A storm of controversy has emerged in Malaysia over its aviation sector, the fate of Malaysia Airlines, and the purported involvement of Singapore-owned company, SIA Engineering Company (SIAEC). On Aug. 28, 2024, Malaysia’s Transport Minister Anthony Loke held a press conference, where he blamed flight disruptions of Malaysia Airlines on a shortage of aircraft engineers and mechanical components. There have been several cases of Malaysia Airlines flight disruptions in late August 2024 and early September 2024, including a Seoul-bound flight that had to return to Kuala Lumpur an hour after takeoff.
## Background
The controversy surrounding Malaysia Airlines has intensified due to a series of flight disruptions attributed to a shortage of skilled workers and mechanical components. This issue has been exacerbated by the involvement of SIAEC, which has been accused of poaching skilled workers from Malaysia Airlines. The situation has drawn significant political attention, with various stakeholders weighing in on the matter.
## Anthony Loke slammed by previous transport minister
Anthony Loke’s comments have drawn criticism from his predecessor, Wee Ka Siong. Wee, who served as transport minister in the coalition Perikatan Nasional government in 2022, blamed Loke for his apparent “failure” to prevent a “brain drain” of skilled workers in the aviation sector. Loke and Wee have a unique relationship as coalition partners in the Anwar government, despite their historical opposition, with Wee’s MCA being part of Barisan Nasional, previously opposed to Pakatan Harapan (PH).
## Significant milestone for SIAEC
Wee referred to SIAEC obtaining a 15-year lease for hangars in Subang Airport in Selangor, which began in December 2023. An SIAEC press release described the move as a “significant milestone,” establishing SIAEC’s third base maintenance hub in the Asia-Pacific region. The acquisition of the hangars, each able to accommodate two wide-body aircraft, boosts SIAEC’s capacity to provide services for an “expanding portfolio” of airline customers. Wee initially approved the initiative for its investment potential but later implored Loke to consider its impact on Malaysian companies. He stated, “Stiff foreign competition for skilled labour was brought to MAS’s homeground. So when a foreign company with a stronger currency like SIAEC operates in Malaysia, how is MAS supposed to find workers? When a more lucrative job offer is available, it is obvious our people will make the switch.”
## Anwar pledged to support Malaysia Airlines, Wan Ahmad Fayhsal accuses govt of “sabotaging” carrier
Firebrand Bersatu member of parliament, Wan Ahmad Fayhsal, also criticised the Anwar government for allowing a company linked to SIA to operate in Malaysia without restrictions on “poaching” staff. “How can Anwar allow this to happen?” Wan Ahmad said, accusing the government of “sabotaging” Malaysia Airlines. His comments came a day after Anwar spoke at a public event, pledging his government’s support for Malaysian Aviation Group and Malaysia Airlines. Anwar blamed cronyism for damaging the national carrier and promised to fix “political problems,” although he did not specify if the government would be financially supporting the group.
## Future implications for Malaysia Airlines
The ongoing controversy has significant implications for the future of Malaysia Airlines and the broader Malaysian aviation sector. The involvement of SIAEC and the alleged poaching of skilled workers highlight the challenges faced by local companies in retaining talent amidst foreign competition. The political fallout from this issue could influence future policies and regulations governing foreign investments and labour practices in Malaysia. As the government navigates these challenges, the stability and growth of Malaysia Airlines remain uncertain, with potential impacts on the national economy and international aviation partnerships.
