Malaysia’s Sarawak now gets its own airline: Here’s what it means for travellers

Malaysia’s largest state just bought an airline—Is Sarawak Malaysia’s next big travel hub?

Malaysia’s Sarawak state will acquire a sister company of national carrier Malaysia Airlines, its latest move to boost ownership of strategic assets as it pushes for greater autonomy.

Sarawak will sign a sales and purchase agreement on Wednesday to acquire MASwings, a carrier that largely serves the Malaysian states on Borneo island, according to the office of Sarawak Premier Abang Johari Tun Openg.

MASWings is owned by Malaysia Aviation Group, which in turn is wholly owned by the country’s sovereign fund Khazanah Nasional Bhd. The deal would make Sarawak the first Malaysian state to own an airline.

Sarawak — Malaysia’s biggest and most resource-rich state — has been gaining control over key assets as it seeks greater political and economic autonomy from the federal government. In January, Abang Johari reclaimed gas distribution rights in the state from Petroliam Nasional Bhd. following a months-long dispute. The state also took over the operation of its biggest port from the national government and raised its stake in Affin Bank Bhd. last year.

Abang Johari seeks to transform MASwings into an international airline, and said he was eyeing six international destinations which will boost the state’s tourism industry. MASwings has a fleet of 14 aircraft, according to its website.