KUCHING: The Malaysian Association of Hotels (MAH) welcomes the initiatives for the tourism industry especially hotels under the Short-Term Economic Recovery Plan (Penjana) announced recently by Prime Minister Tan Sri Muhyiddin Yassin.
MAH Sarawak branch chairman, Ibrahim Nordin, said overall it was good especially as it covered tourism financing and tax exemption.
“We all know that the hotel industry is bleeding. There has been no revenue since the movement control order (MCO) started on March 18. Only hotels used as quarantine centres have some relief.
“Owners and managements are digging deeper to cover their costs. Therefore, assistance from the government would help hotels,” he told New Sarawak Tribune yesterday (June 6).
When announcing the Penjana on Friday Muhyiddin said the service tax exemption for hotels would be extended to June 30, 2021.
He also said the deferment of tax instalment payments for tourism industry players such as tour agencies, hotel operators and airlines for the period from April 1 to Sept 30 would also be extended for three months more from Oct 1 to Dec 31 this year.
On the extension of Wage Subsidy Programme, Ibrahim said the extension was for three more months. It provides allowances for those under unpaid leave or reduced work.
“However, the wage subsidy is insufficient as we had proposed 50 percent for those earning below RM4,000 and 30 percent for those earning between RM4,000 and RM8,000,” he said.
He added that the Hiring Incentive Programme worth RM1.5 billion would encourage the hiring of the unemployed, which should be good to contribute towards economic recovery.
“Hopefully, payments under the initiatives would be expedited as soon as possible,” Ibrahim said.
