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Malaysia to refocus tourism on stable ASEAN and East Asian markets

Malaysia will prioritise stable tourism markets like ASEAN, Australia, India, and East Asia to ensure sector resilience amid global air travel disruptions.

KUALA LUMPUR: The government is looking to strengthen the tourism sector by refocusing on more stable markets, including ASEAN, Australia, India and East Asia covering China, Japan and South Korea, to sustain visitor arrivals and national revenue following the global supply crisis that has affected air travel from West Asia.

Economy Minister Akmal Nasrullah Mohd Nasir said the move was agreed upon by the National Economic Action Council to ensure the sector’s resilience amid an uncertain global environment.

“In a prolonged global crisis, tourism is not merely about increasing visitor numbers, but is crucial in generating foreign exchange earnings and helping to offset external pressures we are currently facing,” he said during a global supply crisis briefing broadcast live on local television stations today.

He said within a month of the crisis, a total of 288 flights from West Asia to Malaysia were cancelled, involving 88,438 seats, although the segment contributed less than one per cent of total tourist arrivals to the country.

According to Tourism Malaysia, arrivals from China reached 4.7 million in 2025, a year-on-year increase of 25.1 per cent, while as of February 2026, there were about 871 weekly flights across 30 cities in the country with a capacity of 170,862 seats.

Akmal Nasrullah said strategies to boost visitor numbers must emphasise Malaysia’s strengths as a stable and accessible destination, with a well-developed transport system and sufficient domestic energy supply to support tourism experiences.

“More importantly, the benefits of tourism do not stop at hotels and airlines. When tourists arrive and spend, the impact is also felt by homestay operators, tour guides, local transport providers, restaurants, hawkers, retailers, handicraft entrepreneurs and various other small businesses.

“This economic spillover is vital to ensure small industries continue to thrive and local economies remain active. That is why strengthening the tourism sector at this time is not merely about promotion, but about ensuring more local businesses can survive and more people continue to have a source of income,” he said.

He added that the Visit Malaysia 2026 campaign had been extended to 2027 to allow the international tourism market more time to recover, with a target of 47 million foreign visitors and RM329 billion in tourism revenue.

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