KUALA LUMPUR (June 5): To rouse the sluggish tourism industry out of its pandemic-induced lethargy, Prime Minister Tan Sri Muhyiddin Yassin announced today that the Government has allocated RM1 billion to finance transformation initiatives by SMEs in the tourism sector.
This allocation, which is part of the RM35 billion National Economic Regeneration Plan (Penjana) announced today, will help SMEs to remain viable and competitive in the new normal, according to Muhyiddin.
“To aid the tourism sector, an RM1 billion Penjana Tourism Financing (PTF) facility will be made available to finance transformation initiatives by SMEs in the tourism sector to enable them to remain viable and competitive in the new normal. Details of this fund will be announced by Bank Negara Malaysia (BNM) in July 2020,” Muhyiddin said during his live televised national address today.
On top of that, Muhyiddin announced that another RM1.8 billion has been allocated to support the tourism sector during the COVID-19 period in the form of tax incentives.
The tourism tax breaks will be applicable from July 1, 2020 to June 30, 2021.
Besides that, the moratorium on tax instalment payments by tourism-oriented businesses such as travel agencies, hotel operators and airline companies from April 1, 2020 to September 30, 2020 will be further extended by three months until Dec 31, 2020.
Further extension was also granted to service tax exemption for hotels until June 31, 2021 as well as for income tax relief of RM1,000 for tourism expenses until December 31, 2021.