KUALA LUMPUR (Oct 7): Pasir Gudang member of parliament Hassan Abdul Karim urges the government to reject any bailout request from airlines as taxpayers should not bear the cost of rescuing a private company.
Speaking during the debate on the Auditor General’s Report in the Dewan Rakyat on Wednesday, Hassan did not name the airline but referred to the slogan “Everyone Can Fly”, which is associated with low-cost carrier AirAsia operated by AirAsia Group Bhd (KL:AAGB).
He said the airline is heavily indebted, with RM18.4 billion in short-term borrowings, and suffered a quarterly loss of RM830 million
“If this company knocks on the Finance Ministry’s door asking for government assistance, I hope the government rejects it because the government is already in debt,” Hassan said.
The outspoken PKR parliamentarian's remarks come as AirAsia is seeking to raise funds to shore up its liquidity as higher fuel costs amid the Middle East war and mounting losses strain its finances.
The Edge reported on Oct 1, citing sources, that global aviation advisory firm Alton Aviation Consultancy had launched a campaign to help the low-cost carrier raise as much as US$1 billion (RM4.1 billion), with the effort backed by the Finance Ministry (MOF). MOF has yet to respond to the report.
While acknowledging AirAsia’s contribution to Malaysia’s aviation and tourism sectors, Hassan said the airline’s owners and shareholders, who have billions in assets, should use their own wealth to rescue the company.
He said this was particularly concerning as Malaysia’s federal debt had risen 5.9% last year to RM1.321 trillion, while the government collected only 5% of the RM9.273 billion owed to it in 2025, according to the latest Auditor General’s Report.
LCS probe
Separately, Hassan joined other MPs in calling on the authorities to expedite investigations into the long-delayed littoral combat ship (LCS) project.
He said former defence ministers and senior ministry officials involved in the procurement should be investigated, he said.
“I know there have been calls for a Royal Commission of Inquiry (RCI) to look into the project, but this is slow and cumbersome. What is important is to take immediate action,” he said.
The LCS procurement has faced significant delays and cost increases since the government inked a RM9.128 billion contract in 2014 for the class of six vessels.
Not a single vessel has been delivered to the Royal Malaysian Navy despite the original contract stating that all six ships should have been delivered by 2020 or 2021.
In January 2023, the government restructured the project by reducing the number of vessels to five and pumping in an additional RM2 billion
The first vessel in slated for delivery in April 2027, according to the latest Auditor General’s Report.