BUSINESS

Malaysia Airlines Expands China Service as Travel and Investment Surge

Published: Sep. 12, 2025 4:19 a.m. GMT+8

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A Malaysia Airlines passenger jet. Photo: Bloomberg

Malaysia Airlines is expanding its China network with new and restored routes, betting on booming Chinese tourism and business investment under a visa-free travel policy.

Executives said the strongest demand comes from a mix of leisure travelers and business executives. Many Chinese companies are investing in Malaysia in sectors ranging from semiconductors to electric vehicles, while tourists continue to flock to Kuala Lumpur and beach destinations under a mutual visa-free policy.

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Malaysia Airlines is expanding its China network, restoring and adding routes to seven cities, with 60 weekly flights, up from 52.
Strong demand is driven by business and leisure travelers, with 2.18 million Chinese visitors to Malaysia in H1 2025 (up 35.6% year-on-year).
Business-class load factor is 85%, overall at 81%, and the airline plans further expansion targeting China’s secondary cities.

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Who’s Who

Malaysia Airlines: Malaysia Airlines is expanding its China network due to high demand from both leisure and business travelers. The airline is restoring its Kuala Lumpur-Chengdu route after 19 years and increasing Kuala Lumpur-Xiamen flights. These additions will expand its Greater China network to seven cities with 60 weekly flights. The airline aims to further expand into China's secondary cities.

Malaysia Aviation Group: Malaysia Aviation Group is the parent company of Malaysia Airlines. Its Chief Commercial Officer is Dersenish Aresandiran, and its Managing Director is Izham Ismail. The group is expanding its network in China, increasing flights and restoring routes like Kuala Lumpur-Chengdu after a 19-year hiatus. They aim to capitalize on strong demand from both leisure and business travelers.

BYD: BYD, a Chinese company, is establishing a major factory in Malaysia. This is part of a trend of Chinese companies leading new projects in Malaysia, particularly in sectors like electric vehicles (EVs), semiconductors, and data centers.

Geely Automobile Holdings Ltd: Geely Automobile Holdings Ltd., a Chinese company, has established long-standing operations in Malaysia. Malaysia's investment minister highlighted Geely's presence when discussing Chinese companies leading new projects and investments in the country, particularly welcoming investment in semiconductors, data centers, and electric vehicles.

Firefly: Firefly is a sister carrier to Malaysia Airlines. It may operate charter flights to China's secondary cities as part of Malaysia Aviation Group's expansion plans, alongside scheduled Malaysia Airlines flights.

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What Happened When

2006：: Malaysia Airlines suspended its nonstop service between Kuala Lumpur and Chengdu.

2017：: Malaysia Airlines flew to 11 Chinese cities, including Wuhan, Chongqing, and Haikou, operating 90 flights per week.

2024：: A Chinese factory owner relocated his plant to Kuala Lumpur to sidestep U.S. tariffs and began flying monthly between China and Malaysia.

2025：: 20,000 pre-sale tickets for Chengdu flights by Malaysia Airlines were sold during Kuala Lumpur’s international travel fair.

First half of 2025：: 2.18 million Chinese visitors arrived in Malaysia, up 35.6% from a year earlier, as reported by Malaysia’s tourism bureau.

First half of 2025：: Malaysia Airlines’ China flights averaged an 81% load factor, according to Managing Director Izham Ismail.

Q2 2025：: Chinese and Malaysian carriers operated about 12,400 flights between the two countries, offering 2.49 million seats, up 36% and 32% respectively from Q2 2024.

Mid-2025：: Malaysia outperformed other Southeast Asian destinations during the recent peak season, bucking a regional downturn.

Earlier in September 2025：: Malaysia’s investment minister Tengku Zafrul Aziz stated that Chinese companies are leading new projects in Malaysia, including a major BYD factory.

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