5/09/2025

BIZ & FINANCE FRIDAY | SEP T 5, 2025

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Malaysian Paper

/thesundaily /

CAAM: M’sian aviation sector heading towards full recovery

Govt confident RON95 subsidy rationalisation won’t trigger spike in inflation KUALA LUMPUR: The govern ment is confident that RON95 petrol subsidy rationalisation will not trigger a sharp rise in inflation, Ministry of Economy secretary-general Datuk Nor Azmie Diron said. Inflation is expected to remain manageable within the government’s target range of 2% to 3% even as subsidy rationalisation progresses, he added. “This is the aspiration we are studying, and we are confident. When we implemented the targeted diesel subsidy re cently, we really looked at the impact on inflation. “Was there a very high in crease in inflation? It seems not,” Nor Azmie said at the Malaysian Institute of Economic Research (MIER) Brown Bag Talk titled “RMK13: Policy Empower ment to Sustain Economic Growth” yesterday. Responding to a question from the media, he said inflation should remain con tained over the next six to 12 months despite the govern ment’s ongoing reforms. “If you look at the current situation, subsidies, rationali sation, RMK13 (13th Malaysia Plan) and so on, we will con tinue with the reforms. “At the same time, our approach is targeted. If we look at last year, some of the reforms that were implemented did not lead to a significant rise in inflation. So we can still contain it. The target we set for inflation is around 2–3%, and so far, our performance remains within that range. So we are con fident,” he elaborated. Nor Azmie noted that while diesel subsidy rationalisation has already begun, the next phase, which is RON95, will have a broader impact. He said the move is driven by fiscal realities, with petrol subsidies alone costing the government almost RM40 bil lion a year. “But does that bring benefits to the economy? It seems not. “Our intention is to target it, and then the RM40 billion can be channelled into infrastruc ture development, healthcare, education and so on,” Nor Azmie added. He highlighted that diesel consumption declined following implementation of the targeted subsidy, but industrial activity remained steady. “If we look at gross industrial activity, it has remained main tained. That means there were issues like smuggling and so on, and this is exactly the in tention, efficiency of resources,” he said. Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

the same quarter last year. This represents a 4.4% growth compared to the previous quarter, bringing overall passenger volumes to 99.3% of the pre-pandemic levels recorded in 2019. International passenger move ments reached 12.9 million, repre senting a 6.5% YoY increase. However, there was a slight decline of 2.3% compared to the previous quarter, achieving 98.9% of the levels seen in 2019. Domestic travel showed strong growth, with a 14.7% YoY increase and an 11.8% quarter-on quarter (QoQ) increase to 13.7 million passengers, reaching 99.6% of pre-pandemic levels. Total cargo movements increased by 4.4% YoY to 272.9 million kg, supported by a 3.8% increase in international cargo, which totalled to 202.9 million kg. In contrast, domestic cargo declined by 1.2%, reaching 60.8 million kg. On a QoQ basis, overall cargo volumes decreased by 1.2% compared to 1Q25, with domestic cargo movements falling by 8.3%, while international cargo recorded a slight decrease of 0.7%. TikTok Shop, Mudah.my and Carousell, the conference will feature 14 sessions and 33 panellists from the public and private sectors. It is scheduled to be officiated by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, with a keynote address by Alibaba International Digital Com merce Group president for inter national marketplace James Dong. Other confirmed speakers include ministry deputy secretary-general (domestic trade development) Datuk Roziah Abudin, Shopee Singapore chief commercial officer Zhou Jun Jie, Federation of Malaysian Consumers Associations vice-president Datuk Indrani Thuraisingham, Thailand’s Office of the Consumer Protection Board director Wimonrat Rukkhaworakul Teriyapirom, Alibaba vice-president Eric Pelletier and Shopee Malaysia country director Saovanee Somchit. Malaysia’s e-commerce sector con tinues to grow, with the Department of Statistics Malaysia reporting annual revenue of RM1.23 trillion in 2024. For the first half of this year alone, e commerce revenue hit RM625 billion, RM13.5 billion higher than the same period last year. At the Asean level, the e-Conomy SEA 2024 Report by Google, Temasek and Bain & Company found that the region’s digital economy generated US$11 billion (RM46.4 billion) in profits last year, nearly three times more than in 2022. Asean’s digital economy is projected to reach US$1 trillion by 2030, with e-commerce among the fastest-growing segments. Projections show Asean’s e-com merce gross merchandise value could hit US$230 billion by 2026, driven by a compound annual growth rate of 22%.

