Under Budget 2027, the federal government has allocated RM209 million to subsidise rural flights to remote communities in Sabah and Sarawak, benefitting 820,000 passengers. (Bernama pic)PETALING JAYA: AirBorneo may now be owned by Sarawak, but federal subsidies for rural air services remain crucial to ensure residents continue to have access to affordable air travel, especially in areas with limited alternative transport options.

Economist Firdausi Suffian said the need for subsidies should be assessed based on their importance to residents, rather than solely on who owns the airline.

“Without subsidies, transport costs could be much higher, so these subsidies are necessary to help people maintain access, especially in rural areas,” he told FMT.