Sabah has what it takes: CEO
Published on: Monday, June 23, 2025
Published on: Mon, Jun 23, 2025
By: Jonathan Nicholas Text Size: Fareh (left) with Invest Sabah CEO Dr Firdausi Suffian who was the moderator. Kota Kinabalu: AirAsia Berhad CEO, Datuk Captain Fareh Mazputra, believes Sabah holds untapped potential to become a driving force in Southeast Asia if it continues to embrace bold ideas, invest in its people, and build resilience. Speaking about the airline's own trials and transformation, he offered Sabah a powerful roadmap. 'Sabah has the recipe to be number one in the region. It's not just about location, it's about the people.' Fareh's remarks as star speaker during the Sabah SME 2025 Conference came at a pivotal time as Sabah looks to elevate its status beyond tourism and into a wider economic spotlight. 'Sabah sits right at the heart of Asean. That's not something to be taken lightly. But what makes it special is that its progress wasn't handed down, it was built from the ground up by its own people. And that's why AirAsia is proud to work hand-in-hand with Sabah,' he said. With Kota Kinabalu now AirAsia's second-largest hub in Malaysia, the airline's presence is not just symbolic, it's strategic.
Advertisement Over the past year, AirAsia has opened new direct routes connecting Sabah to China, Indonesia, and Vietnam, including bold bets like launching the Wuhan–KK and Bandung–KK routes both now showing strong growth. 'We're not afraid to take leaps. Just look at how Phu Quoc Island in Vietnam went from an unknown to a tourist destination. It's the same playbook we believe can work for Sabah.' However, his optimism is grounded in hard lessons. Recalling AirAsia's survival during the COVID-19 crisis, Fareh said the airline had just five operating aircraft while the rest were grounded. Borders were closed, yet lease payments kept coming as revenue dried up overnight. 'We had nothing to ensure income. We couldn't fly, and we had to ask ourselves what came next. It was a crisis that nearly broke the company.' Yet from that collapse came innovation. With what savings they had left, he said AirAsia retained its core staff and began building non-aviation businesses, ventures that today are major players in Malaysia's economy. Among them, Asia Digital Engineering (ADE), now one of the region's largest aircraft maintenance, repair and overhaul companies, set to overtake even Singapore's long-time dominance in the space. 'Covid taught us that depending on one income stream is dangerous. That's why we diversified. And that's exactly the kind of thinking Sabah will need to scale up. Think long-term, build around your strengths, but never rely on just one formula.' For Sabah's SMEs, his message was simple. 'Resilience starts with your people. 'Take care of your people, and they'll take care of you. 'You can't stop people from leaving, but they'll come back with value if you've built the right environment.' Fareh praised the current Sabah leadership and the tourism board, highlighting their willingness to collaborate and push forward. 'We work well with the state because they don't sit still. They want to do more, they want to try. That's what we look for in a partner. 'In the next few years, I truly believe Sabah will become a key vehicle in a regional economic powerhouse.' He also welcomed competition, including the recent discussions around AirBorneo. 'Competition is good. It gives consumers options and only through options do you become better. 'The same applies internally. If you're not competitive, you lose talent. Don't focus on others, focus on being better than yourself yesterday,' he said. As AirAsia continues to grow its presence across Sabah and the BIMP-EAGA region, Fareh stressed that the airline's mission is more than connecting destinations, it's about connecting people, ideas, and economic opportunities. 'Our dream is to keep connecting the dots. We're here to serve the underserved and Sabah is one of the most important dots in that vision.' AirAsia's journey from purchasing a debt-ridden airline for one ringgit to becoming one of Asia's largest low-cost carriers is often seen as a rags-to-riches story. But as Fareh put it, it's about consistency, humility, and the relentless pursuit of better. 'Sabah has everything it needs, the location, the people, and now, the partnerships. What comes next is simply the mindset to simplify, improve, and fly further,' he concluded. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
31 minutes ago
- New Straits Times
Insolvency Department aims to release 200,000 from bankruptcy by end of 2025
SHAH ALAM: The Insolvency Department aims to release 200,000 individuals from bankruptcy by year-end, Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said. She said so far, 186,000 individuals had been discharged, allowing them a fresh start in life. "Last year, we discharged 180,000 individuals. So far, the number discharged is 186,000. We hope to reach a total of 200,000 by the end of the year. "We are trying to expedite this process as it is a directive from the prime minister under the Second Chance Policy," she told reporters after the launch of the Financial Literacy Programme at Public and Private Higher Learning Institutions, held at Universiti Teknologi Mara. Under the policy, it aims to discharge bankruptcy for young individuals aged 40 and below with debts not exceeding RM200,000. Last year, Prime Minister Datuk Seri Anwar Ibrahim stated that people fell into bankruptcy due to various factors, including recklessness, business mistakes, a slow economy, and the Covid-19 pandemic. Meanwhile, Azalina said that from 2021 to May this year, a total of 25,578 individuals were declared bankrupt. Of the total, 70 were individuals aged below 25 years old; 25 to 34 year-old (3,725 individuals); 35 to 44 year-old (10,145 individuals); 45 to 54 year-old (7,256 individuals); 55 years old and above (4,222 individuals), and 160 individuals had no information recorded. Over the same period, men recorded the highest number of bankruptcies with 18,590 individuals, while women at 6,903 individuals and 85 individuals had no information recorded. Earlier in her speech, Azalina said the Madani government continuously strives to enhance the level of financial literacy among Malaysians to build financial resilience and ensure the wellbeing of the people in the future. "This is in line with the principle of ensuring human wellbeing under the strategic pillars of Malaysia Madani. "Therefore, this literacy programme that we are holding today is one of the proactive steps taken by the government to bring laws and knowledge related to financial management and literacy to the people, especially students in institutions of higher learning who are about to enter the workforce and the real world. "Strong financial literacy is crucial to prevent today's youth from falling into serious debt." Azalina added that, according to the records from the department, the majority of current bankruptcy cases involve young people. "We are concerned that if the younger generation, who are the future of the nation, face serious debt issues and eventually fall into bankruptcy, it will be detrimental to the country." Present at the event were the Insolvency Department deputy director Azwarnida Affandi and Universiti Teknologi Mara vice-chancellor Professor Datuk Dr Shahrin Sahib. Ends
