18th December 2023 - 3 min read

The Ministry of Transport is introducing a new subsidy initiative for the purchase of one-way economy class flight tickets from Peninsula Malaysia to East Malaysia during festive seasons. Specifically, these tickets will be capped at the maximum price of RM599 for Malaysians, with the government to pay the remaining difference between the cap and the actual price.
According to Transport Minister Anthony Loke, this initiative will commence with the upcoming Christmas holidays, for flights travelling between 22 to 24 December 2023. It will then be continued in 2024 for other festivals, such as Chinese New Year, Hari Raya Aidilfitri, Pesta Keamatan, Hari Gawai, and Christmas – also for three days respectively. Participating airlines include AirAsia, Firefly, Malaysia Airlines (MAS), and Batik Air.
“Flight tickets that cost less than RM599 will be sold at the original price set by the airlines. Meanwhile, for economy class flight tickets that exceed RM599, the government will pay the price difference between the original price of the flight ticket and the maximum price [cap],” Loke explained, adding that the price of the subsidised ticket does not include taxes and fees.

So for example, if you were to purchase an economy plane ticket that costs RM1,500 – to fly from Kuala Lumpur to Kota Kinabalu on 23 December – you will only need to pay RM599. The remaining balance of RM901 will be borne by the government. On the other hand, if the ticket costs RM450, no subsidy will be provided by the government.
To note, this initiative is already ongoing for the upcoming Christmas celebration, and you can already check for tickets for the applicable dates (22 to 24 December) on the websites of participating airlines. Meanwhile, the implementation of the same subsidy for other festivals in 2024 will begin on 1 January 2024 (at 12.01 am).
Of course, do take note that there are some terms and conditions to abide by. Change of date or of flight is not allowed, and the ticket is only valid for the date of the flight shown on the ticket. Additionally, change of passenger name in the ticket is not allowed, and tickets that have been purchased are non-refundable.

Loke further explained that his ministry had decided to provide the subsidy because Malaysians often have to pay more than RM1,000 for tickets just to return to their hometowns in East Malaysia, despite flights being the only mode of transportation. He also clarified that this initiative will be funded via the unused allocation leftovers from his ministry’s budget.
“As I have stressed before, this initiative has the Cabinet’s support, even though we do not have a specific allocation from the Budget 2024. However, we are adopting a creative approach, redirecting any savings or surplus allocations from our ministry to support this initiative,” said Loke, adding that the initiative will continue for as long as the current government remains.
(Sources: Malay Mail [1, 2], Free Malaysia Today)
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