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Sibu MP’s aide questions state govt’s MASwings acquisition

Irene Wong

SIBU (March 18): The state government’s recent acquisition of MASwings has been described as ambitious, but it may not directly enhance the well-being of Sarawakians.

Irene Wong, special assistant to Sibu MP Oscar Ling, said the government’s ultimate goal should be to improve the quality of life for the people rather than blindly pursuing expensive mega-projects.

“If the airline investment fails, it is the people of Sarawak who will bear the consequences,” she said in a statement.

She emphasised that Sarawakians have the right to know whether this massive investment truly serves their best interests and whether the government conducted a thorough risk assessment before acquiring MASwings.

The Sarawak government recently completed the acquisition of MASwings, a regional airline previously operated by Malaysia Aviation Group (MAG).

This move is part of Sarawak’s broader strategy to enhance regional air connectivity and promote economic growth. The acquisition was formalised through a sale and purchase agreement signed in February 2025, and the airline rebranded to AirBorneo.

However, Wong argued that Sarawak’s aviation market is limited, with air travel demand far lower than that of Peninsular Malaysia or major international cities.

She said that existing airlines, such as AirAsia and Malaysia Airlines (MAS), have been operating key routes for years, and it remains uncertain whether MASwings can truly fill the market gap.

“If demand is insufficient, the airline could suffer long term losses and eventually rely on government subsidies, becoming a financial burden.”

Wong pointed out that the biggest obstacle to Sarawak’s tourism growth is not the number of flights but the lack of infrastructure.

She noted that many tourist’s destinations lack proper roads, accommodations, and supporting facilities, which discourages visitors.

“Even with increased flights, if the tourisms development does not improve, the number of visitors may not rise significantly, making it difficult for the government to recover its investment,” she explained.

Wong also highlighted that the global airline industry’s reputation as a `high-risk-low return’ sector, with even experienced airlines frequently facing financial difficulties.

She cited MAS as an example, highlighting its years of losses, which ultimately required federal government bailouts.

Many government-backed airlines in Asia, she added, depend heavily on subsidies and struggle to achieve financial independence.

In light of this, she questioned whether it was prudent for Sarawak, with its limited financial resources, to invest heavily in operating an airline.

Wong also expressed concerns about the state government’s ability to manage such a complex industry, which involves operational challenges, market competition, and cost control.

In recent years, she said the Sarawak government has already spent billions on major projects such as the Kuching Autonomous Rapid Transit (ART) system and the hydrogen economy initiative.

Wong noted that these projects have yet to deliver their full potential, and with the added financial strain of an airline, she questioned whether Sarawak’s budget could handle the pressure.

“If MASwings fails to make a profit in the coming years, will the government continue pumping money into this `bottomless pit’?” she asked.

Wong also questioned why the government is not considering subsidising existing airlines to increase flight frequencies and optimise routes, rather than acquiring a costly airline.

Partnering with private airlines and improving airport facilities, she argued, could achieve similar benefits while minimising financial risk.

She also highlighted Sarawak’s pressing infrastructure needs, citing recent severe flooding that exposed poor drainage systems and affected many communities.

Roads, bridges, water supply, and electricity systems, she said, still require massive investment to ensure residents’ well-being.

“With these more urgent needs, the government should prioritise solving these issues instead of taking a risky plunge into the airline industry.”

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