ContentsSummary of MASwings...........................................................................................................................2

Programs................................................................................................................................................3

Project VSAT.......................................................................................................................................3

Project PINTAR...................................................................................................................................4

Project Our Children, Our Future.......................................................................................................5

Other Programs..................................................................................................................................7

What is the rationale the firm uses to support CSR activities?...............................................................8

What is the response from those affected by the programs?................................................................9

What is the response, if any, from those who oppose the programs?.................................................10

Do you think the company is benefiting from the program to the extent of the program’s cost?.......11

Recommendation for future CSR..........................................................................................................12

Conclusion............................................................................................................................................13

Team photo..........................................................................................................................................14

References:...........................................................................................................................................16

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Summary of MASwings

MASwings Sdn. Bhd. is a wholly owned subsidiary of Malaysia Airlines Sdn. Bhd. It is a regional airline operating the Rural Air Services (RAS) in East Malaysia. Malaysia’s first commuter airline was officially launched on 1 October 2007. MASwings objective is to provide affordable fares, convenient schedule and connections for the people of Sabah and Sarawak to travel within the two states in the Malaysian Borneo. Its current slogan is ‘Community’s Wings of Love’. In 2011, MASwings continued its initiatives to improve productivity and enhance its customer service, as well as reducing operational costs. With the introduction of self check-in kiosks at the Kota Kinabalu and Kuching airports to increase the Company’s customer value proposition, approximately 80% of MASwings customers have seen to use this facility. In 2012, the airline expanded its horizons and further spreading its wings by adding flights to Bandar Seri Begawan, Brunei, Pontianak and Tarakan in Kalimantan, Indonesia to support Sabah and Sarawak’s participation in the East ASEAN growth area of BIMP-EAGA trade zone. Ever since MASwings was founded, it has always been playing a pivotal role as a strategic tourism industry player in both Sabah and Sarawak.

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Programs

Project VSAT

MASwings’ managing director, Captain Nawawi (right) poses next to a VSAT unit at the Ba’Kelalan STOL port.

At MASwings, ‘Wings of Love’ focuses on 3 key areas such as community-related activities, education-related activities and environment-related activities. The VSAT project also known as Very Small Antenna Transmitter is by MASwings to install it for the local community access to wireless internet service. It was launched in August 2011 in Bario and Ba’kelalan, northern Sarawak by Yang Berhormat Senator Dato’ Sri Idris Jala, Minister in Prime Minister’s Department. This project is part of the community program. The VSAT is provided by Maxis Berhad. Maxis is the only communications service provider in Malaysia to adopt a combination of efficient and green VSAT, nanoGSM, Wi-Fi and solar power technologies to deliver to rural areas Global System for Mobile Communications (GSM), voice, messaging and data services. At this present day, it’s almost difficult to catch up with the modern world happenings without internet access. As technology advances further around the globe, MASwings launched the program hoping to improve the welfare of the people in the rural area of Sarawak. With regards to the project, it also enables the people there to have access to borderless bookings where they can purchase domestic and international flight ticket, seats selection, automated check-in facility and other internet offerings by MASwings and Malaysia Airlines.

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Project PINTAR

Captain Nawawi (right) greeted by primary students of SK Ba’Kelalan

As part of the education program in the 2nd key area under the ‘Wings of Love’ project, project PINTAR is an extension to the ongoing project by Malaysia Airlines in West Malaysia. Project PINTAR under MASwings is a school adoption program and to-date has 3 schools, SK Bario, SMK Bario and SK Ba’Kelalan – all in Sarawak under its care. MASwings involvement in this project is aiming to raise awareness on the importance of education, to improve the academic standards and attainment of underprivileged children from their deprived social-economic conditions in the rural areas. All these are parts of MASwings’ commitment to support the government in its quest towards becoming a developed nation by the year 2020 under the vision of our former Prime Minister, Tun Dr. Mahathir bin Mohamad ‘Wawasan 2020’. Within Wings of Love, MASwings will seek for the outmost cooperation from engaging parents, teachers, the whole local community as well as MASwings staff to motivate the children to learn and excel in their studies. As a whole, MASwings want to positively push the students and the teachers towards excellence. As a challenge, it is hopeful that the schools will achieve 100% pass in UPSR and PMR examinations as well as increase in straight-A results. Education is essential for everyone regardless of age. As a young kid, it is even more crucial as a basic of learning. Like a wise man once said, “wisdom is not a product of schooling but of the life-long attempt to acquire it.” With regards to the initiatives taken by MASwings, the upcoming future generations of children from Bario and Ba’kelalan will see and certainly have a brighter and better future in themselves.

