KUALA LUMPUR – Malaysia Airports Holdings Bhd (MAHB) is in the midst of forming a strategic partnership with a Hong Kong-based technology firm to deploy a “digital superhighway” to boost Chinese tourist arrivals to Malaysia while enhancing their travels here via an all-encompassing mobility platform, sources said.
The platform, called My-Compass, is tipped to be a component of a Chinese super app that has more than 870 million users in the mainland alone, increasing the visibility of Malaysia as a choice travel destination.
It is understood that the platform is currently being developed by Boxcube Ltd, and would act as a “neutral host” linked to a string of local services such as e-hailing, accommodation, rail and chartered transportation, e-commerce, restaurant bookings, deliveries, and other related tourist activities.
Aside from offering greater access to the vast Chinese tourist market and enhancing visitor experience, Boxcube’s user-friendly platform is aimed at crowd movement efficiency in Malaysian airports and driving traffic to local merchants.
It is also learned that the solution by Boxcube – which has offices in Kuala Lumpur, Chengdu, and Shenzhen – is being offered for free to MAHB with a revenue-sharing arrangement via a commission-based model.
The source familiar with the matter said Boxcube’s collaboration has been in the works for over a year.
The “non-exclusive” nature of the deal is consistent with MAHB’s desire to work with as many world-class digital technology providers to boost KLIA’s revenue and Malaysia’s position as a tourist destination.
The platform is expected to be rolled out gradually in the coming months, with user numbers expected to grow exponentially by the end of this year.
“With the revenue-sharing arrangement, the collaboration will be a win-win situation for everyone,” the source said.
“MAHB is also slated to be given greater (app user) eyeball capability.”
MAHB is one of the largest airport operator groups in the world in terms of the number of passengers handled, with 39 airports across the country. It also operates Sabiha Gökçen International Airport in Istanbul, Turkey.
Chinese tourists form the largest group among all visitors to Malaysia, and the tourism industry alone contributes to nearly one-third of its gross domestic product.
Not a govt special purpose vehicle, no data compromised
The Vibes learned that the MAHB-Boxcube tie-up does not involve the setting up of a special purpose vehicle.
With the platform being offered to MAHB for free, the agreement would not involve any payment from the airport operator or any taxpayer funds.
Furthermore, user data will remain secure as sensitive personal details of the Chinese super app’s users will not be disclosed to third parties.
Malaysians need not worry as the app is used by those from abroad and therefore concerns under the Personal Data Protection Act 2012 would not apply.”
Because there is no exclusivity within the agreement between MAHB and Boxcube, the question of a monopoly does not arise.
“It’s an open market and anyone is welcome to provide solutions that enhance tourism in Malaysia.
“But also, Boxcube is one of a select few companies with an internet content provider licence in China, which is not easy to obtain due to strict regulations by the Chinese government.” – The Vibes, April 18, 2023
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