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>Industries>Services>Hospitality (Hotels and Tourism)

Hospitality
Sub-sector

The hospitality industry is known for its vital role as a significant catalyst of global economic growth in driving socio-economic development and job creation. Domestic tourism stayed in the spotlight in 2021, starting with a partial reopening of the Langkawi domestic travel bubble. This has been an encouraging first step to the recovery of the tourism industry, with a total of 38,748 domestic tourist arrivals and RM15.97 million in tourism receipts recorded in 2021.

To re-invigorate the tourism industry, the Government has outlined several strategies in the Twelfth Malaysia Plan (12MP). Among them are restoring tourist confidence to travel safely in a post-pandemic world and providing better quality products and services such as ecotourism and community-based cultural immersion activities which distinctly portray the Malaysian experience. Safety and hygiene will be the focus of all branding and promotional efforts.

The Government has also launched a ten-year transformation plan for the tourism industry, called the National Tourism Policy (NTP) 2020 – 2030. The NTP was formulated to position Malaysia as among the top ten tourist destinations in both arrivals and receipts. One of the key strategies to remain competitive far into the future is to embrace Smart Tourism.

International and domestic tourists enjoy the country’s unique culture, food and melting pot of ethnicities while indulging in the natural biodiversity of sandy beaches, coral reefs and rainforest. The country’s established network of infrastructure caters for a wide spectrum of travellers, from family to adventure-seeking backpackers.

Among efforts to restore travel into Malaysia is the establishment of a vaccinated travel lane (VTL) with the first one launched in November 2021 between the Kuala Lumpur International Airport (KLIA) and Changi Airport of Singapore. For travel advice and other information for business travellers entering Malaysia, please mysafetravel.gov.my

94%

Domestic Investments

(RM3.2 bil)

RM3.4 bil

Total Approved Investments in 2021

90%

6%

Foreign Investments

(RM0.2 bil)

RM3.4 bil

Total Approved Investments in 2021

94%

Domestic Investments

(RM3.2 bil)

6%

Foreign Investments

(RM0.2 bil)

Investments Approved in 2021

29

Approved Projects

RM3.4 bil

Total Approved Investments

2,949

Job Opportunities

For more statistics, please click here.

Equity Requirement 

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

Promoted Activities
(New Projects)

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

Government Support

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.

Promoted Activities
(Expansion Projects)

Expansion, modernisation and refurbishment projects for the following establishments are eligible for incentives:

Hotels (1-5 Star)

Theme Parks

Other Tourism Projects

Government Support

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.

Image by Datai Langkawi via www.thedatai.com

Our Investors’ Highlights

Encore Melaka Impression Series is Southeast Asia’s largest performing arts theatre which offers a 70-min cultural performance that portrays the six centuries of Melaka’s history.

- PTS Impression Sdn. Bhd.

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MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Find out more about the policies, incentives and facilities in the hospitality sub-sector.
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