SANDAKAN: The Sandakan Tourism Association (STAN) has called on the Federal Government to establish an Air Connectivity Fund (ACF) under Budget 2027 to strengthen air links, boost tourism and support economic growth, particularly in Sabah.
STAN president Teo Chee Kim said the proposed fund could provide targeted incentives to airlines, including joint marketing support and operating-cost subsidies, to reduce the financial risks of launching new routes.
Speaking during an interview with SandakanFM on the Federal Budget 2027 on Thursday, Teo said limited air connectivity remained a major obstacle to tourism and business growth in Sandakan.
He said passenger traffic at Sandakan Airport grew by 14.2 per cent in the first quarter of the year, from January to March. However, rising jet fuel prices following the escalation of the Middle East conflict had put pressure on airlines, prompting flight reductions.
By August, passenger traffic at the airport had declined by 8.4 per cent year-on-year. Teo said Sabah as a whole had also been affected by flight cuts.
He said high fuel prices had made airlines more cautious about introducing new international routes, making government support increasingly important.
“An Air Connectivity Fund could help reduce the financial risks through joint marketing programmes and operating-cost incentives, making new routes more viable,” he said.
Teo said STAN had long advocated a direct Singapore–Sandakan flight, citing Singapore Changi Airport’s role as a major regional aviation hub.
A direct service would open up regional markets and provide a convenient transit gateway for visitors from Europe, Australia and the United States, he said.
He also cited Penang, Da Nang and Phu Quoc in Vietnam, as well as destinations in Japan, as examples of the importance of maintaining strong air connectivity amid global aviation challenges.
Teo stressed that improving air connectivity should be viewed as a strategic investment in tourism and economic development.
“Strengthening air connectivity is essential if we want to take Sandakan’s tourism industry to the next level. The proposed fund could help unlock Sandakan’s tourism potential and strengthen Sabah’s position as a competitive international tourism destination,” he said. – James Leong
Teo said limited air connectivity remained a major obstacle to tourism and business growth in Sandakan.
