Against a backdrop of global trade uncertainty, geopolitical tensions, and continued pressure on corporate costs, Malaysian companies are redesigning rather than reducing their incentive travel programmes, with China emerging as one of the biggest beneficiaries.
“Cost is always the number one factor for MICE organisers,” said Kathryn Lee, executive director of DeKim Tour & Travel based in Johor, Malaysia. She noted that small and medium-sized enterprises are increasingly choosing Chinese destinations such as Kunming, Guiyang, Zhangjiajie, and Chengdu over Japan and South Korea because they offer better value.
“Clients are not cutting back on food or accommodation. Instead, they’re shortening the programme by a day and giving delegates more free time. Average group sizes have also fallen to 20 to 30 delegates, from around 50 a year ago,” Lee elaborated.
China’s secondary cities are also gaining traction as companies opt to pair neighbouring destinations rather than focusing on just one.
“Pairing cities such as Shanghai and Hangzhou or Guangzhou and Foshan enables organisers to deliver a more diverse programme without increasing costs significantly, thanks to China’s extensive high-speed rail network and short transfer times,” said Mia Ding, marketing director at Everbright Travel in Nanchang, Jiangxi Province.
“We’ve seen Malaysian incentive and FIT business to southern China grow three- to four-fold over 2023 and 2024 levels, as companies favour destinations closer to home that benefit from direct air links and visa-free travel,” Ding shared. Everbright Travel’s corporate clients hail mainly from Kuala Lumpur and Penang, and are largely from the manufacturing, financial, automotive, and multi-level marketing sectors.
Ding added that an oversupply of hotel rooms has pushed rates down, enabling many companies to upgrade from four-star to five-star properties without expanding their budgets.
Guohui Shi, chairman of China Prime DMC, said the shift reflects a growing integration of business and incentive travel. “Malaysia remains one of our key source markets, and enquiries have already started coming in for 2Q2027,” he said.
Shi noted that business from Malaysia has grown 10 per cent year-on-year, with half of all programmes combining factory visits with incentive activities such as sightseeing tours. Many manufacturing delegations now pair Guangzhou with nearby industrial hubs such as Foshan, Zhongshan, and Zhuhai, while the Canton Fair continues to attract Malaysian companies seeking B2B meetings with Chinese suppliers.