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Project Our Children, Our Future

Students and teachers arrival at Subang airport

The 2nd project in its education-related program under the ‘Wings of Love’ project is called, Our Children, Our Future. This project is an educational familiarisation trip to the peninsula meant for the students from the interiors/rural areas of Sabah and Sarawak. It was first incepted in 2010. In December 2010, there were 20 primary school students from Sabah and Sarawak – all high achievers in their academic performance along with 10 of their teachers who were given the privilege to visit tourist destinations. Meanwhile in December 2011, MASwings rewarded 23 top scoring Primary 6 Ujian Penilaian Sekolah Rendah (UPSR) from the rural areas of both states by realising their dreams. MASwings rewarded these bright minds with a three-day visit to destinations in Kuala Lumpur and Putrajaya such as Malaysia Airlines Complex in Subang and the Planetarium and Petrosains in Kuala Lumpur City Centre (KLCC). During the visit to the Malaysia Airlines Complex, they were given the opportunity to have a closer look at the engineering and maintenance hangar and the Flight Stimulator Training Centre. At Planetarium, they were treated with our very own Malaysia-made animation, ‘Upin Ipin’. Meanwhile at KLCC, the students experienced something new and beyond to them. They were shown the 3-D animation cartoon of ‘Rapunzel’ and of course, they were thrilled.

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Datin Seri Rosmah Mansor photo session with UPSR top scorers at Seri Perdana Putrajaya

The final day of their three-day long trip saw the students probably enjoyed a once-in-a-lifetime experience – high tea with the current Prime Minister’s wife, Datin Seri Rosmah Mansor at the PM’s residence there. It was a 2 ways benefits for both the hosts and the students as priceless cultures and experiences were exchanged. At the Seri Perdana, the students performed ngajat and a traditional Sabah dance to the tune of a Gunung Kinabalu song for their gracious host. Datin Seri Rosmah who is the patron of MASwings community service project later handed out school bags, uniforms and prizes to the students at the tea reception. Aimed at exposing the students the life outside their rural settings, it was certainly an eye-opener for each and every one of them (we’ll discuss about their responses later in this report). To conclude this project’s report, we’ll quote an inspirational quote for everyone by the YB, “Poverty should not become an obstacle to hinder children from achieving their ambitions or dreams.”

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Other Programs

The 3rd key area in MASwings ‘Wings of Love’ project is the environmental-related activities. MASwings’ commitment to champion the cause of protecting the planet and saving the environment led to the airline to conduct an internal campaign on email. The campaign which requested all personnel of MASwings to reduce printing unnecessary documents, in other words, reduce the use of papers. Earlier this year in April, MASwings allocated RM 20,000 to SMK Kemburongoh in Sabah. It is the first school in Sabah to be adopted under the Wings of Love program. Captain Nawawi noted that as part of their community and education program, its aimed is to create an atmosphere of conducive environment for students and ensured that they could be formed to be good leaders in the future. Other activities initiated by MASwings include motivational talk, leadership course, course to improve English proficiency, contribution of revision books and a career talk in the aviation industry to the students.

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What is the rationale the firm uses to support CSR activities?

