KUALA LUMPUR, Nov 26 ― Singapore's alleged desire for lucrative routes was among reasons that caused the dissolution of the Malaysia-Singapore Airlines (MSA), said billionaire Robert Kuok.
In an excerpt from his memoir reproduced by the South China Morning Post, the former MSA chairman said the island state did not believe it needed to continue serving Malaysian destinations to achieve the goal.
“The Singapore government, which was very good with its abacus, was analysing the economics of the airline industry. They began to realise that the Malaysian domestic routes were profit-making, but looking into the future, they could not see such air travel as big-scale business.
“The international airport in Singapore, and the international traffic, was really the jewel in the crown of the airline industry in the Malaysia/Singapore region,” Kuok wrote.
This prompted Singapore to become ruthless in negotiations with Malaysia in an alleged bid to force the airline to be split.
Kuok also claimed this led to his resignation as MSA's chairman, which he said he had reluctantly accepted in order to preserve Malaysia-Singapore ties at that time.
“I had been under the impression that this link between the two countries would be preserved.
“Now that the decision to split was imminent, I decided to pen a resignation letter that they could not refuse,” he wrote.
The MSA was formed in 1966 following Singapore's expulsion from Malaysia, but was disbanded in 1972 when the two countries decided to create their own national carriers: Malaysia Airline System (MAS) and Singapore Airlines (SIA).
Kuok has a diverse business empire that spans various sectors, but made his fortune from the sugar industry, earning him the title “sugar king”.
His estimated worth of over US$12 billion makes him the richest person in Malaysia and among the wealthiest in the world.
The South China Morning Post is also within Kuok's stable of businesses.
