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PUTRAJAYA: The government has agreed to subsidise airfares for East Malaysian students in the peninsula and West Malaysians studying in Sabah and Sarawak, transport minister Loke Siew Fook said.

The subsidy will also apply to those in the Federal Territory of Labuan, he said.

Loke said his ministry had discussed the matter with the higher education ministry, the Malaysian Aviation Commission (Mavcom) and several airlines to fine-tune the initiative.

“This initiative is expected to benefit some 56,000 students in local universities and cost RM16.8 million,” he said at a press conference here.