KUALA LUMPUR (March 21): Khazanah Nasional Bhd said it does not have direct exposure to financially exposed lenders Silicon Valley Bank (SVB) and Credit Suisse Group AG.
"We do not have any direct exposure to SVB. When I say no direct exposure, i mean no shareholding, no bond holding, no deposit, [and] no borrowing. We do not have exposure to the bank," Khazanah managing director Datuk Amirul Feisal Wan Zahir told a press conference on Tuesday (March 21).
In terms of indirect exposure, Amirul maintained that it is insignificant to the sovereign wealth fund.
"When I say indirect, it means that we invest in general partners, and they may have some relationships with SVB, but it is insignificant," he explained. He added that the fund also does not have direct exposure to Credit Suisse.
The latest banking crisis was fuelled by the collapse earlier in the month of two US lenders, SVB and Signature Bank.
In the aftermath of the collapse of SVB, Credit Suisse quickly became the next focal point of concern, after its top shareholder Saudi National Bank ruled out providing it with fresh funding.
Khazanah steadfast in supporting Malaysia Airlines
On Malaysia Airlines Bhd, Amirul said it would continue to support the national flag carrier as the focus right now is to strengthen the airline enough so that it can independently compete with other airlines and operate sustainably.
When asked whether now is the right time to explore strategic partners for Malaysia Airlines, Amirul said that he would prefer to get the airline in a stronger position first.
“Once it [Malaysia Airlines] is on a stronger footing, I think the options are much wider. So, rather than just be fixated on one solution, get the airline steady. I could tell you the options, maybe we might keep it, [or] maybe we might look at alliances. The options are wide,” he said.
Khazanah via Malaysia Aviation Group Bhd (MAG) owns 100% of Malaysia Airlines.
Nonetheless, Amirul said Malaysia Airlines is on track for its five-year turnaround plan.
Called the Long Term Business Plan 2021-2025 (LTBP 2.0), MAGB aims to get Malaysian Airlines to break even by 2023.
The turnaround plan rests on five main pillars: To become a premium Asia-Pacific carrier, recapture the domestic and Asean market, drive deeper commercial partnerships, diversify its revenue streams and make digital the cornerstone of its business.
Amirul also said the airline has spent RM1.3 billion of the capital provided by Khazanah.
To recap, in 2021, Khazanah said it would commit to injecting up to RM3.6 billion into the national carrier over the course of five years for the turnaround plan.
Khazanah de-listed and privatised Malaysian Airlines (formerly known as Malaysian Airline System Bhd) in 2014 after paying RM1.38 billion or 27 sen per share to buy 30.6% of shares it does not own in the airline company.