Malaysia’s government to retain ‘influence’ at Malaysia Airlines

Government shortlists four undisclosed investors with decision expected by early 2020.

October 25th 2019

Print Friendly

Malaysia does not know who will own Malaysia Airlines (MAS) in the future, but the government plans to retain influence and equity in the airline. Read More » This strategy perpetuates concerns of political interference, a situation that plagues MAS.

Kuala Lumpur has not decided on its future shareholder composition of MAS, but it will have an “important stake” , Minister of Economic Affairs, Datuk Seri Mohamed Azmin Ali, told Malaysia’s lower house of parliament.

"The government will ensure that through [sovereign wealth fund] Khazanah, we will still have (an) important stake and influence in the new structure, although we have not finalised the new structure,” he said.

The government revealed 20 potential investors were invited to make submissions for an interest in MAS, a process that produced a shortlist of four. Mohamed Azmin said the government could not disclose any of the investors, or even respond to an MP who asked if Japan Airlines (JAL) was a candidate. Media reports have suggested the government favours JAL as a partner because of the Japanese airline’s experience with bankruptcy restructuring.

The government is looking for two priorities from potential investors, Mohamed Azmin said. “Our focus is on proposals with prudent financial management and operation synergy in Malaysia Airlines,” he said.

Mohamed Azmin said investor presentations to Khazanah's board of directors would be made in November and a decision would be announced either by the end of this year or in early 2020.