Analyst: The tense situation in the Middle East casts a shadow over the prospects of Malaysia's tourism industry.

Securities analysts in a report stated that Malaysia's tourism targets for this year may face pressure due to escalating tensions in the Middle East. The country's tourism promotion efforts aim to attract 47 million tourists and generate 329 billion ringgit in revenue. Tourists from Middle Eastern countries account for only about 0.4% of inbound tourists, but disruptions in major transit hubs may hinder long-haul travel from Europe and other high-spending markets, potentially leading to a decrease of 2 to 3 million tourists. However, they noted that strong regional demand from Asia and resilient domestic tourism should provide some support. The tourism industry may boost destination malls and hotel assets, such as Sunway REIT, CapitaLand Malaysia Trust, and IOI Properties, while food and beverage companies including Farm Fresh, F&N Group, and SDS Group may also benefit.