Moving on, it’s a question all of us wonder, “why would a company go to such extent of doing and contributing so many activities and so much of money into CSR programs?” Here, we shall quote a reply by the Corporate Communications and Adminstration Executive of MASwings, Rozanah Robert during the interview session.“The project is aimed at increasing MASwings’ involvement in any CSR projects individually or with other organisation and/or charity body to further position the airline as a concerned community airline and ultimately transformed MASwings to become an icon or symbol of pride for Sabah and Sarawak.” In our opinions, the keywords from what she said are, “symbol of pride for Sabah and Sarawak.” Given that, a firm totally cannot position itself as a respectable company if it did not participate or create its own community projects. MASwings believes that to build on its reputation as the top airline in Malaysia in particular Sabah and Sarawak, profitability through sales of tickets and other add-ons are not the only way. With CSR activities, MASwings is able to consistently engage with not only the customers/patrons but the whole community – whether the locals have ever heard of the company or not. It’s just an alternate way of saying from MASwings’ perspective that they would like to thank the patrons by returning the profits they gained back to the community especially the rural areas to improve the standards of living of at least equivalent to urban areas. In other words, MASwings would like the people in the rural areas to grow together with them. As Captain Nawawi said, “we’re considered a lifeline by the rural community. No doubt, we aim to be exactly that – and more.”

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What is the response from those affected by the programs?

MASwings is pleased that those affected by its on-going CSR programs has shown and getting positive results especially in the education related matters which covers mostly rural schools, in particular MASwings adopted schools in both Sabah & Sarawak. Based on the programs listed throughout this report, those who were affected are the community, students, teachers in the rural areas of Sabah and Sarawak and employees of MASwings. It is pleasing to say that everyone were thoroughly thrilled and made happier from the programs by MASwings. To list a few, the community is now able to access to wireless internet when a few years back, they could not even get constant electric supply. As for the students and teachers, they were able to experience life outside their rural settings in Kuala Lumpur and Putrajaya with skyscrapers such as KLCC and wearing 3-D glasses for a 3-D movie. The following are responses by students who were at the high tea reception with Datin Seri Rosmah Mansor for their academic excellence: Cerollyn Carmila (SK Pekan 2 Pitas Sabah) said she was happy for providing her the opportunity to visit other parts of Malaysia – “Thanks to MASwings for the amiliarization trip. It was an eye-opener.” Beatrice Rinai Joannes (SK Pekan 2 Pitas Sabah) said she was grateful that her hard work in obtaining As in UPSR had been rewarded by MASwings. To add on, parents who worked hard to provide their children the essential education needed felt MASwings’ contribution is like a reward.

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What is the response, if any, from those who oppose the programs?

Based on our session with the person in-charge, there isn’t anyone that opposed the programs. To discuss, we shall each take an exemplary role by viewing this from a (the) shareholder(s), member(s) of the directors, personnel, government and community perspectives. From both a (the) shareholder(s) and member(s) of the directors’ point of view, such CSR activities may seem like a waste of financial resources to increase the airplanes’ performance and improve the operation facilities. Yet, the reason why they wouldn’t oppose to such program is simple. It’s much more effective to build on the community trust and belief in your non-profitable activities than to improve your services. When you do that, the people will value your company better than ever through corporate responsibilities. From an employee of MASwings view, he is given the opportunity to engage with the locals of the rural areas to share their stories. An example would be a person who grew up in the city may find the stories of the community in the rural areas an inspiration to him as life in such areas may not be a smooth road. It’s a rocky and rainy road. The Malaysian government would be more pleased than opposed to see such programs being carried out to improve the social welfare of the people especially in Sabah and Sarawak where it is a challenge for them to reach out to their social needs. From the people of the community view, the society will view MASwings as doing charitable works for the less fortunate part of the society. There is absolutely no reason whatsoever to oppose so many countless of programs that is actually beneficial for everyone.

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Do you think the company is benefiting from the program to the extent of the program’s cost?

