Up to airlines to save themselves: Tengku Zafrul

KUALA LUMPUR – Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz says it is up to the Board of Directors and shareholders of the respective airlines, and not the government, to save their companies.
 
He said that while the government remains committed to assisting businesses affected by the Covid-19 pandemic, it will not get involved in any plans to “rescue” any individual companies, including commercial airlines. 
 
Primarily, Tengku Zafrul said the Government wants to avoid discriminating against other firms that have been similarly impacted by the global health crisis. 
 
“The government must ensure that any assistance, especially in terms of financials, has a clear framework and objective,” he said in a parliamentary reply dated November 25. 
 
“Apart from that, financial assistance to any companies will be regarded as a bail out and will indirectly affect the performance of their rivals that do not receive similar aid. 
 
“Additionally, the Government does not have any share in any of the airlines. As such, any financial recovery plans are subject to the consideration and approval from the respective company’s Board of Directors and shareholders.”
 
Tengku Zafrul was responding to a question from former Transport Minister Anthony Loke Siew Fook (PH-Seremban) on the types of assistance that would be channelled to airlines here facing challenges due to Covid-19. 
 
The Minister said as Malaysia practises an open economy system, the country was bound to be gravely affected as a result of the pandemic. 
 
He also claimed that the impact to the economy has been felt across every sector, and not exclusive to airlines. 
 
“Taking into account the economic impact of the crisis, the government believes aid roll-out should be done on broader terms and not limited to air carriers,” he said. 
 
Among other things, Tengku Zafrul pointed out that the government has announced a slew of incentives under the various stimulus packages since March, including a loan moratorium and the wage subsidy programme. 
 
Last month, he had said that the government would not bail Malaysia Airlines out, and that any support measures should come from its sole shareholder Khazanah Nasional Bhd. - The Vibes, November 27, 2020