AirAsia Group's RM300m loan for Sabah operations

AirAsia aircraft parked during the Movement Control Order. The low-cost carrier said the RM300mil loan from Sabah Development Bank Bhd was in line with AirAsia’s pivot into the digital business.

KUALA LUMPUR: AirAsia Group Bhd plans to use the RM300mil loan from Sabah Development Bank Bhd for its digital food supply chain in Sabah and also the Kota Kinabalu International Airport project.

The low-cost carrier said on Friday the loan was part of the fund raising exercise undertaken by the company.

Of the RM300mil, it said RM170mil would be used to set up operate “OURFARM” digital food supply chain and cold chain facilities in Sabah.

Another RM110mil would be used to part-finance the project to turn Kota Kinabalu International Airport into an international hub for AirAsia's operations;

It added that RM10mil would be used to enhance e-commerce platforms and marketability of Sabah products; and RM10 mil to further promote Sabah tourism destinations on, the digital super app of AirAsia.

“This loan is in line with AirAsia’s pivot into the digital business. The main purpose of the loan is to enhance logistics in Sabah by increasing its supply chain and connectivity, creating over 100,000 new jobs in the process.

“The company wishes to clarify that this loan is not backed by a government guarantee, ” it said.

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