Currently, MAS is having a very high load and yet the company is losing money. There are too many things have gone wrong in MAS, splitting MAS will not improve MAS financially.
To return MAS to long term profitability, MAS need is to overhaul the entire organization i.e. management, schedule planning, marketing, ticketing, operation, catering, etc, boosting staffs morale, reducing staffs number by 30% to 40%, undoing 'Mr. 019's privatization' and above all promotion should be based on ability to work and seniority rather than whom you know. Basically, re-start from ground zero.
With MAS track record, it is unlikely for any major foreign airline to take minority interest without management control. However, joining airline alliance is inevitable. With relatively close relationship with KLM and Wing Alliance don't have a South East Asian partner, Wings Alliance should the forerunner.
just my 2 cents of input.