KUALA LUMPUR, March 25 ― The quarantine-free entry for all fully-vaccinated arrivals from around the world will be key to reviving leisure and business travel into Malaysia, CGS-CIMB said.

In a note, the research firm said the government’s move to reopen the country's borders on April 1, 2022, will result in a gradual travel recovery as travellers may still be cautious due to the ongoing Covid-19 pandemic.

"We expect airlines to launch more flights to take advantage of new travel demand emerging as a result of Malaysia relaxing inbound travel restrictions,” it said.

CGS-CIMB added that the announcement was positive for the aviation industry, especially its top pick Malaysia Airports Holdings Bhd; thus maintaining its "overweight” stance on the sector.

However, it noted that downside risks to its call include slower business travel recovery as companies seek to preserve travel cost savings and have gotten used to virtual options.

"Meanwhile, leisure travellers also have to consider how being infected while abroad may prevent them from flying home and having to extend their overseas stay at their own cost,” it said.

The government has relaxed more Covid-19 restrictions, including allowing fully-vaccinated travellers to enter the country without undergoing quarantine from April 1, 2022, as Malaysia transitions into the endemic phase.

Meanwhile, Malaysia and Singapore have agreed to reopen their land borders for fully-vaccinated travellers beginning April 1, 2022, without the need for them to take Covid-19 pre-departure and arrival tests or be quarantined. ― Bernama