KUALA LUMPUR: The restructuring of Malaysia Aviation Group (MAG) finances has resulted in a cost saving of RM10bil, said the Finance Ministry.
Meanwhile, the restructuring of the aviation group’s equities led to a saving of RM5bil.
The ministry said Covid-19 pandemic had given the parent company of Malaysia Airlines Bhd (MAB) a chance to restructure its financial position in March 2021.
This had put the MAG’s balance sheet in a better position with a healthier cost structure.
The ministry was responding to a question by Teresa Kok (PH-Seputeh) on the strategy used by Khazanah Nasional in making MAG’s recording an operating profit of RM889mil in 2023.
She also asked on the strategies to strengthen MAB in the upcoming years.
In a Parliamentary written reply dated July 16, the ministry said although the results were positive, it is important for the management to always be cognisant of the challenges related to the industry especially with crude oil prices and currency movements.
As for the group’s long-term plan, the Finance Ministry said the goal is to strengthen MAG’s position to make it among the Skytrax Top 10 aviation companies of by 2030.
The group posted a net profit of RM766mil for the financial year ended Dec 31, 2023 (FY23), a first since its inception in 2015.
The group registered a net loss of RM344mil in 2022.
