The Malaysia Airlines (MAS) revamp plan should compose an appropriate business structure for the national carrier in the face of stiff competition in the aviation industry, said Minister in the Prime Minister's Department Abdul Wahid Omar.
He said there is a need to undertake a strategic reset or a hard reset for MAS to be viable, According to the Malaysian News Agency (BERNAMA).
"It needs to operate on a fresh structure that is efficient as the airline industry is extremely competitive," Abdul Wahid said.
He added that RM 6 billion (USD 1.8 billion) overhaul plan unveiled by Khazanah Nasional Bhd is very much an investment as MAS is a strategic national asset, BERNAMA added.
"All of us are very much supportive of the measures, indeed, it is our hope that all Malaysians support the MAS restructuring plan," he said.
Last Friday, Khazanah Nasional unveiled a 12-point plan to enable MAS to return to profitability within three years of delisting.
On the country's economy, Abdul Wahid said the growth rate is expected exceed the 5.5 per cent original forecast for the year on the back of encouraging growth of 6.3 per cent in the first half of the year.
He said the government focus is on strengthening the fundamentals to support short-term economic resilience and long-term structural foundation.
"There is now greater diversification of the Malaysian economy," he said, adding that the share of the manufacturing sector has moderated to 24.5 per cent of the gross domestic product (GDP).
He said services sector now accounts for 55.2 per cent of the GDP, thus the country is on track towards achieving the 60 per cent target by 2020 to reflect a fully developed economy, the source added.
He said the inflation rate has been kept relatively low at 3.2 per cent and Malaysia is now essentially in full employment.