Malaysia’s Transport Ministry confirmed on 6 November 2026 that the government will maintain the RM499 fare cap on flights between Peninsular Malaysia and both Sabah and Sarawak. The cap, reduced from RM599 earlier this year, sets the ceiling price that airlines can charge on these long domestic routes and applies to economy class seats sold by carriers including Malaysia Airlines, AirAsia and Batik Air.
The ministry cited ongoing cost pressures - including the impact of West Asia tensions on fuel supply routes through the Strait of Hormuz - as the reason for keeping the ceiling in place rather than lifting it. Without the cap, routes spanning over 1,500 km from Kuala Lumpur to Kota Kinabalu or Kuching would otherwise be priced at market rate, which airlines have argued would push fares considerably higher.
What this means for travellers
For anyone planning a trip to East Malaysia, the cap keeps the baseline price for a one-way flight from Kuala Lumpur at RM499 or below. In practice, airlines still sell seats above that price on some fare classes, but the regulated floor applies to the cheapest available tickets in each booking window. Travellers who book well in advance typically find fares in the RM200-350 range on budget carriers; the cap becomes most relevant during peak periods such as the school holidays in November and December, when demand on Peninsular-to-Borneo routes spikes sharply.
The ministry also confirmed an expansion of the FLYsiswa programme, which subsidises student fares on these same routes. Students travelling between university campuses or returning home will see broader eligibility criteria from early 2027, though full details have not yet been published.
Planning your Borneo trip
East Malaysia covers two distinct destinations with different characters. Sabah, home to Kota Kinabalu and the Kinabalu National Park, draws trekkers, divers and wildlife watchers. Sarawak, with Kuching as its relaxed capital, offers river longhouse culture, Bako National Park and some of Malaysia’s best street food. Our guide to getting around Malaysia covers all the domestic transport options, and the best time to visit Borneo page helps with timing, since the two states have different monsoon patterns. Flights from Kuala Lumpur to Kota Kinabalu take around two hours and 15 minutes; Kuching is just over an hour.
The fare cap is reviewed periodically, but no end date for the current level has been announced. Travellers should book through the airline’s website directly to access capped fares, as some third-party booking platforms show higher prices.