CAAM said domestic passenger traf ê c experienced a slight decline of 1.3% MoM, primarily due to national public holidays and school holidays occurring in June as compared to July. Despite this decrease, the number of domestic passengers still reached 4.6 million, representing a 7.4% increase YoY and is at 94.8% of July 2019 levels. Major airports across Malaysia have reported positive YoY growth ê gures for July 2025. In addition to passenger traf ê c, Malaysia’s air cargo movements showed a rebound in July, rising by 11.4% from 83.5 million kg in June 2025. However, YoY cargo move ments experienced a slight decline of 2.8%, totaling 93 million kg, down from 95.7 million kg in July 2024. This decline is attributed to the normali sation of shipment patterns, as tariff driven frontloading in April and May tapered off in June and July. In Q2’25, CAAM said, Malaysia’s air passenger traf ê c showed a continued upward trend, increasing by 10.5% YoY to 26.5 million passengers, up from 24.0 million in

In a statement CAAM said inter national passenger traf ê c in Malaysia continues to outpace domestic de mand, re ë ecting the country’s growing appeal as a global travel destination. In July, international passenger traf ê c increased by 9.6% MoM and 3.4% YoY, reaching 4.7 million passengers, nearly matching pre pandemic ê gures at 98.7% of July 2019 levels. Several factors are contributing to this growth. These include an expansion of seat capacity on both domestic and international routes, the implementation of 30-day visa exemptions for tourists from key markets such as China and India, and the introduction of new international ë ight routes. In terms of passenger distribution by region, ë ights between Malaysia and Asean countries transported 2.2 million passengers. Meanwhile, routes between Malaysia and non Asean countries saw a signi ê cant increase, with a 13.3% rise MoM and a 9.6% increase YoY, bringing the total to 2.5 million passengers.

KUALA is determined to advance regional cooperation in digital trade and this is clearly seen with the country hosting the inaugural Asean E-Commerce Conference 2025 in November, said Domestic Trade and Cost of Living Deputy Minister Datuk Dr Fuziah Salleh. “The participation of all stake holders in this conference is vital to strengthening the regional digital ecosystem and advancing Malaysia’s digital economy agenda,” she said when officiating the soft launch of the conference themed “Asean E Commerce Transformation: Bridging Gaps, Enhancing Competitiveness” to be held on Nov 24 and 25. The conference is organised by the Domestic Trade and Cost of Living Ministry (KPDN) in collaboration with the Malaysia E-Commerce Chapter under the Malaysian International Chamber of Commerce and Industry (MICCI). Fuziah said KPDN will act as a “catalyst for strategic collaboration, consumer protection and sustainable e-commerce development” to ensure the sector benefits not only busi nesses but also society at large. She added Malaysia’s hosting of the first Asean E-Commerce Conference reflects its wider responsibility under the Asean chairmanship to push for innovation while ensuring inclusivity. “This initiative reflects Malaysia’s commitment to advancing Asean’s digital economy agenda while en suring that innovation is inclusive and beneficial for all levels of society,” Fuziah said. Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com month (MoM) increase from June and a 5.3% year-on-year (YoY) rise compared to July 2024. The ê gure now stands at 96.8% of July 2019’s pre-Covid pandemic level of 9.6 million passengers, highlighting a promising recovery trend in both domestic and international air travel. From January to July 2025, the sector reported a total of 61.2 million passengers, moving steadily towards the forecast of 105.8 to 112.9 million passengers for the entire year. LUMPUR: Malaysia PETALING JAYA: Malaysia’s aviation sector is on track for full recovery, with monthly passenger traf ê c reaching 9.3 million in July 2025, the Civil Aviation Authority of Malaysia (CAAM) said yesterday. This represents a 3.9% month-on o July passenger traf ʨ c hits 9.3 million, close to pre-Covid pandemic levels

Malaysia to push regional cooperation in digital trade

Fuziah speaking at the soft launch of the inaugural Asean E-Commerce Conference 2025. Flanking her are Tee (right) and Domestic Trade and Cost of Living Ministry deputy secretary general (consumer empowerment and management) Datuk Amran Ahmad.

sensus on regulatory alignment and ecosystem readiness. “E-commerce has the power to transform eco nomies, empower communities and build resilience across Asean. But it requires consensus on regulation, ecosystem readiness and cross-border cooperation.” Through this conference, Tee said, they aim to strengthen the bridge between industry and regulators, foster meaningful dialogue on the challenges ahead and create an inclusive ecosystem where businesses, from global platforms to rural MSMEs and women entrepreneurs, can thrive. Supported by Shopee, Lazada,

The conference seeks to position e commerce as a driver of Asean’s economic growth while addressing challenges of trust, regulation and inclusivity. Discussions will be structured around two tracks: creating a trusted e commerce marketplace and em powering the digital ecosystem. This includes tackling online con sumer protection, digital piracy and counterfeit goods, while also im proving last-mile logistics, widening access to digital finance tools such as “buy now pay later”, and boosting micro, small and medium enterprises. MICCI president Christina Tee said the conference will help build con