KUCHING: The government’s decision to cap one-way economy class flight fares at RM599 from the peninsula to Sabah, Sarawak, and Labuan for the three days leading up to Hari Raya Aidilfitri is more of a public relations gesture than a meaningful policy.
Malaysia University of Science and Technology (MUST) economist Geoffrey Williams was concerned over the affordability of the fixed fare.
“The fixed fare of RM599 may not necessarily be considered cheap for a one-way trip, and the cost-effectiveness of the return trip would depend on the timing of travel,” he told New Sarawak Tribune.
He added that it may offer some relief for travellers during the festive season, but it raises questions about market regulation and the government’s role in setting air travel prices.
Transport Minister Anthony Loke announced recently that the government would set maximum flight ticket prices for all major festivals, including Chinese New Year, Hari Raya, Gawai, Kaamatan, and Christmas, specifically for flights to Borneo.
He clarified that in situations where ticket scarcity drives up demand before a festival, any price increase beyond RM599 would be subsidised by the government for those three days only.
However, for those traveling within the peninsula, where buses and trains offer viable alternatives, no maximum flight price will be implemented.
