Mahathir to Khazanah – “Drop underperformers.”

Prime Minister Tun Dr Mahathir Mohamad told KHAZANAH National Bhd that they may have to drop some under performing companies to save the sovereign wealth fund from incurring more losses,

He said such business decision was necessary to save Khazanah, adding that the sovereign wealth fund should have a comprehensive action plan to revive its position so as not to continue to suffer losses.

When asked if the poor-performing companies had been identified, Dr Mahathir said discussions on the matter had not taken place.

Khazanah had announced last Tuesday that half of its total impairment costs of RM7.3 billion in 2018 was contributed by the RM6 billion fund injected into MAS (Malaysian Airlines), which it took over in 2014.

It was recently reported by New Strait Times that MAS’ days as a national carrier may be numbered as it has failed to meet its three-year target to be profitable.

Instead, it had been bleeding since it was taken private in 2014. The NST, quoting aviation analysts, reported that the best deal for the airline was to completely shut down its operations or sell it to interested parties or spin off its business divisions.

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