14 July 2009

Flying high: New Singapore-Malaysia links

KUALA LUMPUR Ã¢â¬' The impact of low-cost carriers in driving new business has been illustrated most emphatically by the rise in the number of tourists visiting Malaysia from Singapore since the open skies agreement went into force on January 1.

New direct flights from Singapore to various parts of Malaysia have stimulated travel between the two countries.

There were about 4.9 million arrivals to Malaysia from the start of the year until the end of May, 1.3 million or 36 per cent more than the arrivals in the same period last year, Malaysia's Tourism Ministry said.

Visitors arriving from Singapore account for almost half of total tourist arrivals.

Ã¢â¬ÅâœSingapore has always been our major market, and that is due to the easy accessibility of Malaysia,Ã¢â¬~ Tourism Malaysia chairman Victor Wee told The Straits Times.

Ã¢â¬ÅâœBut the recent competitive airfares, which are very hard to resist, are definitely one of the factors encouraging Singaporeans to visit Malaysia.Ã¢â¬~

Flights between Singapore and Malaysia were previously monopolised by Singapore Airlines and Malaysia Airlines.

There are currently seven airlines with direct flights to seven cities in Malaysia, including Kuching and Kota Kinabalu in east Malaysia. Other cities served by flights from Singapore are Kuala Lumpur, Penang, Ipoh, Langkawi and Kuala Terengganu.

Budget airline AirAsia said yesterday it would start two new routes, servicing Tawau in Sabah and Miri in Sarawak, from September 6.

Analyst Lee Heng Guie of CIMB, Malaysia's second largest financial services provider, believes there is a more complex range of factors behind the increase in visitor arrivals from Singapore than simply cheaper fares and greater choice.

He told The Straits Times, "It could be the global downturn, so people tend to travel within the region instead of long haul.

Ã¢â¬ÅâœIt could also have been triggered by Thailand's political instability when Bangkok closed its airport last year. Now, with the A(H1N1) flu, people likely prefer to travel to less-affected countries.Ã¢â¬~