Malaysia’s Sarawak Is Now The First Malaysian State To Own An Airline; Acquires A Sister Company of Malaysia Airlines

In its most recent attempt to increase ownership of vital assets as it strives for more autonomy, the state of Sarawak in Malaysia will purchase a sister firm of the national airline, Malaysia Airlines. On Wednesday, Sarawak entered into a sales and purchase deal to buy MASwings, a carrier mostly serving the Borneo island’s Malaysian states.

Malaysia’s Sarawak Strives For Autonomy

Malaysia Aviation Group, which is owned entirely by Khazanah Nasional Bhd, the nation’s sovereign fund, is the owner of MASwings. Sarawak would become the first state in Malaysia to own an airline as a result of the agreement.

As it pursues more political and economic independence from the federal government, Sarawak, the largest and most resource-rich state in Malaysia, has been seizing control of important assets. After months of conflict, Abang Johari regained the state’s gas distribution rights from Petroliam Nasional Bhd. in January. Additionally, the state increased its ownership of Affin Bank Bhd last year and took over management of its largest port from the federal government.

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MASwings Becomes AirBorneo

Sarawak has finally acquired MASwings from Malaysia Airlines, a regional airline serving communities in isolated areas in the two vast Borneo states

rural air service is a literal lifeline for many here

fly in a Twin Otter once and you will lose any fear of flying for life 😁 pic.twitter.com/byQZRIbXw5

— Afiq Isa (@pelabursaham) February 12, 2025

Following the Sale and Purchase Agreement (SPA) between the Sarawak government and Malaysia Aviation Group (MAG), State Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg declared the launch of AirBorneo on Wednesday. 

AirBorneo will improve Sarawak’s connectivity both locally and globally, Abang Johari emphasised. He underlined that in order to support skill development and talent growth in Sarawak, AirBorneo will provide a variety of specialised career possibilities, from customer service to highly technical roles. He emphasised how important it is to have control of Sarawak’s aviation industry, both for passenger transportation and as a spur for economic expansion.

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This strategic move will help local communities and businesses by establishing Sarawak as a gateway to Asean and a hub for Borneo aviation, creating new opportunities, and promoting increased connectivity and accessibility to both domestic and international destinations.

Cover Image Credits: Wikimedia Commons