The Penang government in Malaysia has dismissed claims by its detractors that the state is heading towards bankruptcy, the New Straits Times reported. Chief Minister Chow Kon Yeow, in allaying such fears during his winding up speech at the last day of the state legislative assembly sitting, said the state still has an accumulated reserve of RM1.82 billion as of last year and not RM888 million as stated by Lim Guan Eng.
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Malaysia
Malaysian budget airline AirAsia Group Bhd reported a wider quarterly net loss on Monday, as pandemic restrictions on travel in two of three of its operating markets weighed on revenue, while it logged a foreign exchange loss, Reuters reported. It said that enhanced lockdowns and travel restrictions in Malaysia and Indonesia impacted its aviation revenue, although its Philippines unit had a strong quarter.
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One of Malaysia's major mobile carriers has agreed to use the government's 5G network yet due to transparency and pricing issues, ahead of a rollout planned for next month, a state agency and industry executives said, Reuters reported. However, state-owned network wholesaler Digital Nasional Berhad (DNB) told Reuters it still hoped to launch 5G services in three urban centres, as talks continue with mobile operators.
AirAsia X Bhd.’s shares dived by the most in more than a year after the long haul budget airline was officially categorized as a financially distressed firm, which gives the company a year to recast its finances or risk losing its Malaysian listing, Bloomberg News reported. The stock tumbled as much as 21.1% to 7.5 sen on Monday, set for the steepest drop since August 2020. The shares traded at 8 sen at 10:40 a.m. local time amid volume that was six times the average for this time of day.
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After clearing a key vote in parliament, Malaysia is set to raise the limit on government debt for the second time in a little over a year as it seeks to fund additional pandemic support measures and bolster its economic recovery, Bloomberg News reported. A majority of lawmakers in the lower house voted for increasing the statutory debt ceiling to 65% of gross domestic product until end-2022, from 60%. The bill will next head to the senate, controlled by Prime Minister Ismail Sabri Yaakob’s coalition, before it’s signed into law by the king.
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Malaysia saw 1,246 companies forced to wind down while 10,317 individuals filed for bankruptcy throughout the COVID-19 pandemic from March 2020 to July 2021, Prime Minister Datuk Seri Ismail Sabri Yaacob said, The Edge Markets reported. Of the forced winding-down incidents, some 497 cases or 39.89% were companies registered in the federal territories, followed by Selangor with 273 cases or 21.91%.
IOI Properties Group — controlled by billionaire brothers Lee Yeow Chor and Lee Yeow Seng — submitted the only bid for a mixed-use hotel and residential site as the Malaysian developer doubles down on its investment in Marina Bay, Singapore’s downtown financial district, Forbes reported. Boulevard View, a wholly owned subsidiary of Malaysia-listed IOI Properties, offered S$1.51 billion ($1.1 billion) for the 99-year leasehold site, the Urban Redevelopment Authority said late Tuesday.
Malaysia’s long-haul budget carrier AirAsia X Bhd has obtained court permission to extend the deadline to convene its creditor meetings to March next year, it said on Wednesday, Reuters reported. AirAsia X said the High Court granted an order for an extension until March 17 for it to convene separate meetings of the creditors “for the purpose of considering and, if thought fit, approving with or without modification” a restructuring scheme to be proposed.
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Malaysian Finance Minister Tengku Zafrul Abdul Aziz, who retained the post in the new government announced Friday by Prime Minister Ismail Sabri Yaakob, has his work cut out for him, Bloomberg News reported. In October, Zafrul is set to unveil the 2022 federal budget to what may be the most divided parliament in Malaysia’s history. The spending plan will need to address an economy weakened by protracted lockdowns and a raging Covid outbreak, amid steep financial constraints and a deficit target that was already revised higher twice this year.
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The number of Malaysians becoming bankrupt and the number of companies closing down or winding up may increase when the current moratorium on bank loans ends, two economists said, Malay Mail reported. Sunway University economics professor Yeah Kim Leng said that the loan moratorium allows financially-distressed borrowers to avoid becoming bankrupt by postponing loan repayments, but said this would mean that there could be more bankruptcies once the moratorium period ends, The Sunday Star reported today.
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