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Hospitality
Sub-sector
Malaysia’s hospitality industry presents significant investment opportunities, driven by strong tourism growth, government incentives, and rapid digital transformation. The country’s diverse attractions, from vibrant cities to pristine islands and cultural heritage sites, continue to attract millions of visitors annually. To support the industry’s expansion, the Malaysian government offers various incentives to encourage investment. These include tax exemptions, investment allowances, and tourism grants provided by agencies such as the Malaysian Investment Development Authority (MIDA) and the Ministry of Tourism, Arts, and Culture (MOTAC).
Tourism in Malaysia is on the rise, with 12.94 million tourist arrivals in 2024, marking a 46.7% increase from 8.82 million in 2023. Singapore remains the leading source of tourists, contributing 9.1 million visitors, while China recorded the highest growth rate with a remarkable 123.0% increase in arrivals. According to a study by Insider Monkey, Malaysia has been recognized as the most loved country in Asia. The study evaluated 20 Asian countries using metrics such as respect, number of visitors, friendliness, diversity, and democracy. Malaysia achieved an overall score of 0.701, excelling across these metrics.
In 2024, Malaysia experienced significant growth in tourism, welcoming 22.5 million foreign visitors between January and November, marking a 26% increase compared to the previous year. The majority of these tourists came from Singapore, Indonesia, and China. To further boost tourism, Malaysia extended visa exemptions for Indian and Chinese nationals until December 31, 2026. Additionally, Malaysia was named “Destination of the Year” at the TripZilla Excellence Awards 2024, reflecting its appeal among travel enthusiasts. These accolades underscore Malaysia’s growing prominence as a top travel destination in Asia./p>
Additionally, programs like Malaysia My Second Home (MM2H) attract long-term expatriates, increasing demand for high-quality hospitality services. By leveraging these strengths—booming tourism, investor-friendly policies, and digital innovation—Malaysia is well-positioned to become a leading investment destination in the global hospitality industry.
Sources:
What is hospitality?
What is Malaysia My Second Home Programme
Asia’s most loved country named 2024 destination of the year
Malaysia ranks first as “most loved” country in Asia
Malaysia Tourism Statistics
For more statistics, please click here.
Government Initiative
National Tourism Policy (NTP) 2020–2030
Malaysia’s National Tourism Policy (NTP) 2020–2030 serves as a strategic blueprint to position the country as a premier global tourism destination and to place Malaysia among the world’s top 10 tourism destinations in both arrivals and revenue. The policy will be implemented through six main strategic thrusts, including transforming governance, creating an inclusive tourism investment zone, and accelerating digitization in the tourism sector.
In the long term, NTP aims to strengthen Malaysia’s position as a key player in the global tourism market. By 2023, the tourism sector is targeted to contribute 16.6% to GDP, with 30 million tourist arrivals and RM120 billion in tourism receipts. This policy will be driven by six key strategic thrusts, including strengthening governance, developing inclusive tourism investment zones, and accelerating digitalization within the tourism sector.
Visit Malaysia 2026
Visit Malaysia Year 2026 (VMY 2026) aims to position Malaysia as a premier global tourism destination, targeting 35.6 million visitors and generating RM147.1 billion in revenue. This nationwide campaign will showcase Malaysia’s rich culture, breathtaking landscapes, and world-class attractions, making it a must-visit destination for travellers worldwide. The VMY 2026 roadmap is built on three key strategies: creating demand through strong branding and marketing campaigns, increasing traffic by enhancing connectivity and accessibility, and prioritizing target markets to attract high-value tourists. Through strategic partnerships, industry collaborations, and digital innovations, Malaysia is set to elevate its tourism offerings while ensuring a sustainable and inclusive travel experience. Tourism Malaysia continues to engage with stakeholders and international partners to refine and execute these strategies, reinforcing Malaysia’s position as a top travel destination in the region.
Sources:
National Tourism Policy 2020-2030
Tourism Malaysia Unveils Strategic Roadmap for Visit Malaysia 2026
Redefining travel experiences for Visit Malaysia 2026
Hotels
1 & 2 Star : 100% Malaysian
3 Star : At Least 30% Malaysian
4 & 5 Star : No Equity Restriction
Theme Parks
No Equity Restriction
Convention Centres
No Equity Restriction
Recreational Parks / Other Tourism Projects
At least 49% Malaysian including 30% reserved
New projects involving these promoted activities within the tourism industry are eligible for incentives:
Theme Parks
Convention Centres
Recreational Parks
Hotels (1- 3 Star)
Other Tourism Projects
To boost investor interest, the Government provides tax incentives for tourism projects including hotels, theme parks, convention centres, recreational parks and other tourism projects.
Pioneer Status (PS)
Companies may benefit from Pioneer Status of 70% of the statutory income for each year of assessment of its business operations.
OR
Investment Tax Allowance (ITA)
Companies may benefit from income tax exemption package of 60% allowance on the qualifying capital expenditure incurred within a period of 5 years where the allowance can be used to offset against 70% of the statutory income for each year of assessment of its business operations.
Expansion, modernisation and refurbishment projects for the following establishments are eligible for incentives:
Hotels (1-5 Star)
Theme Parks
Other Tourism Projects
To strengthen the competitiveness of the tourism industry, the Government provides tax incentives for the expansion, modernisation and refurbishment of hotels, theme parks and other tourism projects.
Investment Tax Allowance (ITA)
Companies may benefit from income tax exemption package of 60% allowance on the qualifying capital expenditure incurred within a period of 5 years where the allowance can be used to offset against 70% of the statutory income for each year of assessment of its business operations.
