By Chester Tay

Malaysia Airports Holdings Bhd. said passenger numbers plunged 98% in May from a year earlier due to pandemic restrictions on travel.

The fall was a slight improvement from April, which reflected some travel between states in Malaysia after lockdown conditions were eased.

Some 237,000 passengers passed through Malaysian airports in May, the company said.

Passenger numbers fell 54% to 25.9 million in the first five months of the year, it said.

Malaysia Airports said tax incentives in the government's recent 35 billion ringgit ($8.24 billion) economic recovery plan are expected to boost domestic tourism through to December 2021.

Write to Chester Tay at chester.tay@wsj.com