KUALA LUMPUR: The Malaysian Association of Tour and Travel Agents (MATTA) is urging the government to allocate RM85 million in the 2025 National Budget to improve Malaysia's tourism industry.
Of this amount, MATTA proposes that RM40 million be directed specifically to travel agents, tour operators, and tourism trade associations to support tourism-related activities both domestically and internationally.
The association also proposed another RM25 million innovation grant to help travel and tourism operators through a relevant agency, such as Malaysia Digital Economy Corporation (MDEC), to use digital technologies to remain competitive in the global tourism market.
"With more than 50 per cent of travel bookings now being made online, investing in digital transformation is critical for attracting international tourists," it said.
MATTA calls for another RM20 million in capacity-building grants to reskill and upskill tourism workers and enhance service quality towards improving the overall tourists' experiences in the country.
"To ensure effective distribution of the various funds, MATTA suggests a multi-agency approach involving the Ministry of Investment, Trade and Industry (MITI), the Ministry of Human Resources (MOHR), MDEC, and the Ministry of Tourism, Arts, and Culture Malaysia (MOTAC).
"This ensures that grants are accessible to all stakeholders to enhance both inbound and domestic tourism development and growth in the country," the association added.
MATTA also stated that it supports the reintroduction of tax exemptions for tour operators who attract at least 750 foreign tourists or transport 1,500 domestic tourists annually.
"MATTA strongly urges the government to reinstate such tax exemptions to further incentivise the tour operators and stimulate more inbound and domestic tourism activities and the number of tourists towards the Visit Malaysia Year 2026 campaign and beyond," the statement said.
The association also noted that as Malaysia sees a growing demand for luxury and personalised high-end travel experiences, MATTA suggests implementing tax exemptions on the import of luxury vehicles for tour operators serving high-net-worth individuals.
"By easing the financial burden of luxury vehicle purchases by tour operators, Malaysia can better attract affluent travellers and business tourists," it said.
MATTA president Nigel Wong said its proposal for the national budget aims to stimulate growth, attract more tourists, and ensure Malaysia's tourism industry continues to grow in the coming years.
"With strategic investments in funding, tax relief, and policy enhancements, Malaysia is well-positioned to reach its goals for Visit Malaysia Year 2026 and beyond, ultimately contributing to sustainable economic recovery and growth for the country and people," he adds.