Malaysia Airlines today said it would choose the "best candidate" to head the national carrier after reports it was looking for a foreign head sparked a storm of controversy.

"Malaysia Airlines will not necessarily and does not especially look for a foreigner to be chief executive," it said in a statement.

However, "it will seek the best candidate it can get taking into account all the factors that will ensure the companys commercial success."

Politicians and pundits alike have debated the merits of having a foreign chief for a national company after media reports over the weekend said Malaysia Airlines could be considering an expatriate to boost its performance.

The airline last week posted one of its worst ever quarterly losses, with a RM280.66 million net loss in the three months to June, from a profit of 26.58 million ringgit a year earlier.

Managing director Ahmad Fuaad Dahlan resigned at the same time, prompting the reports that a foreigner might be brought in to improve competitiveness.

The government's investment arm Khazanah Nasional, which holds a 69.3 percent interest in the airline, was reportedly considering approaching several "big names" from overseas for the position, to boost its flagging performance.

Speculative news

But Malaysia Airlines said the reports it was looking to hire a foreign chief executive were "based on speculation".

It added that the board of directors of the company would carry out its responsibilities with a duty of care and in the airline's best interests.

Former premier Dr Mahathir Mohamad on Monday warned that any moves to appoint a foreign head for Malaysia Airlines had to be made carefully, alluding to sensitivity over expatriates helming national companies.

The alleged plan was also criticised by Education Minister Hishamuddin Hussein, a leader in the ruling Umno, as "another form of colonisation."

Prime Minister Abdullah Ahmad Badawi said Sunday that he would prefer hiring a Malaysian for the job, but did not rule out the possibility of taking on a foreigner.

After posting the disappointing result quarterly result, Malaysia Airlines announced an ambitious five-year plan to boost profits by up to 1.0 billion ringgit, including shaking up its management.