Tengku Zafrul sends 'strong signal' Malaysia Airlines will receive financial aid

KUALA LUMPUR: Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz hinted that the national carrier, Malaysia Airlines Bhd (MAB) would receive financial support in ensuring the company's survival.

Citing a Nikkei Asia report, Tengku Zafrul, among others, informed that Malaysia Airlines' sole shareholder, Khazanah Nasional, was told to place the national airline in a strong position to support the domestic economy after the COVID-19 pandemic.

"The Ministry of Finance has discussed with Khazanah Nasional and asked them to ensure that Malaysia Airlines remains in a strong position to support the economic recovery," he was quoted as saying in the report.

According to Tengku Zafrul, Khazanah Nasional as a government-linked investment company has the financial resources to ensure that the company survives.

"Khazanah is doing what they have to do as shareholders to ensure that Malaysia Airlines survives the crisis," he added.

Tengku Zafrul added, Malaysia Airlines is a symbol of national identity that Malaysians can be proud of.

At the same time, Tengku Zafrul also urged critics to remain positive towards the airline.

"We have to look at it positively and objectively. For me, I am confident they (Malaysia Airlines) have learned from the past," he said, reiterating that the brand and the aviation industry are key components of the economy especially for the tourism sector.

"We have to make sure it works. Malaysia Airlines is a national brand ... but the important thing is to make sure it plays a role as a national airline.

"Hopefully, this crisis will be used as an opportunity for the aviation industry to redevelop, especially Malaysia Airlines," added Tengku Zafrul.

Malaysia Airlines' financial performance had previously declined by almost 100 percent in the first six months of this year following the COVID-19 pandemic.

Last October, the national airline announced RM16 billion in debt restructuring negotiations.

Reuters reported that Malaysia Airlines' parent company, Malaysia Aviation Group, has requested financial assistance from Khazanah Nasional worth USD500 million for debt restructuring negotiations, which are expected to be completed next December.