By Ts Dr. Hj Ramli Amir, former President of the Chartered Institute of Logistics and Transport (CILT) Malaysia and Vice-President of CILT International for Southeast Asia
KOTA KINABALU: The expansion of air connectivity the BIMP-EAGA Region could transform regional relations and economic growth. This article examines the feasibility of establishing direct air links between Sandakan and Davao, as well as Tawau and Nusantara, assessing both opportunities and challenges for these routes.
Bridging Borneo and Mindanao
The establishment of a Sandakan-Davao route could strengthen ties between Malaysia and the Philippines, enhancing the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) region’s interconnectedness. Davao, the largest city on Mindanao, and Sandakan, the second-largest city in Sabah, are positioned on two key islands with shared cultural and economic interests. This route could streamline travel within the BIMP-EAGA, which aims to stimulate trade, tourism, and economic development among its member areas.
Demographics and Market Demand
Sandakan’s substantial Filipino population, consisting largely of migrant workers and Filipino-Sabahans, represents a natural market for a Davao connection. A direct flight would cater to this demographic’s demand for regular travel for family visits, employment, and small-scale trade, thus creating a steady passenger base. Additionally, the route could serve the growing business interest in linking these regions, especially with Davao’s focus on agriculture and Sandakan’s rich natural resources and eco-tourism potential.
Airline Interest and Market Growth
Philippines AirAsia, a major low-cost carrier, has expressed interest in expanding to Sabah with possible connections from Davao to either Kota Kinabalu or Sandakan. Given the relatively untapped air travel market in this area, particularly in the mid-to-low-cost segment, AirAsia’s involvement would provide a significant boost to the route’s prospects. The entry of a low-cost carrier could attract passengers and facilitate greater mobility between the two regions, increasing travel frequency for both personal and commercial purposes.
Infrastructure and Operational Hurdles
The primary hurdle remains the current domestic status of Sandakan Airport. Converting it to an international airport would require meeting ICAO standards, including customs and immigration facilities, improved runway and apron capabilities, and adequate passenger processing infrastructure. In addition, securing regulatory approvals from both Malaysian and Philippine aviation authorities would be essential for establishing a formal international route. The Sabah Maju Jaya development initiative, which includes the international upgrade of Sandakan Airport, signals a positive step toward overcoming these challenges.
Tourism and Economic Potential
A Sandakan-Davao route could generate significant tourism benefits for both cities. Sandakan is renowned for its eco-tourism attractions, such as the Sepilok Orangutan Rehabilitation Centre and the Kinabatangan River, which could attract nature-oriented Filipino tourists. Similarly, Davao’s diverse attractions, including Mt. Apo and Samal Island’s beaches, could appeal to Malaysian travellers. By tapping into the BIMP-EAGA region’s push for seamless tourism, this route could support local economies and encourage small business growth across both regions.
Gateway to Indonesia’s New Capital
Tawau’s position in eastern Sabah makes it a crucial access point to Indonesia’s future capital, Nusantara, in East Kalimantan. Tawau Airport already hosts international flights, primarily to nearby Indonesian cities, making it well-positioned to add Nusantara to its list of destinations. Establishing this route early would strategically position Tawau as a primary link to Indonesia’s burgeoning administrative and economic hub, increasing its regional importance.
Nusantara’s Development and Demand for Connectivity
With Nusantara set to become Indonesia’s new capital by 2024, development efforts are focusing on creating a state-of-the-art city that would require robust international connections to serve government officials, businesspeople, and tourists. The Nusantara Airport, initially intended for VVIP use, has plans to open to commercial flights. This development, combined with Nusantara’s projected role as an economic catalyst for East Kalimantan, suggests a rising demand for regional air links. A Tawau-Nusantara route would play a vital role in this early connectivity, meeting both diplomatic and economic needs.
Strategic Significance
As Nusantara evolves, it is anticipated to become a focal point for international diplomacy and business, driving up demand for air travel from nearby countries like Malaysia. This direct link could facilitate Malaysian businesses and governmental entities in establishing early relationships with Indonesia’s new administrative centre. Enhanced air connectivity would also support BIMP-EAGA’s goals by creating a streamlined channel for exchange between Malaysia and Indonesia, bolstering collaboration in trade, energy, and culture.
Challenges and Market Considerations
A critical challenge for this route is Nusantara’s phased development, which could impact the timeline and scale of airport operations. The Nusantara Airport’s readiness for regular commercial flights remains tied to the capital’s construction progress. Meanwhile, market demand will need careful evaluation, given Nusantara’s early-stage growth. The initial demand may be limited, requiring a phased approach with smaller aircraft or fewer frequencies until the capital and its infrastructure are fully operational. However, this would lay the foundation for future expansions as Nusantara matures.
Conclusion
Both the Sandakan-Davao and Tawau-Nusantara routes offer promising opportunities to enhance Southeast Asia’s air connectivity. By bridging key cities, these routes align with broader regional goals to promote economic growth, tourism, and cross-border cooperation within the BIMP-EAGA framework. Each route brings its own challenges, such as infrastructure upgrades and regulatory coordination, but their potential economic and social impacts make them highly valuable.
Forging new skies in the BIMP-EAGA region would depend on meticulous planning, strategic partnerships, and cross-border collaborations. As Southeast Asia continues to grow and integrate, these air links could play an instrumental role in fostering economic development, diplomatic relations, and regional cohesion.
