A week after Malaysian budget carrier MYAirline abruptly announced it would be suspending its services due to financial pressures, its co-founder was detained by the police as part of a money laundering probe.

Goh Hwan Hua, 57, who is also one of the airline's major shareholders, was arrested along with his wife, Neow Ean Lee, 55, and their son Goh Tze Han, 26, at their Selangor residence on Tuesday (Oct. 17).

Director of the Commercial Crime Investigation Department in Bukit Aman, Malaysia, Ramli Mohamed Yoosuf, stated that the trio has been remanded to assist in investigations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, according to The Star.

He added that thorough checks are being conducted on their assets and bank accounts, and that the department will decide if more arrests are necessary.

Director of firms which hold the majority of the airline's shares

According to The Edge, Goh is listed as a director of private firms Zillion Wealth and Trillion Cove Holdings.

The Edge also quoted records from the Companies Commission of Malaysia which stated that Zillion Wealth and Trillion Cove hold the large majority of MYAirline's share, with the small remainder held by former chief executive officer Rayner Teo.

Teo had stepped down from his position in the airline earlier in October, due to health reasons.

In a press conference on Oct. 16 (Monday), a MYAirline representative said that Goh was willing to relinquish all of his stake in order to sustain the airline.

Linked to other companies facing investigations

Since last year, Goh and Neow have also been embroiled in investigations involving other companies that they are linked with.

The pair are shareholders of e-commerce platform i-Serve Online Mall, which along with its affiliates, was believed to be involved in illegal deposit-taking and money laundering between 2018 and 2021.

Malaysia's central bank, Bank Negara Malaysia fined the company RM50 million (S$14.4 million) and froze a number of its bank accounts last November, reported The Star.

Background on MYAirline suspension

On Oct. 12, MYAirline had announced on social media that it would be indefinitely suspending its operations with immediate effect.

The airline stated that the suspension was "necessary" due to "significant financial pressures", and shared that it was awaiting shareholder restructuring and recapitalisation.

This stranded thousands of passengers in Malaysia or elsewhere, many of whom had travelled to the airport only to find empty MYAirline service counters there.

Other rival local airlines, including AirAsia and Batik Air, picked up the slack, offering alternative flight options to MYAirline's affected passengers, according to FreeMalaysiaToday.

AirAsia also offered to hire MYAirline staff.

In response, Malaysian Transport Minister Anthony Loke criticised the airline's handling of the situation, and demanded a public apology for the passengers affected, reported The Malay Mail.

He added that the government would be working closely with the airline to expedite refunds for passengers with unused tickets.

Prior to the shutdown, MYAirline was also facing allegations over unpaid staff salaries, late payment to service providers, and difficulties in raising funds for new aircraft leases, according to The Edge.

Top image from Sensasi Selebriti website / MYAirline Facebook.