THE IMPORTANCE OF AIR

TRANSPORT TO MALAYSIA
The air transport sector makes a major
contribution to the Malaysian economy

460,000 DIRECT SUPPLY EMPLOYEE TOURISM

JOBS
CHAIN SPENDING

SUPPORTED BY THE
AIR TRANSPORT
SECTOR

$11
BILLION
GROSS VALUE ADDED
CONTRIBUTION
TO MALAYSIA’S
GDP IN 2014 120,000 100,000 15,000 220,000
JOBS JOBS JOBS JOBS

3.3%
GDP
SUPPORTED BY AIR
TRANSPORT & FOREIGN
TOURISTS ARRIVING
BY AIR
US $2 US $2.6 US $0.4 US $6.3
BILLION GROSS VALUE ADDED

It creates jobs... or all of which are subsequently tourists supported a further

Airlines, airport operators,
airport on-site enterprises
(restaurants and retail),
aircraft manufacturers, and air
navigation service providers
employed 120,000 people in
Malaysia in 2014. In addition,
by buying goods and services
from local suppliers the sector
supported another 100,000
jobs. On top of this, the sector
is estimated to have supported
a further 15,000 jobs by paying
wages to its employees, some
spent on consumer goods $6.3 billion gross value added
and services. Foreign tourists contribution to the country’s
arriving by air to Malaysia, who GDP. This means that 3.3
spend their money in the local percent of the country’s GDP is
economy, are estimated to supported by the air transport
have supported an additional sector and foreign tourists
220,000 jobs in 2014. arriving by air.
...and generates wealth
The air transport industry is
estimated to have supported a
$4.9 billion gross value added
contribution to GDP in Malaysia
in 2014. Spending by foreign
 The importance of air transport to Malaysia

Air transportation facilitates exports,

foreign direct investment, and tourism
The ten most popular direct flight links: 1. Indonesia
2. Singapore
3. Thailand
4. China
5. India
6. Australia
7. Hong Kong
8. Vietnam
9. Philippines
10. Chinese Taipei

7 10
5
8 9
3

2
1

US $250
BILLION
EXPORTS
US $140
BILLION
US $21.2 FDI
BILLION
FOREIGN The scale of investment, spent US $21.2 billion in Malaysia,
TOURIST
EXPENDITURE exports, and inbound supporting restaurants, hotels,
spending in Malaysia transport providers, and others
who cater to tourists. In addition,
Air transport brings tourists and Malaysia exported US $250 billion
investment into Malaysia, and worth of goods and services in
helps businesses trade their 2014. Over time, the country has
goods and services around the accumulated US $140 billion in
world. In 2014, foreign tourists foreign direct investment.
The importance of air transport to Malaysia

The air transport sector connects

people around the world
Number of direct flight destinations in the ten The air transport sector’s ability

56
fastest growing countries to connect Malaysia to emerging
countries and fast growing
India 9 cities can help drive economic
Bangladesh DIRECT FLIGHT
DESTINATIONS IN
growth. There are 56 direct
Vietnam THE 10 FASTEST flight destinations among the
GROWING
Pakistan COUNTRIES ten fastest growing countries
China 14 in the world as measured by
Indonesia 19 GDP growth and 99 direct flight
Philippines destinations among the 20
Kazakhstan fastest growing countries. There
Angola are 183 direct weekly flights
Nigeria among the ten fastest growing

183
cities in the world as measured
Number of direct flights to the top ten fastest by GDP growth and over 1,800
growing cities direct weekly flights among the
DIRECT WEEKLY 100 fastest growing cities. 1

Surat
FLIGHTS TO THE
TOP 10 FASTEST
Ahmedabad GROWING Arrivals by continent
Ho Chi Minh City 70 CITIES
Hà Noi 23 Europe and Europe are the
Delhi 20 largest sources of arrivals to
Bengaluru 16 Malaysia after Asia-Pacific. In
Hyderabad (India) 8 2014, 1.5 million passengers
Kinshasa arrived to Malaysia from Europe
Dhaka 44 (2.9 percent of the total) and 1.5
Lagos million passengers arrived from
Europe (2.9 percent).
Arrivals by continent, number of passengers (000s)

1,500

270
1,500 47,800

15
200

1
Fastest growing countries are Ranked by Oxford Economics’ forecasted real GDP growth 2015-2030, with a threshold of >US $100 million GDP. Fastest growing
cities are ranked by Oxford Economics’ forecasted real GDP growth 2015-2030, with a minimum city size of 5 million.
 The importance of air transport to Malaysia

Ease of travel, cost competitiveness, and

infrastructure are vitally important
Survey evidence of Key infrastructure facts about
infrastructure and ease of travel Malaysian air transport
1
37
Executives surveyed by the Around 780,000 aircraft land AIRPORT
AMONG
World Economic Forum or take off from Malaysia every THE TOP 100
suggest that Malaysia’s air year. The country has 1 airport IN THE
AIRPORTS WORLD
transport infrastructure quality that is in the top 100 in the
ranks 7th out of 25 countries world (ranked by passenger
included in the survey in numbers). Kuala Lumpur
Asia-Pacific and 25th globally. International Airport airport NUMBER OF
Malaysia ranks 11th out of carried the most passengers - OPERATING
AIRLINES 780,000
77
25 in Asia-Pacific for visa 50.9 million - in 2014. LANDINGS AND
TAKEOFFS
openness and 5th for cost
competitiveness.

Number of passengers travelling annually through the five

busiest airports in the country (000s)
Infrastructure quality

1
score: 4/7
50,900
KUALA LUMPUR
INTERNATIONAL AIRPORT

Visa openness score :

2 6,900
2

2
5/10 KOTA KINABALU 3
INTERNATIONAL

3 6,600
PENANG INTERNATIONAL
5
1
4

Cost competitiveness
score : 9/10 3
4 4,900
KUCHING INTERNATIONAL

5 2,900
SULTAN ABDUL AZIZ SHAH

2
Entry visa requirements for a tourism visit from worldwide source markets (10 = no visa required for visitors from all source markets, 0 = traditional visa required
for visitors from every source market).
3
Based on ticket taxes, airport charges, and VAT (10=low cost, 0=high cost).

December 2016 For further information contact:

Oxford Economics prepared
this report with IATA’s support. Ian Saxon
isaxon@oxfordeconomics.com
This report is one of several Tel: +44 (0)20 7803 1418
that examine the air transport
sector’s importance around London
the world. Access them all Broadwall House, 21 Broadwall,
from IATA’s website. London, SE1 9PL, UK

www.oxfordeconomics.com
Sources: IATA, Oxford Economics, International Monetary Fund, and national statistics.