In today’s edition of Evening 5 — MYAirline announced today that it is suspending its flight operations effective immediately until further notice, just ten months after it commenced operations. Meanwhile, Putrajaya is denying Goldman Sachs’ claims that it breached the settlement agreement.
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00:00 [Music]
00:04 Low-cost carrier MyAirline announced in the early hours that it is suspending its flight operations
00:10 effective immediately just 10 months after it commenced operations in December 2022.
00:16 This makes it the first Malaysia-based airline to collapse post-pandemic
00:20 even as the industry recovers after COVID-19.
00:23 In a statement, the airline said that it had come to this extremely painful decision
00:28 as a result of significant financial pressures that made it necessary to suspend operations
00:34 pending shareholder restructuring and recapitalization of the airline.
00:38 The board of directors said they deeply regret and apologize for having to make this decision
00:44 understanding the impact it will have on its loyal passengers, dedicated employees and partners.
00:49 They added that they had worked tirelessly to explore various partnership
00:53 and capital raising options only to eventually run out of time.
00:57 The board comprises MyAirline co-founder and major shareholder Datuk Alan Goh Wan Hua,
01:03 his son Sean Goh Zee Han, co-founder and ex-CEO Rainer Teo Keng Hok,
01:08 former Civil Aviation Department of Malaysia DG Datuk Sri Azharuddin Abdul Rahman,
01:13 former Malaysia Airports Holdings COO Datuk Abdul Hamid Muhammad Ali
01:18 and Trillium Cove Holdings Director Jothi Prakash Murugan.
01:21 Teo, who had helmed the airline since its inception,
01:24 stepped down on Sunday, citing health considerations.
01:28 In recent weeks, the rumor mill had gone into overdrive that MyAirline was hitting
01:32 serious turbulence following allegations of unpaid staff wages, late payment of services
01:37 providers' dues and difficulty in raising funds for new aircraft leases.
01:42 Once the news broke, MAHB said that it has deployed its resources at relevant airports
01:46 within its network to extend all possible assistance to stranded MyAirline passengers.
01:52 It said that currently, the situation at the affected airports is under control.
01:57 According to MAHB, operational data shows that up till October 12,
02:01 a total of 39 flights servicing local destinations and one international route
02:06 to the Don Mueang International Airport in Bangkok, as well as about 5,000 passengers, are affected.
02:13 Regulator, the Malaysian Aviation Commission, said it has put in place dedicated hotlines
02:18 and channels to assist consumers affected by the abrupt suspension of MyAirline's flights.
02:24 MAVCOM says it is also currently investigating the airline,
02:27 adding that it stands firm that MyAirline is still liable to refund consumers
02:31 who have purchased tickets but are unable to travel.
02:34 All quarters are advising passengers with tickets on MyAirline who are not yet at the airport to
02:40 not go to the airport, and instead explore flight alternatives from other carriers.
02:45 Batai Air, AirAsia and Malaysia Airlines have all stepped in to offer special assistance
02:50 to any affected passengers through a mixture of various fare options and discounts,
02:55 with the national carrier inviting the management of MyAirline to work together
02:59 in reallocating their passengers on Malaysia Airlines flights.
03:02 The Attorney General's Chambers has rejected Goldman Sachs Group's claim that Putrajaya
03:12 has breached the US$3.9 billion settlement agreement in relation to the Wall Street
03:17 Bank's role in the 1MDB scandal. In a statement, the AGC said Goldman Sachs' claims
03:23 "mischaracterizes the conduct of the government". The AGC, on behalf of the Government of Malaysia,
03:29 said it will prepare its response within the confines of the law and reiterates that the
03:33 interests of the Malaysian people is paramount. Goldman Sachs sued the Malaysian government in
03:38 the London Court of International Arbitration for violating its obligation to appropriately
03:44 credit assets against the guarantee provided by the bank in its settlement agreement and
03:49 to recover other assets, a spokesperson told Reuters. Meanwhile, 1MDB Task Force Asset Recovery
03:55 Chairman Datuk Sui Johari Abdul Ghani called the suit "premature" and without due consideration
04:00 of necessary prerequisites. He said the parties are still in the middle of amicable good faith
04:06 discussions following four extensions granted by the government to Goldman Sachs to settle
04:11 the dispute. The interim payment is part of a US$1.4 billion asset recovery guarantee by Goldman
04:18 Sachs, which together with a US$2.5 billion cash payment forms the settlement agreement signed on
04:24 August 18, 2020. Under the agreement, if the Government of Malaysia did not recover the sum
04:29 of US$500 million by August 18, 2022, Goldman Sachs would be required to pay US$250 million
04:37 as interim payment to the Government of Malaysia. Johari said Goldman Sachs' action of initiating
04:43 arbitration proceedings also appears to be an attempt to detract and divert attention away
04:49 from the bank's obligation to adhere to the interim payment under the settlement agreement.
