Realising Sarawak’s Aerotropolis
KUCHING (Feb 8): Sarawak chases after a grand project, the Sarawak Aerotropolis, slated to becoming the key to unlock future growth.
A cornerstone of the Post-Covid-19 Development Strategy (PCDS) 2030, the Aerotropolis — an amalgamation of aero- and metropolis — is designed to transform Sarawak into a high-tech regional aviation and aerospace hub.
Unlike a traditional airport, it is envisioned as an ‘integrated aviation-centreed economic ecosystem’ whereby the airport acts as the anchor for industrial, commercial, and educational sectors.
Central to the Aerotropolis is a proposed new international airport, currently undergoing a feasibility study before the end of 2027.
The chosen site is Tanjung Embang (near the border of Asajaya), situated approximately 30 kilometres from the current Kuching city centre. This is slated to be integrated with a new deep-sea port and a green hydrogen hub.
This upcoming aerotropolis is designed to handle 15 million passengers annually (tripling the current airport’s capacity) and serve as a major commercial cargo hub.
Sarawak Premier, Datuk Patinggi Tan Sri Abang Johari Tun Openg, had previously indicated that the facility will be modeled after Doha’s Hamad International Airport, featuring seamless digital check-in to boarding journeys and green architectural principles.
The Aerotropolis is planned to cover a dedicated zone (approximately 100 to several hundred acres) focused on high-value industries such as maintenance, repair, and overhaul (MRO) services; manufacturing of aerospace components (including AI-based smart chips and composite materials); sustainable aviation fuel (SAF); and space technology.
“Today, aerospace and new space are no longer niche or specialised sectors. They have emerged as strategic national industries; industries that will shape the direction of nations and regions for decades to come,” the Premier said in his remarks during the Asia Pacific Aerospace Conference and Exhibition (APACE) 2026 last week.
“Aviation is the visible front of the aerospace economy. With AirBorneo now in operation, Sarawak strengthens regional connectivity across Borneo and Asean.
“The development of the Tanjung Embang Airport, together with existing airports, enables an integrated aerospace ecosystem, covering smart digital airports, flight operations, advanced manufacturing, and Maintenance, Repair and Overhaul (MRO) capability.
“Our objective is clear; we want to prepare Sarawakians not only to work in aerospace but to own capability and expertise. Airlines and airports are not endpoints. They are platforms for aerospace industry growth.”
Towards Sarawak’s aerospace and new space sectors
Aviation’s elevation will also give rise — pun intended — to the development of Sarawak’s aerospace and new space industries.
MRO is one of the most credible entry points into the aerospace value chain as it creates high-skilled jobs, enforces safety culture, anchors technical expertise and attracts supporting industries.
Abang Johari said that Sarawak positions MRO alongside avionics, advanced materials, digital maintenance systems, and data- driven safety and asset management.
This creates a realistic and investable aerospace industry base.
“Sarawak’s approach to space is practical and mission driven with focus on satellite technology, data utilisation and downstream applications that support forest and assets management, agriculture, disaster preparedness, and maritime monitoring, while delivering tangible benefits for our people,” the Premier noted.
“To execute this effectively, we are strategically evaluating the full spectrum of space technologies, including the practical deployment of small satellites system, notably the CubeSats platform that is becoming a trending category of spacecraft.”
CubeSats have the advantage of being less expensive. Scientists say the cost of a traditional satellite ranges from 100 to 300 million euros compared to a CubeSats which cost less than 500,000 euros.
In addition, a conventional satellite requires between 5 and 15 years to develop and deploy while CubeSats might need less than a year to build and out in low orbit.
“In the past, only rich nations and corporations could afford satellites, with projects taking ten years or more to materialise,” he added.
“CubeSats provides the disruptive change where bigger systems demand massive investment compared to nanosats that can be built in months and launched at a much lower cost thus reducing the financial risk.”
Low Earth orbit satellite operates 160 to 2000km (100-1200 miles) above Earth, offering low-latency, high-bandwidth communication, Earth observation and navigation.
These satellites orbit rapidly (about 7.8km per second) completing a circle in 90 to 120 minutes, often deployed in large interconnected constellation to ensure continuous global coverage.
“In so doing, we are building our capability to secure our own future and contribute meaningfully to a collaborative and competitive aerospace future for all of Asean.
“By building our capability in this high- growth industry, we position Sarawak not merely as a participant, but as a capable partner in shaping the orbital infrastructure of tomorrow.”
From rural to regional: AirBorneo takes flight in 2026
The landscape of Sarawakian aviation has shifted dramatically as AirBorneo officially completed its transition from a rural feeder service into Sarawak s ambitious state-owned carrier.
