MOF TO ALLOCATE ADEQUATE FUNDS FOR TOURISM SECTOR AHEAD OF ASEAN CHAIRMANSHIP, VMY 2026

KUALA TERENGGANU, Sept 19 (Bernama) --The Ministry of Finance (MOF) will allocate adequate funds to the tourism sector in preparation for Malaysia's role as ASEAN Chair in 2025 and the Visit Malaysia Year 2026.

Finance MInister II, Senator Datuk Seri Amir Hamzah Azizan said Malaysia has a significant opportunity to enhance global awareness of its tourism sector through its ASEAN chairmanship.

“The year 2026 will also be Visit Malaysia Year, so we must prepare for both events. Tourism is a crucial sector because it rapidly generates revenue for the country.

“Fortunately, this year we are seeing positive trends, with Malaysia expected to welcome more tourists than before the COVID-19 pandemic,” he told reporters after a meeting with Terengganu tourism stakeholders regarding the 2025 Budget at the Terengganu Museum here today. 

He added that while discussions on the tourism sector were held in Terengganu, tMOF would incorporate insights from the engagement session to enhance tourism nationwide in next year’s budget.

"Firstly, with the Visit Malaysia Year 2026 approaching, we must improve or maintain infrastructure across the country. We will identify priority areas to upgrade, ensuring better comfort for tourists.

"Secondly, there were suggestions to support those in the industry through incentives or skill development, such as training as tour guides. We will explore this further with the Tourism, Arts, and Culture Ministry (MOTAC)," he added.

Amir Hamzah also shared that during MOF’s ninth engagement session with industry players, there were requests to tailor financing infrastructure more appropriately for tourism sector stakeholders. 

"This Budget 2025 roadshow aims to gather comprehensive feedback, ensuring the creation of a more focused budget that will strengthen the national economy," he said.

Meanwhile, addressing the recent surge of Malaysians traveling to Thailand, Amir Hamzah urged the public to focus on domestic tourism to boost the national economy, rather than traveling abroad, despite the strengthening ringgit.

"Alhamdulillah, our ringgit is getting stronger. This year alone, the ringgit has appreciated by about seven per cent. The Gross Domestic Product (GDP) grew by 4.2 per cent in the first quarter and 5.9 per cent in the second quarter.

"As conditions improve, people may have more opportunities to travel abroad. However, we encourage them to first explore what our country has to offer. We have a wealth of natural treasures and new attractions that Malaysians should take pride in," he said.

Earlier, media reports indicated that nearly 100,000 Malaysian tourists visited Thailand during the school holidays and Malaysia Day recently, contributing over 1 billion Baht (RM129 million) to Thailand’s economy.

Regarding the distribution of 'wang ihsan' to Terengganu, Amir Hamzah said both the federal and state governments share the common goal of strengthening the national economy and are committed to collaboration.

"When there are proposals to address domestic issues such as poverty and to improve basic infrastructure for the people, we are always ready to cooperate. It’s not about you win, I lose. It’s about how we can build Malaysia together," he said.

The state government is reported to be seeking the remaining payment of oil royalty or wang ihsan, estimated to exceed RM1 billion, including approximately RM700 million yet to be settled by the Federal government for 2023 and payments for this year.

In April, the Federal government was reported to have disbursed RM172.3 million in wang ihsan to Terengganu and RM58.6 million to Kelantan.

-- BERNAMA