A Letter from the Managing Director

There is no question that MAS is in crisis within the increasingly challenging Asianairline industry. Today, we have a cash and profit crisis. On current businessassumptions, course and speed, we will surely fail unless we radically change theway we run our business.I am convinced that with decisive action, MAS can be a success and emerge as awinner. We have a plan—

The MAS Way

—a plan that will turnaround the businessin 2 years. There are already promising early results and a groundswell of energythat give me confidence that we will realise an all-time high profit for MAS in 2008of RM 500 million. In my first three months as MD/CEO of Malaysia Airlines, wehave been working very hard to prepare a robust Business Turnaround Plan. It isour roadmap going forward.This will be a long, winding and difficult journey and it will require unleashing thetalents of all our employees and the support of all our stakeholders. We will winthis together.The GLC Transformation Program launched by the Government in 2004 has gonea long way to making this possible. It has provided the necessary 'air-cover' andacts as the spearhead for our business turnaround. We will continue to workwithin the guidelines prescribed by the GLC Transformation Manual.I am fully aware that our stakeholders particularly in Malaysia are very interestedin the affairs of MAS. Whilst this document is aimed primarily at communicatingthe Business Turnaround Plan to our staff, we felt that it should be made availableto selected external stakeholders. My team and I have decided to be as transparentas possible about our problems and how we intend to address them, withoutdisclosing confidential and competitive information. What we are definitely NOTdisclosing is how precisely we are going to implement the plan. The key to successis indeed in the execution of this plan and that is our secret.Over the next three years, look for regular updates on our progress and the impactof our actions. Much lies ahead of us, but we will succeed.

Idris Jala

Managing DirectorMalaysia Airlines27 February 2006