Since assuming full control from MASwings on December 31, 2025, the airline has moved at a ‘supersonic’ pace to modernise its fleet and digital infrastructure.
The transition reached a critical milestone on January 1, 2026, when AirBorneo took full legal and operational responsibility for the region’s Rural Air Services (RAS).
While passengers may still see the familiar MASwings livery on some of the 14 inherited aircraft, the airline’s new identity was cemented on January 2, when the first flights under the AirBorneo banner departed Kuching for Mukah and Tanjung Manis.
Additionally, AirBorneo made its first major international appearance this week at the 2026 Singapore Airshow.
Earlier this week, the airline announced a strategic partnership with ATR to modernise Malaysia s Rural Air Services (RAS) fleet, with AirBorneo confirming a firm order for eight ATR aircraft, comprising five ATR 72-600s and three ATR 42-600s, with purchase rights for four additional aircraft.
The agreement marks a significant milestone in AirBorneo s transformation into Sarawak s state-owned airline and its assumption of responsibility for the RAS network a vital public service that connects remote and underserved communities across Sarawak, Sabah and Labuan.
Finalised in late 2025, the order supports AirBorneo s long-term fleet renewal strategy following the acquisition of MASwings by the Sarawak state government in 2025 and its subsequent rebranding as AirBorneo. Deliveries are scheduled between 2027 and 2029.
“This partnership with ATR marks a major milestone in AirBorneo’s commitment to delivering reliable, safe and modern air services for the communities we serve,” said Megat Ardian, chief executive officer of AirBorneo in a statement.
“Our new ATR 600 fleet will significantly strengthen the Rural Air Services network by offering improved comfort, greater efficiency and the operational capability needed for regional connectivity in East Malaysia.
“The ATR platform has consistently proven to be the most suitable planes for our operating environment and upgrading to the latest 600 series ensures we can continue providing essential connectivity while preparing AirBorneo for long-term growth.”
AirBorneo currently operates eight ATR 72-500 aircraft inherited from MASwings. The new-generation ATR 600 series will form the backbone of a safer, more efficient and more resilient RAS operation for East Malaysia.
The group in the statement said the introduction of the ATR 42-600 and ATR 72-600 aircraft will enable AirBorneo to enhance passenger experience, operational reliability and service capability.
Beyond physical planes, AirBorneo has prioritised a “digital-first” strategy as in mid-January, it finalised a multi-year partnership with Sabre Corporation.
By adopting Sabre’s advanced technology even before it took to the skies, AirBorneo which is owned by the government of Sarawak, aims to establish strong foundations to support both regional connectivity and long-term growth, while ensuring it can adapt quickly to market changes and deliver a seamless passenger experience.
“AirBorneo is committed to building a modern, competitive airline that enhances connectivity in Sarawak and the wider region,” said Megat.
“By partnering with Sabre even before our first flight took off, we are ensuring that our pricing, planning, and revenue management capabilities are built on a robust, data-driven foundation.
“This will enable us to serve our first and future passengers effectively, make smarter business decisions, and set the stage for sustainable growth.”
While the airline currently relies on turboprops, its ‘Jet Age’ is soon approaching. The Sarawak government has confirmed that AirBorneo is currently exploring leasing options for three narrow-body jets to begin operations by July 2026.
These jets will serve as the backbone for the airline’s expansion into Peninsular Malaysia and Singapore.\
Boeing bets big on future in Sarawak
Global industry players see Sarawak as the next growth node. Take Boeing, for example: The aviator’s presence during APACE 2026 in Kuching spoke volumes of its interest in the state.
Boeing president for Southeast Asia, Penny Burtt, believes Sarawak has a central role to play in the aviation value chain.
“You (Sarawak) have an incredibly important role to play in the future of Malaysia’s aviation sector,” she said during her sharing session at APACE 2026.
“Sarawak has a clear ambition to become a competitive aerospace hub, and that ambition is perfectly timed with this growth story. With its strategic location and talent pipeline, Sarawak will play a central role in the aviation value chain.”
To support this journey, Boeing is working with the Sarawak Economic Development Corporation and Aquatic to deploy a seawater-based carbon removal demonstration facility a first for Malaysia.
This will advance carbon removal technology and produce green hydrogen. Burtt noted that Boeing is also collaborating with i-CATS University College to shape courses in supply chain management, MRO, and sustainable aviation.
“Moving forward, we must pursue four priorities: delivering the right fleet capacity, developing safe and efficient air traffic management, expanding high-quality skills training, and advancing sustainable aviation.
