OSK Research believes that certain sectors in Malaysia would benefit from the destruction that has followed the severe flooding in Thailand.
The worst flooding in 50 years in Thailand starting from end-July, has so far struck 62 of the country's 76 province in the north, northeast and central region.
In a research note today, OSK Research said as the situation prolongs in Bangkok, tourists and medical tourists may cancel travel plans and instead seek alternative destinations, such as Malaysia.
"We see both AirAsia and Malaysia Airlines benefiting from the diversion of tourist destinations. Malaysia Airports Holdings Bhd could also benefit from higher passenger numbers should tourists divert to Malaysian destinations.
"If their experience in Malaysia is good, this could boost the longer term attractiveness of the country, even after the floods subside in Thailand," it said.
Meanwhile, OSK Research said Malaysian consumer companies would get a short term lift, as they would also be asked to take up the slack in food and beverage production, as Thai factories take some time to resume production.
Additionally, it said the technology and automotive sectors would also benefit, following the extensive damage to their Thai facilities, with total reconstruction efforts estimated at between RM10.1 billion and RM17.2 billion.
"For the long term, both sectors are seen to benefit as potential investors would consider Malaysia, as an alternative investment destination given that the country experiences fewer natural disasters," it added.
The research firm said companies offering services to set up new technology-based manufacturing plants may also reap benefits over the longer term.
The worst flooding in 50 years in Thailand starting from end-July, has so far struck 62 of the country's 76 province in the north, northeast and central region.
In a research note today, OSK Research said as the situation prolongs in Bangkok, tourists and medical tourists may cancel travel plans and instead seek alternative destinations, such as Malaysia.
"We see both AirAsia and Malaysia Airlines benefiting from the diversion of tourist destinations. Malaysia Airports Holdings Bhd could also benefit from higher passenger numbers should tourists divert to Malaysian destinations.
"If their experience in Malaysia is good, this could boost the longer term attractiveness of the country, even after the floods subside in Thailand," it said.
Meanwhile, OSK Research said Malaysian consumer companies would get a short term lift, as they would also be asked to take up the slack in food and beverage production, as Thai factories take some time to resume production.
Additionally, it said the technology and automotive sectors would also benefit, following the extensive damage to their Thai facilities, with total reconstruction efforts estimated at between RM10.1 billion and RM17.2 billion.
"For the long term, both sectors are seen to benefit as potential investors would consider Malaysia, as an alternative investment destination given that the country experiences fewer natural disasters," it added.
The research firm said companies offering services to set up new technology-based manufacturing plants may also reap benefits over the longer term.
