Extra funding for Malaysia Airlines depends on its proposal, says Khazanah

Malaysia Airlines has received RM6 billion from Khazanah Nasional in efforts to turn the business around. (AFP Pic)

KUALA LUMPUR: Any additional funding for Malaysia Airlines Bhd from Khazanah Nasional Bhd will be based on its proposal, says Khazanah CEO Shahril Ridza Ridzuan.

“But they must first come up with their own strategy,” he told reporters on the sidelines of the Nomura Islamic Asset Management 10th Anniversary Investment Forum today.

Yesterday, Shahril reportedly said the national airline should produce its own strategic plan to compete in the aviation industry and deliver better profits.

The airline is in the midst of strengthening its existing business strategy and will come up with new proposals.

The national sovereign fund, which took Malaysia Airlines private in 2014, injected RM6 billion into the business in an effort to help the airline return to the black after the toll from the weakening ringgit and higher jet fuel prices.

“We are still waiting for them to come back to us with their strategy,” he said.

Meanwhile, Shahril said Khazanah’s commitment to deliver RM1 billion in dividends to the government’s coffer this year remained intact despite the challenging macroeconomic environment.

However, he declined to comment on the additional funds that Khazanah could raise via its planned reduction in its global presence and the trimming of stakes in non-strategic areas.