Dewan Rakyat passes MAS bill

The Dewan Rakyat today passed the Malaysian Airline System Bhd (Administration) Bill 2014 to ensure continuity in services of the national airline.

The bill, among others, is aimed at providing allocations for the administration of the company (MAS), its wholly and partly-owned subsidiaries.

It also provides an allocation for the creation of a new entity, Malaysia Airlines Bhd (MAB), to replace MAS as the national carrier.

Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar tabled the bill for its third reading before being passed by a majority vote in the house.

The bill has 37 clauses and six sections which were debated by five Parliamentarians each from the Barisan Nasional and the opposition from 11.30am, before being passed at 4.45 pm.

Among the key features of the bill is that it enables MAS to operate at a reasonable cost in respect of supplies, services and staff, including work procedures and terms for new recruitment.

"This (bill) enables the new company to operate at a high standard," said Abdul Wahid, adding, Khazanah Nasional Bhd (Khazanah), the government investment arm, is committed to assisting MAS staff who did not want to relocate to the new management.

He also highlighted that Khazanah would create a reskilling centre for all MAS staff who decline to relocate, for the purpose of career guidance, counselling and entrepreneurship.

According to Abdul Wahid, a staff relocation centre, would be established for those wanting to move within the Khazanah group and other government-linked companies.

"The staff to join MAB to run MAS will undergo a selection process based on the aspects of skills and work culture," he said.

He said that about 14,000 workers will come under the new company, compared to the previous staff strength of 20,000.

Abdul Wahid also drew attention to the fact that efforts to streamline staff and suppliers, will be based on the principles of fairplay and justice.

He said, the new MAS leadership which is expected to start operations in July 2015 will be strengthened, and it involves the Board of Directors, middle and top management, to ensure profitability for the airline.

He said the new administration is also allowed to renegotiate with existing suppliers, their new prices to be offered.

"If the companies concerned disagree, then other suppliers can be sought. Khazanah will look at the relevant contracts, and not all will be protected, particularly that for catering," he added.

Meanwhile, Wahid said MAS at present was losing RM5 million daily, while the loss for the first six months of the year, was at RM748 million.

"This is due to the operating structure and large staff numbers. To enable the new company to be more viable, it is important to give it an opportunity to select staff based on terms that can increase productivity," he added.