“Boeing is committed to partnering with you to unlock this potential and offer world-class support and technology. Thank you very much for having us here, and congratulations on this fantastic initiative.”
During her session, Burtt noted that total fleet size in Southeast Asia is expected to triple during the next two decades, with Boeing anticipating a quadrupling of flights across the region, whereby majority of new deliveries designated for growth rather than just replacement.
Burtt noted that Southeast Asia will have the highest projected fleet growth in the world, tracking at about seven per cent, well above the global average. This will make it the fourth-largest commercial aviation market globally.
“A key driver has been the emergence of low-cost carriers; 20 years ago, they operated 25 per cent of flights, but today that has grown to 70 per cent,” she explained. “This has spurred a significant increase in single-aisle fleet adoption.
“Malaysia is one of the fastest-growing aerospace and aviation markets in the world. Passenger traffic here is projected to increase nearly seven per cent over the next 10 years.”
Talent pool for the future: Sarawak steps up workforce drive
In recognising the human-capital intensive nature of aviation, aerospace and new space industries, Sarawak has plenty to do.
As the state positions itself as a regional hub for aviation, aerospace, and space, the demand for a specialised workforce has become the critical ‘fuel’ for this ambition.
The need to grow a local talent pool shifts into necessity as the industry requires expertise in avionics, aircraft maintenance (MRO), satellite engineering, and advanced manufacturing.
Without a robust pipeline of local students and graduates, the state risks relying on imported expertise, which limits the long-term economic trickle-down to its citizens.
That is why Sarawak has placed education and talent development at the centre of its aerospace strategy, said the Sarawak Premier.
“Aerospace and new space require more than infrastructure. They require a science and engineering culture. To that end, Sarawak is building the Sarawak Science Centre and developing Borneo Astronomy Centre in Santubong.
“These institutions inspire curiousity, strengthen STEM literacy and encourage young Sarawakians to pursue careers in Science, Engineering and Technology, including aerospace engineering. I believe the facilities would ensure aerospace and new space visible and achievable for young Sarawakians.
“Aerospace and new space development must be responsible. Sarawak is investing in climate and environmental research, conservation and carbon management, low-carbon technology and mobility, renewable and green energy, including hydrogen.
“We have established the Faculty of Aerospace Engineering at i-CATS University College and implemented the Free Tertiary Education Scheme (FTES) to widen access to high-value disciplines.
“We also embark on three new programmes in Aircraft Maintenance Repair and Overhaul (MRO) specialising in airframe and avionics.
“These programmes are designed to meet real industry demand covering aircraft operations and safety, maintenance, repair and certification, and advanced avionics and digital aircraft systems,” he highlighted in his APACE speech.
To note, the Sarawak Talent Development Policy and Blueprint represent a strategic and long-term commitment to building a technically skilled, agile, innovative, and future-ready workforce to support Sarawak s economic transformation.
While nurturing talent remains essential, Sarawak recognises the importance to strengthen talent retention by creating clear career pathways, strong industry linkages, and a conducive ecosystem where our people can grow and thrive in Sarawak.
Initiatives such as APACE play a critical role in translating policy into action by aligning education and training with industry needs, enhancing employability, and ensuring that our talent development efforts deliver real impact for sustainable growth and long-term prosperity.
Sarawak’s aerospace talent pipeline is envisioned as a seamless, continuous journey. Beginning with technical and vocational education and training (TVET), elevate it through advanced engineering and systems capability, deepens it with research and innovation, and ultimately empowers it through commercialisation.
“Through this journey, ideas are transformed into industries, talent into capability, and Sarawakian expertise into a force that helps shape the future of aerospace for the region and beyond. This approach ensures aerospace education creates economic value, not merely academic output.
“Aerospace is inherently global. Sarawak collaborates with leading institutions including Tsinghua University, Istanbul Technical University, Middle East Technical University, and global industry partners.
“These collaborations ensure alignment with global standards, joint research, curriculum development, and mobility of students and professionals.
“At the same time, Sarawak actively engages Asean partners such as Brunei, Thailand and Singapore to build regional interoperability and shared competitiveness. Asean s strength lies not in acting alone, but in working together.”
MOUs connect stakeholders towards industry elevation
A total of seven memorandum of understanding (MOU) exchanges were made on January 27, 2026 during APACE 2026
1. MEITD and PERKESO
This MOU establishes a strategic partnership between the Ministry of Education, Innovation and Talent Development Sarawak (MEITD) & Social Security Organisation (Perkeso) to bolster Sarawak’s talent ecosystem.
