BUDGET: RM2 Billion Fund Set Up To Promote Tourism Industry

KUALA LUMPUR, Oct 25 (Bernama) -- A sum of RM2 billion will be provided to the Special Tourism Fund under Bank Pembangunan Malaysia to promote the tourism industry.

The fund will provide soft loans at low interest rates between four and six per cent with the government providing a subsidy of two per cent, said Prime Minister Datuk Seri Najib Tun Razak when presenting the 2014 Budget at the Dewan Rakyat Friday.

"The fund will be used to finance the cost of building infrastructure such as hotels, resorts and theme parks as well as purchase and replacement of equipment related to the tourism sector," he said.

To further promote Malaysia as a preferred tourist destination, he said the government would continue to encourage investments, particularly in new four and five-star hotels. "The measure will ensure adequate supply of international standard accommodation and increase tourist arrivals, especially from the luxury and high-spending category.

"To support this, the government proposes the application period for pioneer status and investment tax allowance incentives be extended for another three years until Dec 31, 2016," he said.

In continuous efforts to attract more tourists, Najib announced 2015 as the Year of Festivals, showcasing a variety of cultural programmes and festivals in the country.

He also announced that the government would allocate RM1.2 billion for operating and investment expenditure, including for promotion and advertising, for this year and next year.

In view of the encouraging performance, 2014 has been declared Visit Malaysia Year, targeting 28 million tourists, he added. "The tourism sector is expected to generate RM65 billion in revenue and has the potential to contribute further," he said.
-bernama.