AirAsia’s founder, Tony Fernandes, has called for Singapore Airlines Engineering Company (SIAEC) to be “fully transparent” regarding its recruitment of engineers from Malaysia Airlines. In a LinkedIn post, Fernandes challenged SIAEC to disclose details such as salaries and the origins of its workforce. He questioned, “So where did the other 90 per cent come from? And what salaries are you paying? Let’s be transparent. So your 90 per cent are all school leavers?”
Background
Fernandes’ statement followed SIAEC’s announcement that less than 10 per cent of its hires are from the engineering arm of Malaysia Airlines, MAB Engineering Services. This came after reports that 63 out of 411 engineers from MAB Engineering Services had left to work for SIAEC since January 2024. The news sparked criticism from Malaysian politicians, who accused the Malaysian government of allowing a Singapore-owned company to ‘poach’ workers from Malaysia Airlines.
Fernandes clarifies support for SIAEC in Malaysia
Despite his criticism, Fernandes clarified that he supports SIAEC’s presence in Malaysia, citing the benefits for the country and his belief in a free market. However, he also highlighted that both Singapore and Malaysia are aware that he has been trying to get approval for AirAsia Singapore for at least 10 years. Fernandes argued that Singapore needs “real competition” similar to what Malaysia and other ASEAN countries have. He stated, “We are in five ASEAN countries. The people of Singapore have little choice. I even tried to buy a low-cost carrier there but it was turned down. If you want an open ASEAN, Singapore needs to stop protecting and have real competition like Malaysia and other ASEAN countries have.”
Political reactions
The recruitment of Malaysian engineers by SIAEC has not only drawn Fernandes’ ire but also that of Malaysian politicians. They have criticised the Malaysian government for allowing what they term as ‘poaching’ by a Singapore-owned company. This controversy has added another layer to the ongoing debate about labour mobility and market openness within the ASEAN region.
Implications for ASEAN market competition
Fernandes’ comments underscore a broader issue of market competition within ASEAN. His call for transparency and open markets reflects ongoing tensions between countries in the region regarding economic policies and labour practices. The situation highlights the need for a balanced approach to market openness that benefits all parties involved.
Future developments
As the debate continues, it remains to be seen how SIAEC and the Malaysian government will respond to these criticisms. The controversy could prompt further discussions on labour mobility and market competition within ASEAN, potentially leading to policy changes. Fernandes’ persistent efforts to establish AirAsia Singapore may also gain renewed attention in light of these developments.
