KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Philippine Airlines Inc. is scaling back its flights to China, joining other carriers in reducing operations amid sluggish travel demand and deteriorating diplomatic relations between Beijing and Manila.
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Stanley Ng, the chief executive officer of the Philippines’ national airline, confirmed the reductions to Bloomberg News. The decision comes after similar cutbacks from Cebu Pacific Air and Philippines AirAsia in recent months, along with reduced services from China Southern Airlines Co. to the Philippines.
Specific Reductions and Travel Trends
The Manila-based airline plans to decrease its services to Beijing and Guangzhou in the coming months, according to scheduling data tracked by AeroRoutes. Flights to China have not rebounded to pre-pandemic levels, indicating a persistent decline in demand for travel to the region.
This reduction follows Philippine President Ferdinand Marcos Jr.’s recent ban on online casinos that catered to Chinese gamblers, citing concerns over crime and money laundering associated with the industry. During the previous administration of Rodrigo Duterte, ties with China strengthened, leading to a boom in Chinese tourism and investments that significantly boosted the Philippine economy.
Impact of Diplomatic Relations
Since Duterte's departure, tensions over territorial disputes in the South China Sea have strained relations between the Philippines and China. The Philippines has also increased military cooperation with Western nations, further exacerbating diplomatic strains. Notably, China has not included the Philippines in its list of countries benefiting from visa waivers and easier travel arrangements this year.
Chinese arrivals to the Philippines, which once ranked as the second-largest group of visitors due to the country’s appealing climate and beaches, have dropped to about 20% of pre-pandemic levels. Currently, China ranks as the 14th most popular destination for Filipinos, accounting for only 2.3% of international travel.
Changing Preferences Among Chinese Travelers
Independent aviation analyst Brendan Sobie noted that Chinese tourists now have numerous attractive visa-free options in Southeast Asia. “The attractiveness of destinations is always changing for the Chinese traveler, and at the moment, the Philippines is just not appealing,” Sobie stated.
Currently, Philippine Airlines operates 20 flights a week to China, including three to Beijing, but services to Guangzhou have become infrequent. Pre-COVID, these routes were nearly daily. Philippines AirAsia ceased all flights to China at the end of August, while China Southern has also reduced its schedule to the Philippines.
Overall, the challenges faced by Philippine Airlines and other carriers in the region highlight the broader difficulties in reviving international travel to China amid shifting geopolitical landscapes and consumer preferences.
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