KUALA LUMPUR: Golden Destinations Group Bhd is gearing up for regional expansion and margin uplift by leveraging its ACE Market listing to scale its outbound travel business, with Singapore and East Malaysia forming the next phase of growth.
Managing director Mita Lim said the listing serves as a springboard rather than a milestone, as the group looks to replicate its business-to-business (B2B) model beyond Malaysia.
“Listing is not the landing. We actually have a strategy to move on,” he said at a press conference today.
Golden Destinations made its debut on the ACE Market of Bursa Malaysia today, marking a milestone as the first B2B travel company listed on a stock exchange in Asean.
Its share price opened at 49 sen, an 8.89% premium to the initial public offering price of 45 sen, with 15 million shares traded. However, the share closed at 40 sen, 5 sen or 11.11% below the offer price, on 93.55 million shares traded.
On shareholder returns, Lim said the group intends to maintain a consistent dividend policy of at least 40% of its profit.
Moving on, the group is targeting Singapore as its first overseas market, where outbound travel demand is significantly larger and dominated by smaller agencies.
Lim said Golden Destinations is ready to roll out operations, supported by licensing approvals and incoming staff. “We are ready, with our licence secured, and we hope to achieve full operations this year.”
Singapore’s outbound travel market, estimated at four times the size of Malaysia’s, offers a natural extension of the group’s B2B model, which aggregates travel products and distributes them through a wide network of agents.
Domestically, the company is expanding its footprint in Sabah and Sarawak, with plans to localise travel products and enable direct departures from East Malaysian airports.
Lim said this strategy aims to tap into rising affluence and distinct consumer preferences in the region. “We would like to curate and localise our products, allowing travellers to depart directly without transiting in Kuala Lumpur.”
At the same time, Golden Destinations expects shifting travel patterns to support profitability, as demand pivots towards Asia, particularly East Asia and China, which typically command higher margins compared with other regions.
The group noted that Asia already contributes more than 75% of its revenue, positioning it well amid ongoing geopolitical uncertainties affecting long-haul travel.
Despite disruptions to Europe-bound travel due to transit issues in the Middle East, the impact remains limited, with affected customers given options to switch destinations or convert their bookings to credit.
The group estimates that only a small portion of its total travel volume is impacted, with many customers opting to redirect their trips within Asia.
On balance, the shift is expected to be margin accretive.
“We see this as a very positive shift and expect an improvement in our profit margin this year,” the company said.
Golden Destinations’ scale also provides a buffer against cost volatility.
The group has secured more than 100,000 flight seats in advance through fixed agreements with airline partners, insulating it from fuel surcharge fluctuations and allowing it to maintain stable package pricing.
This forward-booking strategy, combined with its B2B distribution network of over 800 travel agents nationwide, underpins the group’s resilience and ability to sustain demand even during periods of uncertainty.
The company is also investing in IT enhancements and building a dedicated meetings, incentives, conferences and exhibitions team to capture corporate travel demand, which it sees as a significant growth segment alongside its core leisure offerings.
Lim said Golden Destinations will continue to prioritise sustainable growth while rewarding shareholders, with a dividend policy of at least 40% of profits.
“With our 35 years’ experience, strong brand and proven B2B model, we believe we can bring the industry to another higher level,” he said, adding that travel demand remains robust as consumers continue to prioritise experiences.