In any sort of business activities, if the profitability generated is less than the cost incurred, one would not choose to do it. In corporate responsibility, such profits are not seen from the figures generated but through the society’s value of your company. Here, we take the words of MASwings which talk about such beneficiary is worth it to the extent of all the programs’ costs. In any corporate company (for this instance it’s MASwings), CSR projects and activities will benefit the company as positive image and public’s awareness of the company’s existence will be raised and looked high upon at in the long run. Adding on to that, in most corporate company, certainly yearly allocation will be budgeted for such purpose and that will not affect the budget for the airline’s operation and marketing strategies. This allocation amount will increase/decrease yearly subject to MASwings’ financial position and branding purposes. There are 4 social responsibilities that can be categorized such as economic, legal, ethical and philanthropic responsibilities. What MASwings does it more on philanthropic responsibilities although at certain periods of the year, economic responsibilities too is part of their programs. As mentioned earlier, their philanthropic responsibilities such as making charitable contributions by adopting school in the rural areas and rewarding top scoring academic students are additional behaviours and activities that society finds it desirable and that the values of the business support. It’s a way to build goodwill in a variety of stakeholders and even add to shareholder wealth.

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Recommendation for future CSR

MasWings should create a mou between them and Ministry of Higher Education to provide discounted flight ticket fare for students that are studying at Borneo such as UMSKAL. Discounted fare as much as 30 – 40 percent seems fair enough to encourage students to use MasWings.

This can help increase student’s participation and encouragement level at the same time because they might have to endure a difficult and tiresome journey back to their hometown by using other means of transportation such as bus, ferry and so on. Especially students who’re heading to Tawau which journey by bus will take up about 10 hours or so.

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Conclusion

In a nutshell, CSR is an excellent activity that helps improve the relationship between MASwings and the East Malaysia communities. Through our 2 interview sessions with the Operational Manager of MASwings in Labuan, Mr. Abdul Malik Bin Hassan and Corporate Communications and Adminstration Executive of MASwings, Rozanah Robert, we found out that most of the people involved all the CSR programs are made happier in the process. The benefits gained from those programs were much much more than they expected. People from the rural areas get to know MASwings more and believe that MASwings is a lifeline in their lives. Such a big company actually do concern about them. Just as one of the fantastic story coming from the small the rural area of Bario, MASwings was able to make its first engagement by bring the first officer pilot, Raphael Peter, a Bario-born who awaits promotion to a captain. If such formerly a fairytale story to the people in the rural areas, it is now a reality and made possible to them. Therefore, in an overall view, corporate social responsibilities have their own potential to grow further in the coming 10 to 20 years. We feel that many other companies, be it small or big, should pay attention to issues such as this.

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Team photo

Mas Wings In Labuan Airport

TEAM PHOTO

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Operational Manager of MASwings in Labuan,

Mr Abdul Malik Bin Hassan

Mas wing board director

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References:

1. Ghazali, G. (2011, August 21). Wings of Love. Retrieved from The Borneo Post: http://www.theborneopost.com/2011/08/21/wings-of-love/

2. Ghazali, G. (2011, July 25). Partnership Aims to Improve ICT in Rural Areas. Retrieved from The Borneo Post: http://www.theborneopost.com/2011/07/25/partnership-aims-to-improve-ict-in-rural-areas/

3. Jenis, A. (2010, Decemeber 12). MASwings rewards UPSR High Scorers. Retrieved from The Borneo Post: http://www.theborneopost.com/2010/12/12/maswings-rewards-upsr-high-scorers/

4. Top Students Feted by Rosmah. (2010, Novemeber 30). Retrieved from TheStar Online: http://thestar.com.my/news/story.asp?sec=nation&file=/2010/11/30/nation/7526501

5. MASwings allocates RM20,000 for adopted Ranau school. (2012, April 18). Retrieved from MASwings: http://www.maswings.com.my/press/12041801.html

6. MASwings "Wings of Love". (2011, July 21). Retrieved from MASwings: http://www.maswings.com.my/press/110721.html

7. Two Sabah schools under MASwings’ Wings of Love Program. (2011, Novemeber 18). Retrieved from MASwings: http://www.maswings.com.my/press/11111801.html

8. Nor, M. (2012, November 9). Corporate Social Responsibility. (Daniel, Mcnilson, & Eli, Interviewers)

9. Bateman, T. S., & Snell, S. A. (2013). Corporate Social Responsibility. In Management: Leading & Collaborating in a Competitive World (pp. 181-183). 10th edition. New York McGraw-Hill.

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