Transport Ministry: Govt keeps RM499 fare cap for Sabah and Sarawak routes, expands FLYsiswa for students

The government will continue its intervention measures to keep flight fares between Peninsular Malaysia and Sabah and Sarawak affordable amid rising operational costs, including maintaining a RM499 fare cap and expanding the FLYsiswa student subsidy initiative. — Picture by Sayuti Zainudin

By Malay Mail

First Published: Friday, 06 Nov 2026 10:15 AM MYT

KUALA LUMPUR, Nov 6 — The government will continue its intervention measures to keep flight fares between Peninsular Malaysia and Sabah and Sarawak affordable amid rising operational costs, including maintaining a RM499 fare cap and expanding the FLYsiswa student subsidy initiative.

In a parliamentary reply yesterday, the Transport Ministry said aviation fuel accounts for 30 to 40 per cent of airline operating costs.

The reply was issued in response to Jerantut Member of Parliament Khairil Nizam Khirudin, who asked about the government’s intervention mechanisms to ensure that flights between Sabah, Sarawak and the Peninsula remain affordable amid the West Asia conflict and disruptions in the Strait of Hormuz.

“When fuel prices spike during a crisis, the government and its agencies have implemented several intervention measures,” the reply stated.

One key measure was the RM50 flight ticket rebate for travel between May 15 and June 14, 2026.

The rebate benefited 100,000 Malaysian passengers, with a total subsidy allocation of RM5 million.

The government also extended the credit period for Route Air Navigation Services charges from 30 to 60 days.

Similarly, airport operator MAHB extended the credit period for non-Passenger Service Charge elements to 60 days to ease airlines’ financial pressure.

The government has also postponed the implementation of new charges for Passenger Boarding Bridges and Check-in Counters for two months, and agreed to exempt aircraft parking charges for Malaysian airlines when appropriate.

To ease the burden on students, the ministry will continue the FLYsiswa initiative, which provides ticket subsidies for domestic routes between the Peninsula, Sabah, Sarawak and Labuan.

The initiative covers students at public universities, polytechnics, community colleges, matriculation colleges and teacher training institutes, and has been expanded this year to include students at Aswara, ILJTM, government-linked universities, state-owned higher education institutions and IMPAC.

For the festive season, the ministry also maintained a maximum one-way fare cap of RM499 (excluding taxes and fees) for travel from the Peninsula to Sabah, Sarawak and Labuan, down from the previous RM599 cap.

The subsidy period has also been extended from three to four days before major festive dates for 2026, covering Chinese New Year, Hari Raya Aidilfitri, Kaamatan, Gawai and Christmas.