Air Borneo Sarawak S Billion Ringgit Gamble Or The Next Big Thing

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AS Sarawak approaches the halfway mark of its Post-COVID-19 Development Strategy 2030 (PCDS 2030), one of the most ambitious developments is the launch of Air Borneo, a state-owned airline that promises to be more than just a transportation service.
More than that, it is touted a platform for economic growth, cross-border knowledge transfer, and rural entrepreneurship.
But is this a visionary leap forward or a risky venture that could drain public funds?
Catalyst for entrepreneurship
The establishment of a state-owned airline presents a unique opportunity to drive entrepreneurship across multiple sectors.
By leveraging Air Borneo’s in-flight ecosystem, local businesses, artisans, and entrepreneurs can introduce Sarawak’s rich cultural and culinary heritage to a broader audience.
Flight meals with a local touch: The airline can source its in-flight meals from rural communities, featuring traditional Sarawakian dishes such as manok pansoh (bamboo chicken), umai (raw marinated fish), and linut (sago-based dish). This initiative not only promotes local cuisine but also provides economic opportunities for rural farmers, caterers, and food entrepreneurs.
Flight merchandise from rural craftsmanship: Air Borneo can showcase handmade crafts such as woven baskets, beadwork, and textiles from indigenous communities as exclusive in-flight merchandise, offering passengers a unique piece of Sarawak’s culture while supporting rural artisans.
Design collaboration with local artists: Aircraft livery, crew uniforms, and even ticket designs can feature traditional Sarawakian motifs, bringing indigenous art to an international audience and fostering local creative industries.
Advertising for Sarawak businesses & destinations: In-flight entertainment and magazines can highlight Sarawak-based businesses, tourism destinations, and investment opportunities, giving local enterprises access to a global market.
A platform for knowledge and innovation: The airline’s in-flight magazine can feature opinions, research, and insights from Sarawakian experts, entrepreneurs, and thought leaders, facilitating knowledge exchange and fostering inspiration among travellers.
Game changer or a costly dream?
(Image: Facebook/Bintulu News Page)Improved connectivity through Air Borneo can significantly enhance cross-border business collaborations, educational exchanges, and knowledge transfer, which are key enablers of innovation and sustainable economic growth.
The Knowledge Spillover Theory (Audretsch & Feldman, 1996) suggests that geographical proximity to hubs of knowledge fosters innovation.
By improving connectivity between Sarawak and neighboring ASEAN economies, Air Borneo can facilitate business expansion, joint ventures, and academic collaborations that bring new expertise and technological advancements into the state.
Additionally, Porter’s Cluster Theory highlights how connectivity can strengthen industry clusters by enabling businesses to share resources, attract investment, and enhance competitiveness.
Air Borneo’s enhanced route network can support Sarawak’s priority sectors—including agribusiness, tourism, manufacturing, digital economy, and creative industries—by making it easier for entrepreneurs to network, access new markets, and scale their ventures.
But will these theories translate into tangible economic gains, or are they just lofty academic concepts?
PCDS 2030: Visionary move or financial burden?
Sarawak’s ambition to become a high-income, digitally driven economy by 2030 is now at its midpoint. Air Borneo aligns with PCDS 2030’s strategic pillars by:
Enhancing economic growth by integrating rural entrepreneurs into the supply chain and offering business visibility through its platform.Boosting tourism & cultural promotion by making Sarawak’s unique heritage a key feature of its in-flight experience and branding.Accelerating digital economy adoption by using Air Borneo as a platform for digital marketing, e-commerce collaborations, and financial inclusion for rural businesses.Facilitating sustainable & inclusive development by ensuring that economic benefits extend beyond urban centers to include rural artisans, farmers, and entrepreneurs.According to Sarawak Premier Tan Sri Abang Johari Tun Openg, the acquisition of MASwings, now rebranded as Air Borneo, is a strategic move to position Sarawak as an aviation hub for Borneo and a gateway to the ASEAN region.
Tan Sri Abang Johari Tun Openg (Image: The Star)The initiative aims to open doors to new economic opportunities and enhance connectivity for both business and tourism sectors.
This aligns with his vision of business-oriented policies and sustainable economic development under PCDS 2030. Air Borneo represents more than just a transportation solution—it is a flying marketplace, a knowledge hub, and a cultural ambassador.
Yet, some critics argue that Air Borneo could become a financial liability, citing the struggles of other state-owned airlines that have failed to remain profitable.
If poorly managed, it could drain government resources that might be better spent on infrastructure, education, or healthcare. The next five years will determine whether Air Borneo becomes a model of success or a cautionary tale of misplaced ambition.
Dr Gabriel Wee Wei En is the Head of Department (Executive and Entrepreneurship) from the Faculty of Business, Design and Arts, Swinburne University of Technology Sarawak.
The views expressed are solely of the author and do not necessarily reflect those of MMKtT. 
- Focus Malaysia.

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