04/04/2026

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SATURDAY | APR 4, 2026

MAG ramps up expansion push

o Group announces new China, Japan routes amid strong travel demand

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

operators such as Tabung Haji Travel and Ikhlas Travel. The Uzbekistan government had on Jan 9 adopted a special decision to enhance cooperation with Malaysia and Indonesia on Umrah+ packages, with Samarkand positioned as a key destination, he added. Highlighting Samarkand as the “pearl of the Silk Road”, Gadoev said, the city has long served as a central hub connecting trade routes from east to west and is now being developed as a major tourism and investment destination. Among key attractions is the newly renovated Imam al-Bukhari complex, opened to the public on March 19, which is expected to draw more international visitors, including from Malaysia. Gadoev said Uzbekistan is positioning itself as an attractive destination for Malaysian investors, supported by ongoing economic reforms and pro-business policies. Since 2017, the country has implemented large-scale reforms to continuing. Our partnership with Japan Airlines also gives us confidence to drive traffic across both markets,” he said, adding that the Fukuoka service is expected to commence between July and September this year. The China expansion will further strengthen MAG’s footprint in one of its fastest-growing markets, supported by visa facilitation measures and rising outbound travel demand. Chief commercial officer Dersenish Aresandiran said the group is targeting stronger connectivity and feeder traffic flows, positioning Kuala Lumpur as a key regional gateway. “These expansions are strategic moves that strengthen our network and reinforce Malaysia’s position as a gateway to Asia,” he said. Beyond new routes, MAG is also increasing flight frequencies across several markets, including Brisbane, Manila and Colombo, to capture growing leisure and business travel demand ahead of Visit Malaysia Year 2026. Operationally, the group has shown marked improvement following disruptions in 2024 caused by supply chain and maintenance challenges. Foong noted that on-time performance (OTP) has recovered to an average of 88% in the first quarter of 2026, compared with 84% last year, while performance during the recent festive travel peak reached close to 92%. “These improvements reflect the progress we’ve made in stabilising

KUALA LUMPUR: Malaysia Aviation Group (MAG) is accelerating its next phase of growth with a network expansion into North Asia, underpinned by improving operational performance and sustained travel demand, even as external uncertainties persist. The aviation group announced new routes to Shenzhen and Changsha in China, as well as Fukuoka in Japan, as part of its broader strategy to scale up operations under its Long-Term Business Plan 3.0 (LTPP 3.0), which runs until 2030. President and group CEO Nasaruddin A. Bakar said the group has moved beyond its post-pandemic stabilisation phase and is now entering a period of “disciplined expansion”, supported by stronger financials and operational recovery. “Resilience comes from clarity of strategy, financial discipline and the ability to adapt quickly while staying focused on long-term growth.” The expansion comes on the back of robust demand across key markets, particularly North Asia, with load factors averaging about 85% for China routes and close to 90% for Japan in the first quarter of 2026. MAG airline business CEO Bryan Foong said the decision to launch the new routes was backed by extensive market analysis and confidence in sustained demand. “For Japan, demand is at an all-time high and we see that strength KUALA LUMPUR: Uzbekistan is in talks with AirAsia and other airlines to open new direct routes between Malaysia and Uzbekistan to strengthen connectivity and boost tourism, said Ambassador Extraordinary and Plenipotentiary of Uzbekistan to Malaysia Karomidin Gadoev. Gadoev said air connectivity has improved from two to eight weekly flights between Kuala Lumpur and Tashkent, now served by AirAsia X, Batik Air Malaysia and Uzbek Airways. “And now we are talking to AirAsia and other air companies to expand connectivity, including direct routes to Samarkand,” he said at the Uzbekistan-Malaysia Business and Tourism Cooperation Forum yesterday. The ambassador said the expansion of air links is expected to support tourism growth through Umrah+ travel packages in collaboration with Malaysian Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

(From left) Foong, Nasaruddin and Dersenish at the press conference.

linkages and partnerships, and support Malaysian tourism operators in developing travel offerings to Samarkand,” he said. Malaysia External Trade Development Corporation (Matrade) deputy CEO (export acceleration) S. Jai Shankar urged businesses to deepen engagement to scale bilateral trade from the current US$100 million to the billions. He said bilateral trade expanded by 26.4% to about US$100 million in 2025, from US$80 million in 2024, while Malaysian exports rose 27% to US$109 million. “Uzbekistan is positioning itself as a gateway to Central Asia, offering access to more than 120 million consumers and over 300 million across the CIS, supported by evolving trade routes as land and rail connectivity regain importance.” Jai Shankar said Malaysia sees Uzbekistan as one of its key partners in accessing the Central Asian market, as shifting global conditions prompt countries to rethink trade relationships. strengthen Kuala Lumpur’s role as a transit hub amid capacity adjustments by other airlines. Foong said MAG is increasing connectivity on key long-haul routes, including additional flights to Europe, while ensuring that expansion remains commercially viable. “We see opportunities to grow Kuala Lumpur as a hub, but we will balance that with profitability considerations, especially in a high fuel cost environment,” he said. Looking ahead, MAG’s strategy centres on scaling growth without compromising financial discipline, as it targets a place among the world’s top 10 airlines by 2030.

table present, allowing businesses to source raw materials domestically.” Currently, 47 Malaysian companies are operating in Uzbekistan, up from about 30 two years ago, with more than 17 established in the past two years and the number continuing to grow. He said Uzbekistan’s strategic location and developed transport infrastructure provide access to more than 120 million consumers in Central Asia, including Afghanistan, and over 300 million across the CIS region. He added that more than 20 hotel and tourism-related projects in the Samarkand region are seeking Malaysian investors, as the city positions itself as a key historical and tourism hub along the Silk Road. The projects include hospitality developments and supporting infrastructure to accommodate rising visitor arrivals and expand tourism capacity. “The Uzbekistan embassy in Kuala Lumpur is ready to facilitate business engagements, including investor remains cautious about external risks, particularly geopolitical tensions and fuel price volatility stemming from ongoing conflicts in the Middle East. Nasaruddin said the group is adopting a disciplined approach to cost management and capacity planning, while maintaining flexibility through dynamic pricing strategies. “Demand remains strong across most of our destinations, but the market is fluid. “Pricing and capacity will continue to be adjusted based on supply and demand conditions.” The group also sees potential upside from shifting global travel patterns, with opportunities to

improve the investment climate, including a single-window system that allows businesses to obtain approvals, open bank accounts and resolve agency matters within two to three working days, and commence operations within about one week. Uzbekistan’s GDP reached US$147 billion (RM593 billion) in 2025, growing 7.7% from about US$60 billion before 2017, supported by stronger foreign investment inflows, which rose from about US$3.3 billion to US$43 billion last year. He said Uzbekistan offers favourable tax conditions, including exemptions on income, property, water usage and land taxes for three to 10 years or more in special economic zones, depending on investment size starting from US$300,000 and extending beyond 10 years for investments exceeding US$15 million. “Uzbekistan is also rich in natural resources, with mineral reserves valued at over US$3 trillion and all elements of the Mendeleev chemical The group plans to grow its fleet to 116 aircraft by 2031, including Boeing 737 narrow-body jets and Airbus A330neo wide-body aircraft, with further long-term ambitions to reach 160 aircraft serving 106 destinations. However, delivery timelines remain subject to global supply chain constraints, with management acknowledging delays in aircraft deliveries. Despite the expansion push, MAG operations and enhancing reliability for our customers,” he said. MAG is also pressing ahead with fleet modernisation to support its expansion strategy.

Uzbekistan in talks with AirAsia, other airlines to expand connectivity