Rm209mil Subsidy Will Continue After Sarawak Takes Over Maswings

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Transport minister Loke Siew Fook said he will ensure rural air services are not disrupted after Sarawak takes over MASwings. (Facebook pic)PETALING JAYA: Transport minister Loke Siew Fook has given an assurance that Putrajaya’s RM209 million subsidy for rural air transportation services will continue even after the Sarawak government acquires MASwings Sdn Bhd.
Loke said it was important for the federal government to show its commitment and sincerity over the subsidy allocated for Sabah and Sarawak.
“As far as the federal government is concerned, we want to work closely with the Sarawak government for the benefit of the people, for both Sarawakians and Sabahans,” he told reporters after signing a memorandum of understanding (MoU) with the state government in Kuching today.
Loke also said a new agreement will be negotiated and signed for 2025 and beyond once Sarawak takes over the airline.
“The most important thing is that (rural air) services won’t be disrupted. It must go on so that passengers will not be affected,” he said.
On July 8, the Sarawak government inked an MoU with Malaysia Aviation Group, the parent company of MASwings, to discuss the airline’s acquisition.
A month before that, Sarawak premier Abang Johari Openg said the state government had agreed in principle to the federal government’s proposal for the state to take over the rural carrier.
MASwings, a Malaysia Airlines Bhd subsidiary, is a regional airline operating rural air services in Sarawak and Sabah. It took over routes operated by FlyAsianXpress and RAS flights in 2007.
In the 2023 budget, RM209 million was set aside to subsidise air transportation for rural areas in Sabah and Sarawak. - FMT

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