Airfares to Malaysia for CNY period soar, but demand for cross-border land transport uneven

SINGAPORE – In December 2023, Ms Jennifer Chee spent $1,300 on air tickets to go back to her home town in Sandakan, Sabah, during the Chinese New Year period about two months later.

In contrast, the same trip to the Malaysian city in mid-November 2024 costs as low as about $240, an online check showed.

To avoid paying too much of a premium for her trip back for Chinese New Year in 2025, the 33-year-old designer booked her outbound and inbound flights in February and June, respectively, paying $700.

She said she bought the tickets earlier because she was expecting the prices to go up later in the year. This saved her about $600.

For the period of Jan 25 to 31, 2025, economy-class return tickets for flights to Penang and Kuala Lumpur range from $414 to $983, while a return flight to Kuching can go up to $967 in the same period, according to The Straits Times’ checks online. Chinese New Year falls on Jan 29 and 30 in 2025.

Airlines that ST contacted said flights to Malaysian destinations during that festive period are popular. A Malaysia Airlines spokesperson said demand for such flights has come earlier in 2024, with the carrier seeing a 30 per cent increase in demand so far compared with the same period in 2023.

Mr Dersenish Aresandiran, chief commercial officer of airlines under the Malaysia Aviation Group, said fares for its flights have not increased compared with previous years, and have instead “shown a decreasing trend”. He attributed the drop to an increase in the number of flights. The group operates four airlines, including Malaysia Airlines and Firefly.

Other major airlines ST approached declined to provide sales figures, citing commercial sensitivities, with Singapore Airlines saying only that it continues to see healthy passenger demand for this festive period.

The demand for cross-border land transport provided by operators that ST contacted is uneven, though some say it is still early days yet.

One local private cross-border transport operator said it has received five bookings and over 20 inquiries about his services so far.

He said demand for his services usually increase by 30 per cent to 50 per cent during the Chinese New Year period, but it could go up further for the festive period in 2025. This is because of Singapore’s clampdown on foreign vehicles providing cross-border services, as well as Malaysia’s enforcement of the Vehicle Entry Permit (VEP) scheme for Singapore-registered private cars.

Such vehicles are required to have registered for the VEP from Oct 1 before entering Malaysia, though many drivers have expressed frustrations about delays and kinks in the application process.

“We have enough drivers at the moment as our drivers from other races will help to cover those who are celebrating Chinese New Year,” said the operator, which provides transport services to Johor Bahru, Melaka, Kuala Lumpur and Bangkok.

But a Malaysian operator told ST it is expecting lower demand compared with before the Covid-19 pandemic.

“Demand during the Chinese New Year period before the pandemic was high, and we received about 40 booking requests yearly. However, we are expecting a more moderate demand for this upcoming festive season,” the operator said, adding that its numbers in the post-pandemic years have been lower than before Covid-19.

“This is due to increased competition in the transport sector. Compared with previous years, there are now many more options available, which has led to us facing more intense competition.”

Some operators may also lower their prices, the Malaysian operator said.

Malaysian bus operator Causeway Link, which has already started selling its tickets for the Chinese New Year period, said it is expecting “a significant increase in demand for 2025”, particularly for routes from Singapore to Bukit Bintang in Kuala Lumpur, and Melaka. It declined to provide sales figures, citing commercial sensitivities.

A spokesman said ticket prices will increase during the festive period – it costs RM192.50 (S$60) between Singapore and Kuala Lumpur and RM157.50 between Singapore and Melaka. According to Causeway Link’s website, tickets normally cost between RM70 and RM87.50 for these trips.

He added that the price hike is due to increased operational costs, such as from having additional drivers, extended driving hours to cope with the traffic congestion on the highway and anticipated delays at the Causeway.

However, sales for Malaysian bus operator Sri Maju Group have been slow since it started selling tickets in the first week of October.

“There are a few upcoming holidays such as Christmas and New Year, which are quite close to the Chinese New Year dates, so Malaysians working here may still be contemplating if they want to head back home a second or third time next year,” said its manager Susan Ng.