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KUALA LUMPUR: The decision to close or terminate the operations of Malaysia Aviation Group Bhd (MAGB) has not yet been finalized, Dewan Rakyat was informed today.
Any decision, said Finance Minister Tengku Zafrul Aziz, will depend on the outcome of MAGB’s negotiations with creditors and lessors to restructure the company.
At the same time, Tengku Zafrul said that the management of Khazanah Nasional Bhd, which fully owns MAGB, would also endeavor to ensure that the well-being of MAGB staff is protected, including, if necessary, adequate compensation in accordance with the regulations. Labor laws.
“As of August 31, 2020, the total liquidity of the MAGB group is approximately RM366 million, in addition to approximately RM578 million available for use with the funds allocated by Khazanah.
“To date, Khazanah has injected around 28 billion ringgit into the airline. MAGB’s current total liabilities to be restructured are estimated at RM 16 billion, ”he said today in a written response in the Dewan Rakyat.
He was responding to a question from Chan Foong Hin (PH-Kota Kinabalu), who requested to indicate whether the management of Malaysia Airlines Bhd (MAB) had obtained government approval to announce its closure in the event of negotiations with an aircraft leasing company. on the restructuring plan. it failed, and if the government would “rescue” the national airline.
Although he will not participate in any plans to save MAB, Tengku Zafrul said the government will hold further negotiations with Khazanah to identify the direction of the company, especially to strengthen its financial position and identify the best strategic solution for the aviation group.
MAB was established on November 7, 2014 to take over the operations, assets and liabilities of Malaysia Airline System Bhd (MAS).
MAB has been placed under MAGB, which is wholly owned by Khazanah.
Meanwhile, in a separate response, Tengku Zafrul said that as the government did not have any stake in MAGB and MAB, any proposed takeover and restructuring of the company was subject to the consideration and approval of the board of Khazanah, as the sole shareholder of the company. .
“The government, through Skim Jaminan Prihatin Danajamin (SJPD), offers a financing program worth RM 50 billion with a guarantee of 80% financing for the working capital of the companies.
“However, this assurance facility is provided for the benefit of all companies operating in Malaysia in all sectors, including the aviation sector, subject to the eligibility requirements that have been established,” he said.
I was responding to a question from Muhkriz Mahathir (Ind-Jerlun), who wanted to know if the government thought that the country no longer needed a national airline, as the MAB had critical financial problems.
