Malaysia’s visa waiver promises economic shot in arm, say experts

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PETALING JAYA: Experts believe Malaysia’s recent move to allow visa-free entry for Chinese and Indian nationals will have an immediate and positive impact on the country.

Bank Muamalat chief economist Afzanizam Abdul Rashid said facilitating the entry of tourists from larger economies would have an immediate spillover effect on the domestic economy.

He said an increase of 1% in tourist spending will see Malaysia’s gross domestic product (GDP) go up by 1.4%.

“Foreign tourists typically allocate their spending to shopping (33.6%), accommodation (24%), food and beverages (13.3%), local transportation (7.6%), and organised tours (6.3%),” said Afzanizam.

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