MOHD Shafie Apdal today defended a RM300 million loan given to troubled budget carrier AirAsia during his tenure as Sabah chief minister.

Shafie was said the loan was only approved after much thought and consideration for the state’s benefit.

“AirAsia Berhad is a Bursa Malaysia listed company, so any transaction of RM300 million will definitely only be approved after all conditions have been met.

“As an airline favoured by Malaysians, AirAsia had development plans that would be beneficial to Sabah,” he said in a statement, adding that they had plans to create  100,000 jobs for the state.

His statement follows investigations being opened by the Malaysian Anti-Corruption Commission (MACC) on the Sabah Development Bank Sdn Bhd loan.

Sabah MACC director S. Karunanithy, however, declined to elaborate further on the investigation.

To this, the Parti Warisan Sabah president said he welcomed the probe, and maintained there was no foul play or hidden elements in the loan.

Sabah paper the Daily Express reported that Chief Minister Hajiji Noor had ordered a state investigation into how the loan was “disbursed in a hurry” by the previous Warisan Plus government led by Shafie.

Shafie said the cash-strapped AirAsia had plans to create a storage facility for its e-commerce platform called Ourfarm, as part of its expansion into agriculture and fisheries distribution. 

The Semporna MP said this was in line with his plans then to turn the state into a top food producing state, and ensuring food security for the nation.

“All of AirAsia’s planning would surely benefit Sabah as a state rich in agricultures and fisheries,” he said.

Shafie said AirAsia had also planned to spend RM110 million to develop the Kota Kinabalu International Airport into its own international hub.

“Through this, Sabah would return to its glory days as a top tourist attraction.

“As a state administrator, we could not just rely on one carrier, such as Malaysia Airlines. We cannot downplay the role played by other companies like AirAsia.

“As such, as a government responsible to develop the state’s economy, we needed to forge close ties with AirAsia, because if their plans succeed, Sabahans themselves will reap the benefits,” he added. – October 28, 2020.