around Johor Bahru.
'It is pretty much a [Malaysian] government agenda for PTP to leverage Senai to take more cargo away from Singapore,' one transport analyst said. 'The infrastructure linking [PTP and Senai] may not be up to international standards. But you can guarantee it soon will be, because it has to be to compete with Singapore.'
Mr Mokhtar caught Singapore's attention two years ago when his fledgling PTP lured away the world's biggest shipping line, Maersk Sealand, from the port of Singapore.