MAB restructuring expected to complete by Dec 31


Reports by MARTIN CARVALHO, HEMANANTHANI SIVANANDAM, RAHIMY RAHIM and TARRENCE TAN

THE restructuring exercise involving Malaysia Airlines Berhad (MAB) is expected to be finalised by Dec 31, says Datuk Abd Rahim Bakri.

The Deputy Finance Minister said the government has taken measures to hold discussions on the debts and leasing made by the national carrier under the exercise.

“I can see some progress and the discussion is expected to be finalised by the end of the month, ” he said in his reply to a supplementary question by Datuk Jalaluddin Alias (BN-Jelebu) during Question Time.

Abd Rahim said MAB, along with other carriers around the world, was also badly hit by the impact of the Covid-19 pandemic.

Currently, the airline is operating with 75% of its aircraft grounded due to travel restrictions, and this has impacted its capacity and income.

He said prior to the pandemic, the financial position of the Malaysia Aviation Group Berhad (MAGB) had already dropped between 2015 and 2018.

“In 2015, the group recorded a loss of RM1.15bil, RM0.7bil in 2016, RM1.2bil in 2017 and RM1.3bil in 2018, ” he said.

As of Aug 31, the liquidity position of the MAGB group of companies stood at RM366mil apart from the RM578mil available from funds allocated by Khazanah Nasional.

“In order to overcome the financial problems of the MAGB and MAB, the government will hold further talks with Khazanah to find out the direction of the company, especially in strengthening the position of its finances and identify the best strategic solutions, ” he said.

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