The Malaysian Association of Hotels (MAH) has acknowledged the government’s recent announcements and suggestions, emphasising the importance of practical and sustainable approaches to address the challenges in the hospitality sector.
Following the announcement of the National Budget 2025 by YAB Dato’ Seri Anwar bin Ibrahim, MAH expressed gratitude for the allocation of RM 550 million for the ASEAN Tourism Forum (ATF) 2025 and Visit Malaysia Year (VMY) 2026, as well as the RM 110 million allocated for ecotourism. However, the Association urges the government to consider additional support mechanisms, particularly concerning tax incentives and operational cost alleviation for the industry.
The increase in the minimum wage to RM 1,700, effective February 2025, raises concerns over higher operational costs. The lack of targeted tax exemptions for 4- and 5-star hotels, under the “Pioneer Status and Investment Tax Allowances,” is a missed opportunity to stimulate investment in the sector. Additionally, MAH highlights the need for transparency regarding the Tourism Tax (TTx) to ensure funds are reinvested into the industry’s infrastructure, maintenance, and promotion.
MAH also responded to recent comments by YB Dato’ Seri Tiong King Sing, Minister of Tourism, Arts and Culture, regarding the proposed implementation of a 23-hour stay policy for hotels. While MAH appreciates the Minister’s focus on enhancing guest satisfaction, the Association stresses that such a policy is operationally challenging. Hotels need adequate time to maintain hygiene, safety, and room quality, especially in light of the manpower shortages that continue to affect the sector.
MAH welcomes ongoing collaboration with the Ministry of Tourism, Arts and Culture (MoTAC) and other relevant authorities to ensure that any proposed changes are feasible and sustainable for both the industry and guests. The Association calls for focused efforts to address the current manpower shortages and rising operational costs before any policy adjustments are considered.
“The government’s efforts to invest in our industry are appreciated, but it is imperative that these measures address the pressing needs of hoteliers and ensure sustainable growth for the future,” added Datin Christina.