Dr M: Privatisation can make MAS profitable

KUALA LUMPUR: Privatisation could be the answer to Malaysia Airlines' profitability after efforts to turn it around had been unsuccessful, said Tun Dr Mahathir Mohamad.

He said through privatisation, MAS' management would have to be serious in finding ways to make profits, whereas, as a government-linked company, the perception was that it was alright for MAS to even record losses.

“There are people who think that GLCs are meant to provide employment opportunities and not to make money for the company or the government. 

"Privatising MAS may change this and the airline can probably make money instead of losses,” he said, adding that his experience with Proton was a good example where after the national car manufacturer was privatised, the management was more conscious about the company’s profit and loss.

The former prime minister said there were sufficient local talent to manage the airline should it be privatised, instead of selling it to foreigners.

Talk of the sale of MAS resurfaced recently, with several parties believed to have sent in proposals to the Government to buy over the loss-making airline.

Minister in the Prime Minister’s Department Datuk Seri Idris Jala had said that the government did not have any plans to sell MAS and was implementing the recommendation to rationalise its role in business under the new economic model.