Former S'gor exco blames Khazanah for MAS' woes
Published: Sep 5, 2024 7:05 PM
As the finger-pointing over Malaysia Airlines (MAS) problems continues, a former Selangor state executive councillor said its parent company Khazanah Nasional Berhad should also take the blame.
“When I was in charge of aerospace industry development in Selangor during the relevant period, the state government did not agree to the lease proposal on two grounds,” Teng Chang Khim said on Facebook today.
Teng’s remark came after former minister Khairy Jamaluddin said that MAS fell victim to unintended consequences of Khazanah’s decision to sign a 15-year lease for two hangars at Subang Airport with a Singaporean company years back.
According to the New Straits Times yesterday, Khairy said the lease had enabled SIA Engineering Company (SIAEC), an aircraft maintenance firm owned by Singapore Airlines, to poach essential staff leading to a domino effect on the national carrier's operations.
"One such company we attracted was SIAEC, for which Khazanah granted a concession to operate from two hangars in Subang.
"When that happened, it wasn't just about that one decision, because MRO (maintenance, repair and overhaul) competition isn't limited to just one company.
"The unintended consequence was the loss of licensed aircraft engineers from MAS itself due to the competition. When SIAEC comes in, what do you think will happen? They will offer higher salaries because their income is in SGD (Singapore dollars)," Khairy said on his podcast Keluar Sekejap.
According to a statement issued by SIAEC on April 5, 2022, the company signed a non-binding memorandum of understanding with Impeccable Vintage Properties Sdn Bhd (IVP), a wholly-owned subsidiary of Khazanah to potentially lease two hangars located at Complex A, Sultan Abdul Aziz Shah Airport in Selangor.
“Through this MOU, the parties will now work on the next phase of hangar technical assessment to ensure that the refurbished hangars will be future-ready to support the maintenance, repair and overhaul of current and next-generation aircraft,” the statement read.
At the time, Ismail Sabri Yaakob was helming the nation, with Tengku Zafrul Abdul Aziz holding the finance portfolio.
On Dec 20, 2023, SIAEC issued another statement declaring it has entered into an agreement with IVP for the lease of the two hangars for 15 years, with an option to renew for a further term of 15 years.
Spurned by Khazanah
Elaborating on the points of objection, Teng said there was a strategic proposal involving the expansion of the National Aerospace and Defence Industries Sdn Bhd’s (Nadi) MRO business back then.
It involves the rejuvenation of the Subang aerospace zone and the development of an Asia Pacific private jet hub - which needed corroboration of Khazanah, Nadi, Malaysia Airports Holdings Berhad and the Selangor government.
“Secondly, the state was of the view that SIAEC should go to the proposed Selangor Aeropark in Sepang which would take a few more years to develop during which, a concerted effort by all parties would produce more engineers and technicians to meet the demand of the aerospace industry in anticipation of a rapid growth of the industry,” he said.
Teng Chang Khim
However, Teng alleged that Khazanah had brushed off the proposal by declining to attend meetings called and ignored a letter from the MB (Amirudin Shari).
“The matter had also been brought to the attention of ministers but to no avail.
“The ‘unintended’ consequence has, unfortunately, vindicated the foresight of the Selangor government but to the great loss of national interest,” he added.
On Aug 24, the Malaysia Aviation Group (MAG) announced plans to scale back its network from now until the end of the year following several flight disruptions this month.
In a statement, MAG group managing director Izham Ismail explained this decision would allow the company to implement necessary measures to stabilise operations.
“This is to ensure the long-term reliability of our fleet and robustness of our operations and enhance our ability to ensure our customers on MAS, Firefly and Amal services face minimal disruptions and have the best experience possible flying with us,” he said.
Two days ago, Prime Minister Anwar Ibrahim assured the public that the government would work towards resolving issues plaguing MAS.
However, Teng alleged that Khazanah had brushed off the proposal by declining to attend meetings called and ignored a letter from the MB (Amirudin Shari).
“The matter had also been brought to the attention of ministers but to no avail.
“The ‘unintended’ consequence has, unfortunately, vindicated the foresight of the Selangor government but to the great loss of national interest,” he added.
On Aug 24, the Malaysia Aviation Group (MAG) announced plans to scale back its network from now until the end of the year following several flight disruptions this month.
In a statement, MAG group managing director Izham Ismail explained this decision would allow the company to implement necessary measures to stabilise operations.
“This is to ensure the long-term reliability of our fleet and robustness of our operations and enhance our ability to ensure our customers on MAS, Firefly and Amal services face minimal disruptions and have the best experience possible flying with us,” he said.
Two days ago, Prime Minister Anwar Ibrahim assured the public that the government would work towards resolving issues plaguing MAS.
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