Tourism and hotel services in Malaysia
Rising Global Consultants
Hotel business
As the third largest component of the service industry, tourism contributes 6% to Malaysia’s GDP and provides 23% of national employment, equivalent to 3.5 million jobs (Source: DOSM). Tourism activities have a multiplier effect on ecosystems such as the hotel industry, tourism projects, retail, dining, and transportation services
Malaysia continues to receive industry recognition, earning three Pacific Asia Travel Association (PATA) Gold Awards in 2019, as well as medical tourism awards given to institutions such as the Malaysia Healthcare Travel Council (MHTC), TMC Fertility, and Thomson Hospital Kota Damansara, acknowledging their excellent medical care and services
92.4%
Domestic investment
3.93 billion Malaysian Ringgit
The total approved investments in 2019
7.6%
Foreign investment
Equity requirements
Hotel
- 1-2 star: 100% Malaysian ownership
- 3 star: At least 30% Malaysian ownership
- 4-5 star: 100% foreign equity allowed
Theme park
- 100% foreign ownership allowed
Convention center
- 100% foreign ownership allowed
Recreational parks / Other tourism projects
- At least 49% Malaysian ownership, including a reserved 30%.
Government support
For 4-star and above hotel projects in Sabah and Sarawak, companies are eligible for 100% Pioneer Status (PS) or 100% Investment Tax Allowance (ITA), which can be used to offset 100% of the statutory income for each assessment year
Emerging Industry Status (PS)
Companies can enjoy a 70% tax exemption on statutory income for each taxable year based on their Emerging Industry Status.
OR
Investment Tax Allowance (ITA)
Companies can enjoy a 60% income tax exemption on eligible capital expenditures incurred within five years, which can be used to offset 70% of the statutory income for each taxable year.
For hotel projects rated 4 stars and above in Sabah and Sarawak, companies are eligible for 100% Pioneer Status (PS) or 100% Investment Tax Allowance (ITA). Such allowances can be used to offset 100% of the statutory income from business operations for each tax year
Welcome to Contact Us
Phone Number: +60 3-8682 1802 | E-mail: officer@rising.com.my