SPEECH BY THE RIGHT HONOURABLE CHIEF MINISTER OF SABAH, DATUK SERI PANGLIMA MUSA HAJI AMAN, AT THE OFFICIAL LAUNCHING OF THE KOTA KINABALU-JAKARTA AND KOTA KINABALU-

BALI ROUTE, GRAND BALLROOM PACIFIC SUTERA

SUTERA HARBOUR RESORT, ON 2 MAY 2008

Today is another memorable day for the people of Sabah as we welcome the first flight from Kota Kinabalu to Bali as well as to celebrate AirAsia’s flight from Kota Kinabalu to Jakarta which commenced services on 30^th March, 2008.

On behalf of the Sabah State Government, I congratulate AirAsia on the airline’s dual international route launch from this city. I believe I share the sentiments of many people in Sabah that the launch of the international route to the two destinations in Indonesia will further boost tourism in both countries. In the last 6 years, we have seen AirAsia grow from a two-plane operation to an award winning airline with 67 aircraft operating 100 routes with over 56 destinations, and is recognised as Asia’s leading low fare airline. With the tagline “Now Everyone Can Fly” AirAsia has revolutionised air travel with low fares and made flying affordable for everyone. Congratulations!

Sabah holds a strong reputation as a land of natural eco-treasures and diverse ethnicity. Our economy has diversified over the decades, with the tourism sector playing a critical role in increasing revenue and providing job opportunities. Tourism is already the third highest contributor to Sabah’s economy after agriculture and manufacturing and we are seeing a positive trend in visitor arrivals, with a compounded annual growth rate of 17.2 per cent over the last five years compared to the national average of 7.2 per cent in the same period.

Under the Sabah Development Corridor (SDC) blueprint launched by the honourable Prime Minister in January, tourism has been identified as one of the key drivers of the services sector and supports a vision to make Sabah as one of the most liveable places in Asia by 2025. To achieve our hopes and aspirations in the tourism sector, we will continue to lay foundations for future growth and this will include promoting the arts and culture scene, for which Sabah is gaining reputation. We will also bank on our premier eco-adventure destinations such as Danum Valley and Maliau Basin without sacrificing conservation concerns and turn our State into a metropolis within a tropical paradise.

The aviation sector plays a critical role in boosting Sabah’s efforts to see better growth in tourism. Sabah is strategically located in a three hour flight radius which can bring in a potential 77.1 million travellers. Within a six-hour flying time radius, there are 139.4 million potential tourists. These figures do not include the 34.5 million international visitor arrivals at four major regional hubs – Kuala Lumpur, Singapore, Hong Kong and Bangkok. On this note, we welcome the Prime Minister’s announcement at the launch of the SDC that the aviation sector will be liberalised in Sabah for it to be developed as a premier destination. The Prime Minister has said that the government will facilitate applications of airlines that are interested in flying to destinations in Sabah and this will surely boost visitor arrivals. It is not easy to attract tourists from far-flung destinations without better air connectivity, as too many transits and flights to reach Sabah could serve as a turn off for potential travellers despite the many products we have on offer.

AirAsia has supported the need for more air linkages to Sabah by improving connectivity between Peninsular Malaysia and international routes to Sabah through the introduction of new routes and added frequencies. AirAsia’s arrival to our state has indeed opened various economic and business opportunities. We have seen some significant changes within the economic and social development context, particularly in Kota Kinabalu, Sandakan and Tawau. Now with 5 international routes from the hub, namely Macau, Clark (Manila), Shenzhen, Jakarta and Bali, I am confident that AirAsia will contribute greatly to the growth of the socio-economic and tourism development of the state.

Before I conclude, on behalf of the people of Sabah, I once again extend our heartiest congratulations to AirAsia for the launch of the international routes to Jakarta and Bali. I am proud to be part of this memorable occasion and wish AirAsia all the success with its upcoming expansion plans.

Thank you.