PUTRAJAYA’S latest economic stimulus package has little to offer the battered tourism and hotel industry, which is still trying to recover from the Covid-19 pandemic and the lockdowns, said Yap Lip Seng.

The Malaysian Association of Hotels (MAH) chief executive director said that a higher wage subsidy programme is much needed to keep hotels and tourism business afloat, without which more will be forced to retrench.

“The announcement by the prime minister, that we now know as ‘Permai’, came with much anticipation of the industry after being forced under MCO (movement-control order) restrictions again, crippling the tourism industry once more.

“Having lost literally all revenue streams, the hotel industry was looking forward to more direct assistance, such as higher wage subsidies, higher electricity and water discounts and even discounts on assessments.

“The announcement, however, again fell short of industry’s expectations. Other than the 10% discount on electricity, and that is only from January to March 2021, there was no other assistance extended to the hotel industry. Moratorium on loans was again left at the hands of commercial banks and financial institutions,” he said in a statement today.

Prime Minister Muhyiddin Yassin today announced a fifth economic stimulus package amounting to RM15 billion, as most of the country enters the second week of strict movement curbs. 

Muhyiddin said there will be 22 initiatives carried out under the Permai economic stimulus package.

With Permai, the government aims to combat the Covid-19 pandemic, take care of the people’s welfare and ensure business survival.

Last year, the government allocated a total of RM305 billion through the Prihatin, Prihatin SME plus, Penjana and Kita Prihatin packages.

Yap said MAH had repeatedly proposed a 50% wage subsidy for those earning up to RM4,000 and 30% for those up to RM8,000 in order for employers to retain jobs of the people but the suggestion fell on deaf ears.

“Regretfully the tourism industry is being neglected again despite its contribution to the economy of the country, and is being left to collapse.

“Malaysia will continue to lose competitiveness and also talent, and along with it, its capacity for recovery. With no clear direction and forward plans for the tourism industry, there is little hope of survival,” he  said. – January 18, 2021.