MAG May Tap Khazanah Funds In 2026 To Support Fleet Expansion, Commitments
KUALA LUMPUR, April 2 (Bernama) — Malaysia Aviation Group (MAG) is looking into drawing on shareholder funding from Khazanah Nasional Bhd this year to support its fleet expansion and maintenance commitments, despite a significant improvement in its operating cash flow.
Group chief financial officer Boo Hui Yee said the group recorded operating cash flow of RM1.9 billion in 2025, a marked increase from RM401 million in 2024.
She said the group still has RM1.77 billion balance from a total of RM3.6 billion allocated by Khazanah since 2019.
The group’s cash balance stood at RM1.53 billion for financial year 2025,.
However, she said the aviation group remains reliant on the post-restructuring funds provided by Khazanah to meet its capital expenditure needs, particularly pre-delivery payments (PDPs) for incoming aircraft and ongoing maintenance requirements.
“For 2025, we drew down RM500 million mainly due to our capital expenditure commitments.
“For this year, because there are more aircraft coming and more PDPs that we have to pay, we expect to also draw down some funds from Khazanah,” she told a press conference after the MAG Annual Performance Update briefing today.
She said MAG expects to take delivery of 10 additional aircraft this year, following 24 aircraft received in 2025 as part of its fleet renewal programme.
— BERNAMA