SOCIAL Economic AND POLITICAL Development OF MALAYSIA

KHAZANAH Nasional Bhd, the linchpin of GLC change, has made huge increases on many fronts since 2004. Not, the least, which is the increase in its investment stock portfolio to RM150.2 billion in 2015 from RM50.9 billion. Tan Sri Azman Mokhtar, managing director of the tactical investment fund, however, is cognisant of the difficulties ahead – the revival of Malaysia Airlines, preparing for the execution of TPPA, satisfying the Bumiputera agenda and ‘preparing for succession as well’.

The nationwide carrier, which is targeted to return to profitability by 2019 under the five-year MAS Recovery Plan (MRP), reported its maiden regular monthly income in Febru­ary. He said when MRP was an­nounced in 2014, MAB’s cost base had increased by 45 percent from 2004, while the global average de­creased by 15 %. Average revenue was about six % below its full-service peers.

“If we regain that six % and bring costs closer to benchmark levels, we would more or less break and begin to be back in the black even. “So, can we re­cover? I really believe yes, Insyaallah, with a complete lot of effort and the commitment of most. Azman said another major aspect for the flag carrier’s turnaround was to regenerate its net­work. This involves redeploying capac­ity to a more local footprint and trimming loss-making routes. “At the same time, we’d to ensure that the one world alliance continued to be intact.

On the appoint­ment of Christoph Mueller as MAB leader of­ficer, Azman said your choice to truly have an international CEO was made out of the view that the na­tional carrier’s sit­uation was very critical. “In that situation, you basi­cally need the best person for the work. MALAYSIA stands to take advantage of the Trans-Pacific Partnership (TPP), provided government- linked companies (GLCs) prepare themselves for greater liberalisa­tion and the required legislation is in place.

“Being part of an open up and free global financial system is at the center of our DNA. “At the end of your day, we have a duty to ensure that it is not just free trade, but moreover, also fair,” said Khazanah Nasional Bhd handling director Tan Sri Azman Mokhtar.

He said the government’s strate­gic investment arm acquired actively added to and supported the successful negotiation and passing of no less than six free trade agree­ments (FTAs) through the Finance Ministry and International Trade and Industry Ministry. “Our research side has built cer­tain features to be able to anal­yse trade and agreements economics, which can be complex areas. “We have built these features precisely with the purpose of support­ing national plan formulation – trade plan, in this case,” said Az­man, who is also a trustee of the Asia Business Council.

He said Khazanah acquired initially indicated concern over some pro­visions that it felt were unduly lim­iting and constricting and centered on parentage (the so-called “state ownership”), than on proper behavior rather. “We’ve never asked for, want or expect any undue.Favors by virtue of our parentage. “We are very open to being judged and regulated properly based on our performance and be­haviour.

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