KUCHING – The Federal Government has reaffirmed its commitment to enhancing air connectivity in Sarawak with the allocation of RM209 million in subsidies for Rural Air Services (RAS) under the Fourth MADANI Budget.
Minister of Finance II, Senator Datuk Seri Amir Hamzah Azizan, said the subsidies are intended to benefit rural and remote communities, ensuring that residents in isolated areas continue to have access to reliable air travel.
The support comes alongside the upcoming launch of state-owned airline AirBorneo, which is scheduled to begin operations in January next year.
“Even with AirBorneo scheduled to begin operations in January next year, the Federal Government is still providing RM209 million in subsidies for rural air services, consistent with previous allocations,” he explained during a forum session at the 2026 Sarawak Budget Conference held at the Borneo Convention Centre Kuching (BCCK) on Tuesday.
Datuk Seri Amir emphasised that the subsidies reflect the government’s broader strategy to bridge connectivity gaps and strengthen Sarawak’s regional development.
He noted that the continuation of RAS funding demonstrates consistency in federal support, even as new state initiatives like AirBorneo take shape.
Turning to the Malaysia Agreement 1963 (MA63), he highlighted that significant progress has been made in fulfilling commitments under the framework.
He credited the MA63 Implementation Action Council (MTPMA63) for driving many of these achievements.
“Sometimes people focus on what has yet to be done and forget what has already been achieved. Under the MA63 framework, many original commitments have already been delivered,” he said.
The announcement underscores the government’s dual focus on infrastructure and governance, ensuring that Sarawak’s aspirations for improved connectivity are matched by tangible support.
With AirBorneo’s entry into service and continued RAS subsidies, rural communities are expected to benefit from enhanced mobility and economic opportunities.
