Two-Year Wait: Malaysia reopens its borders, tourism to benefit

All eyes will be on Malaysia tomorrow as the country reopens its borders after shutting it for two years.

Economists and analysts said the opening of borders will be positive for the country injecting a much-needed boost to the country's economy and morale.

Associate Professor Dr Ahmed Razman Abdul Latiff said the reopening of the border will help contribute positively to the Malaysian economy due to the arrival of foreign visitors to the country.

In 2020, the total number of foreign visitors arrivals into the country dropped significantly by 80 percent to 4 million compared to 2019 at over 20 million visitors.

Total spending by tourists also dived to its lowest compared to pre-Covid 19 days.

"The opening of the land border between Malaysia and Singapore, as well as Thailand, is a significant move since 4 out of top 5 visitors came from Asean countries with Singapore topping the list with 10 million visitors in 2019.

"Sectors that will definitely benefit are hospitality and tourism, entertainment, transportation and retail," the business development manager at Universiti Putra Malaysia business school told Sinar Daily.

The Culture, Arts and Tourism Ministry expects Malaysia to receive 8 million tourists by year-end bringing in 2 million visitors.

Johor state government meanwhile has targeted 400,000 arrivals from Singapore.

"However, the government needs to ensure the existing SOP will be strictly adhered to without any exception,” said Ahmed Razman.

Meanwhile, School of Economics, Finance and Banking Universiti Utara Malaysia senior lecturer Dr Sabri Nayan said the tourism sector will benefit the most especially medical tourism.

He added the primary, secondary and tertiary sectors will also benefit because we can re-employ foreign workers.

He added to make sure Malaysia can overcome stagnation, the government must implement robust fiscal and monetary policy.

"Rakyat friendly economic policies will definitely boost domestic consumption and bolster the economy," Sabri told Sinar Daily.

Meanwhile, the International Trade and Industry Ministry said the full opening of the land borders will accelerate economic recovery, benefitting the ecosystem, whether it is business continuity, livelihoods, and the well-being of the people as a whole.

It’s about prioritising your travel needs, for a stress-free journey and maintaining standard SOP, said the ministry.

The reopening of the government's border is a positive step in the country's recovery process.

This is especially for sectors severely affected by the Covid-19 pandemic such as the tourism and trade industries.

Malaysia plays an important role in the global supply chain and the prolonged closure of border gates will inevitably affect the country's position and competitiveness in international trade.

Thus, the reopening of the country's borders is long-awaited and is a timely move.