04:55 IJM Corp. Announced that its wholly owned subsidiary, IJM Construction, has accepted a
05:04 SGD1.1 billion contract from Malaysia Rapid Transit System for the construction of an immigration,
05:10 customs and quarantine complex for the Johor Bahru-Singapore Rapid Transit System Link in
05:15 Bukit Cagar, Johor. IJM Construction had signed a letter of acceptance in respect of the proposed
05:21 design, construction and completion of Packages 2A and 2B of the ICQC project, which is part of
05:28 the JB Singapore RTS Link project. The award also includes a SGD155 million provisional sum.
05:35 IJM says that the RTS Link project is expected to contribute to its future earnings barring any
05:40 unforeseen circumstances. The RTS Link is expected to pull in 35% of the 350,000 people who travel
05:47 across the Johor Causeway daily. The 4km RTS Link will cross the Straits of Johor,
05:53 linking the Bukit Cagar station in JB to the RTS Link Woodlands North station in Singapore.
05:59 The RTS Link is expected to be completed by December 2026.
06:03 K&M Group and its indirect wholly owned subsidiaries, Deutsche K&M and Boschig,
06:13 have sued Flavio Porro and Terence Tan Koon Ping after K&M called off the disposal of Boschig to
06:19 Vorsprung Industries for EUR 220.8 million in December 2022. In a boss filing, K&M said the
06:27 plaintiffs filed the writ action against the duo, who were former executive directors of the group,
06:32 at the Kuala Lumpur High Court on Wednesday. The plaintiffs are seeking for the defendants to pay
06:37 EUR 3.44 million or any other sum determined by the court within 14 days of the date of the order.
06:44 In the event that the defendants fail to pay up, the plaintiffs are seeking for their assets and
06:49 properties to be traced and paid to them in lieu of the amount initially sought. Porro is also part
06:54 of a group of individuals who have been proposed to replace the current board of directors,
06:59 which include K&M's chairman and largest shareholder, Tunku Dato' Yaakob Kaira. An EGM to
07:05 replace the directors was applied for by German billionaire Andreas Heyschen, who had recently
07:10 upped his stake in the company to 8.249% after acquiring another 0.336% on the open market.
07:17 The matter is now fixed for case management on October 25, 2023.
07:22 New Ace Market entrant SSF Home Group ended its maiden trading day at $0.265,
07:32 which is 1.5 cent or 6% higher than its initial public offering price of $0.25. It was the third
07:39 most actively traded stock on the bourse, with over 148.3 million shares changing hands.
07:45 Post-listing, SSF Home says that it is planning to open 18 new retail stores in the next three years,
07:51 according to its executive director and deputy CEO, Lok Kok Kong. This will raise its total
07:56 stock count from 41 to 59. He says that of those 18 new outlets, three are in Selangor and Kuala
08:03 Lumpur, seven in Kedah, Penang and Perak, six in Negeri Sembilan, Melaka and Johor,
08:08 with the two remaining stores earmarked for East Malaysia. With Bank Negara keeping the key
08:13 interest rate at 3%, Lok expects positive growth for the home furnishing retail sector, with the
08:18 increasing adoption of smart technologies in home furnishing as well as better prospects in the
08:24 local property market. SSF Home, which raised a total of $50 million from its IPO, is principally
08:30 involved in the retailing of furniture, home decor and home living products via its retail
08:35 and online channels.