Has Malaysia’s Airline Industry Improved Under Prime Minister Anwar Ibrahim?

MYAVIATION MAGAZINE | SPECIAL ANALYSIS

The Malaysian aviation industry has faced turbulent skies over the last decade, ranging from the tragic events of MH370 and MH17 to the financial struggles of Malaysia Airlines and the disruptive impact of the COVID-19 pandemic. When Prime Minister Anwar Ibrahim took office in late 2022, hopes soared for a revitalization of Malaysia’s aviation sector. But nearly three years into his leadership, has there been significant improvement?

Government’s Push for Stability

One of the government’s first steps was to stabilize Malaysia Airlines under the Malaysia Aviation Group (MAG). With fresh funding and restructuring plans, Malaysia Airlines returned to profitability in 2023 for the first time since 2019. This recovery was bolstered by Anwar’s administration providing policy support, incentives for MRO (Maintenance, Repair & Overhaul) expansion, and promoting sustainable aviation fuel (SAF) adoption.

“The Anwar administration has been proactive in positioning Malaysia as a regional aviation hub,” notes Dato’ Seri Azman Noor, aviation analyst at AeroThink Consulting.

Focus on Airport Upgrades

Under the government’s Aviation Industry Master Plan 2030, Kuala Lumpur International Airport (KLIA) and Subang Airport are undergoing upgrades to enhance passenger experience and logistics. The controversial Subang Airport Regeneration Plan has been greenlit, with the promise of attracting high-value private aviation, MRO businesses, and regional connectivity.

Support for Low-Cost and Regional Airlines

Anwar’s policies have also supported AirAsia and Malindo Air (Batik Air Malaysia) through infrastructure incentives, easing recovery after pandemic-era losses. AirAsia X, once on the brink of collapse, returned to long-haul operations with renewed optimism due to increased regional traffic and bilateral agreements facilitated by the government.

Challenges That Remain

While improvements are visible, the industry still faces challenges:

Rising operating costs due to global fuel price volatility.
Pilot shortages, especially in the post-pandemic recovery phase.
A need for stronger aviation safety oversight, especially after regional incidents.

Environmental concerns are also pressing. Malaysia has yet to fully implement SAF infrastructure or robust carbon offset programs compared to Singapore and Thailand.

Verdict: Progress, but More Turbulence Ahead

Under Anwar Ibrahim’s leadership, the Malaysian aviation industry has undeniably made strides in financial recovery, infrastructure upgrades, and regional competitiveness. However, sustaining these gains will require continued investment, global partnerships, and a stronger safety and sustainability focus.

Malaysia is flying higher, but it’s not yet cruising at full altitude.