Be frugal and trustworthy: PM urges Malaysia Airlines
KUALA LUMPUR – Malaysian Prime Minister Anwar Ibrahim urged Malaysia Airlines to look at its past mistakes and learn from them, stressing that good governance and integrity are key to the company’s success.
In a speech during the inauguration of the Malaysia Airlines Berhad (MAB) Academy, the Prime Minister recalled his time as the country’s finance minister in the 1990s. He said he was concerned about the lack of transparency surrounding the airline’s privatisation.
“Under the Madani administration, I have repeatedly stressed the need for good governance and a clear vision,” he said. “Management must be diligent, frugal and trustworthy. Focus on this, learn from past experiences, and avoid leakages.”
The Prime Minister called on the airlines’ leadership to prove to the nation and the international community that the company can raise its dignity through proper management.
The MAB inauguration coincided with the ground-breaking for the Malaysia Airlines flight simulator centre. Other high-ranking officials present at the event include Transport Minister Anthony Loke and Tan Sri Wan Zulkiflee Wan Ariffin, chairman of the Malaysia Aviation Group (MAG).
Turning its fortunes around
Speaking on the Malaysia Airlines’ turnaround, Prime Minister Ibrahim praised the work of the Khazanah Nasional and MAG for making the company profitable. The sovereign wealth fund Khazanah Nasional is the only shareholder in the airlines through its MAG subsidiary.
In March, MAG achieved positive operating profit for the second consecutive year at MYR 889 million (approx. US$187 million), which is a 64% improvement from the MYR 540 million (US$114 million) in 2022.
The group also posted MYR 766 million (US$162 million) in net profit for the financial year that ended 31 December 2023. It marked the first time that the company recorded a profit since it was founded in 2015.
MAG saw a 31% increase in its revenue as well, jumping from MYR 10.61 billion (USD 2.2 billion) to MYR 13.85 billion (USD 2.9 billion). This was a large improvement from its fortunes in FY 2022, when the group posted a net loss of MYR 344 million (US$72.5 million).
Caring for Malaysia Airlines employees
Recognising the contributions of Malaysia Airlines employees In his address, the Prime Minister reminded Malaysia Airlines about the importance of proper management and transparency for the benefit of the company’s employees. He told the airlines that it should properly compensate its workers for their service.
“Let’s not underestimate this issue because the airline’s employees have families and deserve our attention and consideration,” the Prime Minister said.
“A company that is well managed, with decisions made carefully, prudently and transparently, will result in a better future for the employees.”