AirBorneo is Sarawak-owned, so why does Putrajaya still subsidise it?
The RM209 million subsidy ensures rural residents continued access to healthcare, education and essential services despite the change in airline ownership.
The federal government has allocated RM209 million for rural air services in Sabah and Sarawak, benefiting around 820,000 passengers, despite AirBorneo's ownership by Sarawak. Economist Firdausi Suffian argues that subsidies should be evaluated based on their importance to locals rather than the airline's ownership. These subsidies maintain affordable air travel in areas with limited alternatives, ensuring residents' access, especially in emergencies.
However, not all AirBorneo routes receive subsidies; the Kuching-Sibu, Kuching-Miri, and Kuching-Bintulu routes are excluded from the rural air services as they can operate commercially. For civil servants Gwynth Vincent and Michael Roman, flights save significant time compared to road travel, which can be hazardous and time-consuming.
Similarly, civil servant Nuruddin Sabali relies on AirBorneo for work and supplies transport in remote areas, emphasizing that subsidies are crucial for maintaining essential services. Firdausi Suffian advocates for subsidies based on the services' value to residents, not profitability, and stresses that road improvements could diminish the need for subsidies, but the government must ensure these essential services remain accessible for the welfare of the people.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