New Straits Times
an hour ago
- New Straits Times
Public Bank faces limited impact from RM90mil NFC lawsuit
KUALA LUMPUR: Public Bank Bhd is expected to face limited impact from its ongoing lawsuit, despite recent weakness in its share price, according to CIMB Securities Sdn Bhd. The decline in share price is likely linked to recent news of its legal liabilities, alongside prevailing macroeconomic uncertainties. According to news reports, Malaysia's highest court has found Public Bank liable for RM90 million in damages to National Feedlot Corporation, its chairman Datuk Seri Mohamad Salleh Ismail, and three other entities. The lawsuit involves allegations that Public Bank disclosed confidential information about the plaintiffs' accounts and a proposed property purchase at KL Eco City. A former bank clerk was implicated in the leak. On June 18, the Federal Court awarded RM90 million in damages to the National Feedlot Corporation after dismissing Public Bank's appeal on May 26. The three-member bench comprised Chief Judge of Malaya Tan Sri Hasnah Mohammed Hashim, Chief Judge of Sabah and Sarawak Tan Sri Abdul Rahman Sebli, and Federal Court judge Datuk Abu Bakar Jais. The panel ordered Public Bank to pay RM30 million each in equitable, exemplary, and aggravated damages. "We anticipate limited impact from the lawsuit. We maintain a Buy rating on PBB, as its dividend yield is expected to remain decent," the firm said in a note. CIMB Securities has also maintained an unchanged target price of RM5.10 on the stock. The firm pointed to the bank's resilient asset quality and the potential for a decent dividend yield, supported by the release of capital under Basel III changes set to take effect in 2026. However, it flagged several downside risks, including the possibility of higher-than-expected credit costs, weaker loan growth, and persistently elevated funding costs. It said Public Bank's credit costs could rise to 33 basis points under a more stressed scenario, similar to the peak during the Covid-19 pandemic. "If we also factor in two additional policy rate cuts of 25 basis points each, our dividend per share forecast may be revised slightly lower. The dividend per share would drop by only 1.0 sen, from 21.5 sen currently to 20.5 sen, based on a dividend payout ratio of 59.4 per cent. "However, dividend yield remains quite decent at more than 4.8 per cent for financial year 2025 forecast even under this scenario," it added.
Malaysian Reserve
2 hours ago
- Malaysian Reserve
Bank credit costs seen rising on SME strain
CREDIT costs in the Malaysian banking sector are expected to edge higher as economic growth slows and risks mount within the small and medium enterprise (SME) segment. CIMB Securities Sdn Bhd, in its latest report on historical asset quality trends, is maintaining a 'Neutral' stance on the sector despite forecasting mild deterioration in credit metrics. 'We have reviewed our sector credit cost projections, taking into consideration the potential impact of slower growth on the SME segment and historical trends. Our assumptions indicate that sector credit costs may rise by 12 basis points (bps) on account of a possible change in probability of default assumption for the SME segment. 'However, as this is in line with our earlier assumed 15bps increase in credit costs, we are maintaining our forecasts and 'Neutral' rating,' it noted. The research house said that the SME portfolio remains under scrutiny. 'The initial segment that may face some risk is likely to be the SME segment, which currently accounts for 16.5% of total loans on average for the banks under our coverage,' it stated. 'Assuming probability of default (PD) is raised to 6% from 4.5% for the SME segment, while loss given default is maintained at 50%, this implies that the estimated credit loss (ECL) may need to be raised by 75bps for the SME segment in a slowing growth cycle. On overall basis, this translates to a 12bps increase in sector credit costs,' it explained. CIMB Securities noted that credit costs historically trend in tandem with macroeconomic cycles. 'During a normal economic cycle, credit costs usually range from 20bps to 30bps, while a good economic cycle typically leads to benign credit costs of 10bps-20bps. In a slower growth cycle, credit costs tend to climb higher than 30bps, towards the 40bps-50bps range.' The 2020 pandemic-driven recession provides a stark example. 'The most recent recession during the 2020 Covid-19 pandemic caused a significant jump in credit costs to 79bps in 2020, coinciding with a 5.5% year-on-year (YoY) decline in GDP and an 8.6% YoY drop in exports. Prior to that, during the 2008 recession, credit costs peaked at 70bps as GDP declined by 1.5% YoY and exports contracted by 10.9% YoY.' While direct trade-related loans remain low, secondary risks are a concern. 'Exports-related loans are insignificant, accounting for 1%-4.7% of total loans for banks under our coverage. We reiterate there will likely be a larger impact from secondary spillover effects on trade-related supply chain vendors and suppliers.' CIMB Securities is leaving its forecasts unchanged for now. 'We are maintaining our forecasts for now, as our latest estimate is based on broad assumptions while each bank's portfolio will have a different risk profile.' The firm retains its 'Buy' recommendations on Alliance Bank Malaysia Bhd, Public Bank Bhd and RHB Bank Bhd. 'We maintain our 'Neutral' sector rating, and retain our 'Buy' calls on Alliance Bank, Public Bank and RHB Bank, as dividend yields remain attractive at current levels,' it concluded. — TMR This article first appeared in The Malaysian Reserve weekly print edition
