KHAZANAH Nasional Berhad is still reviewing potential partners for ailing national carrier Malaysia Airlines Bhd, the sovereign wealth fund said in its 2019 report which was released yesterday.

“Khazanah evaluated options to resolve key issues facing MAB and launched a process to evaluate potential partners for the airline in 2019,” the report said.

“A total of nine proposals were received, of which four were shortlisted. For 2020, Khazanah will continue to work closely with the government and MAB to further review the proposals and finalise a decision on the appropriate strategic option moving forward.”

According to records filed with the Companies Commission of Malaysia (SSM) sighted by The Malaysian Insight, MAB reported a net loss of RM791.70 million for the financial year-ended December 31, 2018 against RM812.11 million in the previous year.

Revenue improved marginally by 0.8% to RM8.73 billion from RM8.67 billion.

Based on Khazanah’s 12-point turnaround plan, the airline was supposed to have returned to the black last year.

The fund previously committed to inject RM6 billion to save the airline.

MAB was one of two highlights the fund mentioned as part of investments in its “strategic fund”.

As part of Khazanah’s “refreshed mandate” under the former Pakatan Harapan government, it had restructured its investments under a “commercial” and “strategic fund”.

The other highlight of the report was that Khazanah saved about RM42 billion by restructuring toll rates for highways under PLUS in 2018.

This also gave consumers an 18% reduction of toll rates that started in February 2019 at highways, such as the North-South Expressway.

“In 2019, the SF achieved financial and strategic outcomes for specific assets, while generating an overall return of 2.9%.”

For its commercial fund, Khazanah said it aims to generate a rate of return equivalent to the Malaysian consumer price index + 3% on a five-year rolling basis.

For its strategic fund, Khazanah aims for a return of the equivalent of the yield from 10-year government securities on a five-year rolling basis and for an investment to achieve its strategic objectives. – July 8, 2020.