The Malaysian Association of Tour and Travel Agents (MATTA) in agreement with the Malaysian Association of Hotels (MAH) is urging for a proposed two-tiered wage subsidy system which is similar to the system used in Singapore, Canada, Australia and the UK.
The tiered system specifically calls on the Government to provide a 50 percent subsidy for employees earning up to RM4,000 and 30 percent for those between RM4,001 to RM8,000 and to be extended till at least June 2021.
The Association is also calling upon the Government to act boldly and decisively, through the National Budget 2021, to bolster a floundering Malaysian tourism industry during this time of economic adversity.
MATTA President Tan Kok Liang says, “The tourism industry is fragile and sensitive for 2021 and likely beyond because of the critical impact caused by the Covid-19 pandemic.
This National Budget must provide solid relief programmes and substantial spending to stimulate the economy and livelihood of the people. The Budget 2021 must then be reviewed periodically given the unprecedented global changes happening all around us.” “The Government has to focus on protecting jobs and businesses through a more effective wage subsidy programme and moratorium extension amongst other relief support.
The moratorium should be extended till at least June 2021 as the tourism industry has been crippled and are unable to repay loans. Many businesses and individuals will suffer and will probably be declared bankrupt without a moratorium extension. The Government has to make firm decisions and instruct the banks and other finance and leasing companies to extend the moratorium period to help the economy as a whole.”
“The current measures rolled out to provide temporary relief such as the Penjana Tourism Financing (PTF) and related facilities are not effective as prudent SMEs are cautious on future repayments during this period of uncertainty,” said Tan.