A top-priority police inquiry regarding the activities of the founder of MYAirline, Allan Goh Hwan Hua, has extended beyond the recent downfall of the budget airline – now encompassing allegations of money laundering, unauthorized deposit-taking programs, and fraudulent activities. The lawsuit has been brought by 15 individual investors who claim that the defendants have not fulfilled their obligations to repay funds that were lent to them.
Legal proceedings against the founder of MYAirline (Z9, Kuala Lumpur Subang) and four other associated entities were initiated in mid-2022. The case has recently surfaced following the collapse of MYAirline earlier this month. Mr Goh, along with firms such as i-Serve Online Mall Sdn Bhd, Bright Moon Venture PLT, QA Smart Partnership PLT), and Trillion Cove Holdings Bhd, are currently in the process of defending a lawsuit filed against them in the Malaysian High Court.
Malaysia’s Transport Minister, Anthony Loke has disclosed this week that the government is currently looking into the circumstances surrounding the issuance of MYAirline’s license by the previous administration. Additionally, he publicly criticized the Malaysia Aviation Commission (MAVCOM), the national aviation licensing agency, for the sudden shutdown of the airline’s operations on October 12. This closure left more than 10,000 passengers stranded as they arrived at unmanned ticketing counters at the airport, despite there being 39 scheduled flights for that day.
MYAirline commenced operations in early December 2022, offering scheduled flights between Kuala Lumpur and destinations such as Kota Kinabalu, Kuching, and Langkawi. Subsequently, the airline extended its services to Thailand and Bangkok. According to reports, there were intentions to expand the airline’s fleet from nine aircraft to 26 by the end of 2023.
In connection with the investigations into suspected money laundering and fraud, the police arrested Mr. Goh, aged 57, his wife, Neow Ean Lan, aged 55, and their son, Sean Goh Tze Han, aged 26, last week. Subsequently, their bank accounts were frozen, and luxury items were seized.
Mr Goh, a discreet entrepreneur known to be close to the senior leadership of the Malaysian Chinese Association (MCA), a well-established ethnic Chinese political party in the country, holds a 31.7 per cent stake in i-Serve Online Mall. By way of various privately owned entities with distinctive names, including Zillion Wealth and Trillion Cove Holdings, this businessman commands a 98 per cent ownership interest in MYAirline.
The recent uproar surrounding MYAirline, attributed by the company to “severe financial difficulties,” is the most recent setback in Malaysia’s aviation industry, which is grappling with challenges arising from having five operators in a relatively compact domestic market. Furthermore, there are additional longstanding financial issues that stem from the challenging period during the pandemic.