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.JPG "An AirAsia plane is displayed on the runway of the Kuala Lumpur International Airport in Sepang on August 20, 2019. Photo by Miera Zulyana")
KUALA LUMPUR, October 23 – AirAsia Group Bhd has confirmed that it has obtained a 300 million ringgit loan from Sabah Development Bank Bhd (SDB) and not from any government financing or guarantee.
In a presentation to Bursa Malaysia today, the budget airline said the loan had been obtained as part of the group’s fundraising exercise and to propel the airline into digital business.
He said the loan was primarily intended to improve AirAsia’s logistics presence in Sabah, creating more than 100,000 new jobs in the process.
The fund will be used for specific development projects, including the establishment of the digital food supply chain and cold chain facilities of OurFarm (its agricultural e-commerce platform) in Sabah (allocation of 170 million ringgit) and the Partial financing of a project to convert Kota Kinabalu International Airport into an international hub for AirAsia Bhd (RM110 million).
A sum of RM 10 million would be used to enhance Sabah’s e-commerce platforms and marketing of Sabah products, and another RM 10 million would be used to further promote Sabah’s tourist destinations on airasia.com, the super app AirAsia digital, he added. – Bernama
