Malaysia has made no commitment to provide financing support to AirAsia, ministry says

On October 20, the Malaysian Finance Ministry clarified that it has no commitment to provide any financial assistance to AirAsia Bhd, such as guarantees, loans, or injections of public funds. The ministry stated that any applications for government support will be evaluated based on national interests, fiscal sustainability, and the protection of public funds, in line with existing laws and procedures.

The government also emphasized that it will refrain from commenting on any media speculation or reported figures to prevent market fluctuations and safeguard the interests of employees, customers, and other stakeholders.

The ministry's statement came in response to a question from Datuk Seri Wee Ka Siong (BN-Ayer Hitam) regarding potential guarantees, loans, or public funds for AirAsia. The airline had attributed its losses in the latest quarterly financial results to the surge in jet fuel prices caused by the conflict in the Middle East. The ministry acknowledged the issues surrounding AirAsia while noting that the government regularly consults with aviation industry players, technical experts, and other parties to gather input and monitor developments across various sectors affected by the West Asia crisis.

On September 19, the official Bernama news agency reported that AirAsia had not engaged with the government on a potential bailout and remained confident in its liquidity position and business sustainability.