Executed in January 2026, the collaboration focuses on strengthening graduate employability and expanding access to social protection through the MYFutureJobs portal.
Key initiatives include implementing MYFutureJobs registration for students at state-owned higher education institutions and those sponsored by Yayasan Sarawak.
The parties will also coordinate reskilling and upskilling programmes, collaborate on green workforce development, and integrate talent data to create a unified labour market database for the State.
This partnership aims to build a robust, data-driven workforce prepared for the digital economy while ensuring students and graduates are well-versed in social security protections.
2. i-CATS University College, UKPS and Turkish Aerospace Malaysia
This collaboration brings together Sarawak Security and Enforcement Unit (UKPS), Turkish Aerospace Malaysia (TUSAS), and i-CATS University College (i-CATS) to support research and development in next-generation aerospace technologies.
The partnership focuses on next-generation technology in unmanned systems; aerospace systems engineering and avionics; and talent development, applied research, and technology localisation.
This initiative aligns with Sarawak s ambition to strengthen the aerospace industry value chain, build local capability, and develop a resilient aerospace ecosystem that supports industry and innovation.
3. i-CATS University College and H2 Energy
The proposed collaboration between H2 Energy Sdn Bhd (H2 Energy) and i-CATS University College, Sarawak advances this agenda into clean aviation, logistics, and disaster resilience, positioning Sarawak as a regional leader in hydrogen-enabled aerospace solutions.
Hydrogen-powered drones address critical gaps in rural access, emergency response, and logistics, especially in Sarawak s interior and disaster-prone areas.
The collaboration focuses on customising and deploying hydrogen-powered drones to meet Sarawak s unique geographic and operational needs, including: Rural interior logistics (longhouse communities, remote clinics), Disaster response (floods, landslides, disrupted road access) and Delivery of critical items (Medicines and vaccines, Emergency medical supplies, Communications equipment, Food and essential goods).
4. Sarawak Skills and Prima Tech Solution
The MOU between PTSSB and Sarawak Skills seeks to establish collaboration in delivering upskilling programmes and customised aviation courses by integrating technical expertise with training facilities and support.
It also aims to explore joint knowledge-sharing initiatives and talent development efforts, including industry exposure, internship opportunities, and employment pathways.
5. Sarawak Skills and Borneo Aerospac
Sarawak Skills and Borneo Aerospace Sdn Bhd (Borneo Aerospace) will collaborate to promote and deliver training in Advanced and Urban Air Mobility and autonomous aerial technologies, with EHANG providing technical expertise, equipment, and diagnostic tools.
This collaboration will support the future establishment of a Training Facility / Learning Hub in Sarawak, focused on low-altitude aviation and UAV operations.
6. SAINS and EarthEye Space Technologies
This Memorandum of Understanding marks a strategic collaboration between Sarawak Information Systems Sdn. Bhd. (SAINS) and EarthEye Space Technologies Pte Ltd (EarthEye Space Technologies) to strengthen Sarawak s capabilities in space-based remote sensing and Earth observation intelligence.
Through this collaboration, SAINS will advance its role in delivering high-value remote sensing solutions, with particular focus on Synthetic Aperture Radar (SAR) and optical satellite imagery processing, analytics, and data extraction.
These capabilities will support evidence-based decision-making across infrastructure development, environmental monitoring, disaster risk management, urban planning, and resource governance.
EarthEye Space Technologies will provide a secure and scalable satellite imagery processing platform, enabling SAINS and its customers to perform direct, on-demand analysis of SAR and optical data.
This partnership reflects SAINS commitment to digital sovereignty, local capacity building, and Sarawak s Smart State aspirations.
7. CENTEXS, Tsinghua University and Asia Pacific Professional Development Sdn Bhd
The proposed MOU establishes a collaboration between CENTEXS, Tsinghua University, and Asia Pacific Professional Development Sdn Bhd, encompassing training programmes, research, and testbed initiatives across four key focus areas, namely artificial intelligence, robotics, green mining and quarrying, and launch vehicle/aerospace (design, assembly, and launch).
The collaboration includes the engagement of technical expertise to accelerate the translation of training and research outcomes, the joint delivery of CENTEXS training programmes as a form of technology transfer, and the provision of structured study pathways for CENTEXS graduates to progress into Tsinghua University award programmes.
Tsinghua University, as a leading comprehensive research university in China, is globally recognised for its strong international standing, significant research output, and expanding global collaborations, with its academic qualifications being highly regarded worldwide.
Accordingly, the MOU will enable Tsinghua University to provide academic and technical support for the programmes, research, and testbed initiatives, as well as certification for the related programmes.