12/05/2025

BIZ & FINANCE MONDAY | MAY 12, 2025

/thesuntelegram FOLLOW / Malaysian Paper

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Domestic tourism industry still grappling with talent shortage

KUALA LUMPUR: The domestic tourism and hospitality sector continues to face its biggest hurdle – acute shortage of skilled workers – as many employees left the industry during the Covid-19 pandemic, either due to job losses or a shift to more stable sectors. As borders reopened and travel demand surged, the industry has struggled to keep pace with the need for trained, service-oriented personnel. The talent drain has impacted day to-day operations and affected the overall quality of guest experiences, which is critical in maintaining Malaysia’s competitiveness as a preferred tourism destination. Hilton Hotels marketing and communications director, national marketing office, Eugene Oelofse said rebuilding this skilled workforce has proven difficult, particularly as the sector competes with other in dustries offering better job security, o Covid-19 pandemic induced loss of skilled workers has impacted daily operations and overall quality of guest experiences till this day Ű BY JOHN GILBERT sunbiz@thesundaily.com

There are many instruments which tax payers do not usually bring for stamp ing and could be exposed under the new provisions in the Stamp Act, such as employment contracts, engagement letters for services, lease and tenancy agreements, and instruments between related parties for provision of financ ing or services. Instruments of transac tions with third parties where litigation is not expected are usually not stamped. In preparation for the self assessment regime which comes into effect from Jan 1, 2026, the IRB’s visits are an initiative to educate taxpayers on their responsibilities and obli gations, clarify legal provisions, and to encourage voluntary compliance with the new provisions in the Stamp Act. However, we understand from the marketplace that IRB, during its visits key issues, from infrastructure to reducing traffic. “Investing in and developing our workforce is important to keep up with industry growth. We are facilitating the adoption of digital platforms by local operators to provide them with the necessary exposure, and we are placing a crucial emphasis on sustainability practices to ensure the preservation of this remarkable natural destination for future generations,” Oelofse said. Commenting on the domestic tourism segments experiencing the strongest growth, Traveloka president Caesar Indra cited findings from the company’s white paper, Travel Redefined: Understanding and Catering to the Diverse Needs of Apac Travellers. He noted that for Malaysian travellers, the primary motivation remains rest and relaxation, with 31% prioritising leisure-focused expe riences. This response is followed by 20% seeking visits to tourist attractions and 13% expressing a preference for nature-based destinations. “Our data shows strong demand for natural destinations such as mountain ranges, beaches and coastal areas, followed by desti nations rich in historical and cultural experiences. These trends reflect a deepening desire among Malaysians to reconnect with nature and rediscover the country’s heritage, a shift that has strengthened post pandemic,” he said. In the first quarter of 2025, Traveloka data shows that Kedah (Langkawi), Penang and Sabah remain the top domestic desti nations. Interest in emerging cities such as Kota Bahru and Alor Setar is also growing, with Alor Setar recording the highest number of flight

higher wages, or more flexible working conditions. He said efforts to attract new talent through upskilling pro grammes, incentives, and education industry partnerships are ongoing but take time to yield results. “Without a strong pipeline of skilled professionals, the industry’s recovery risks being undermined, especially as Malaysia gears up to welcome increased tourist arrivals in the coming years,” Oelofse told SunBiz . Asked about the outlook for domestic tourism during Visit Malaysia Year 2026, he expressed confidence that the current tourism boom will persist, particularly in the near to medium term. “Firstly, Malaysia has so much diversity in its travel destinations, cultural heritage and experiences; we are really spoiled for choice. The number of local options available, set against global price increases and external pressures, will surely keep the domestic appeal very high. “As local cities receive more visitors, we will need to address some

Indra says the primary motivation for Malaysian travellers remains rest and relaxation.

educate taxpayers in understanding the complex and archaic provisions in the Stamp Act 1949. The English lan guage used in this legislation is not familiar to the current generation. This leads to interpretational difficulties which can result in errors in classifying the type of instruments. A wrong classification of the instrument will lead to the incorrect payment of stamp duty. Developing an FAQ dealing with many potential common scenarios that are of concern to taxpayers will provide answers to the questions troubling taxpayers. This can be collected from taxpayers, tax con sultants, industry players, and from the IRB’s experience in processing stamp duty applications. This article is contributed by Thannees Tax Consulting Services Sdn Bhd managing director SM Thanneermalai (www.thannees.com). year – while domestic tourism expenditure surged by 21.9% to RM29 billion, reflecting a strong rebound in travel and consumer spending, according to data from the Department of Statistics Malaysia. To sustain this momentum, the tourism sector must remain adap table to evolving traveller ex pectations. According to Traveloka, six strategic priorities will be key to sustaining tourism growth: per sonalising travel experiences through artificial intelligence and data analytics, encouraging travel to lesser-known destinations via dynamic pricing, and strengthening data security and transparency. Additional focus areas include making sustainable travel options more accessible and competitively priced, offering inclusive payment solutions such as mobile wallets and cash-friendly options, and curating locally relevant packages that highlight Malaysia’s culture, natural beauty and safety.

to the taxpayers, is highlighting that if the instruments are not stamped, the taxpayers will be penalised for the non-stamping of such instruments. This does not align with the existing Stamp Act provisions and the objectives of the recently issued Stamp Duty Audit Framework, where the primary objective is intended to promote voluntary compliance. As the new provisions under the Stamp Act are set to take effect on Jan 1, 2026, it would seem reasonable for the IRB to apply the new stamping requirements only to instruments executed from that date onwards. Applying these provisions retro spectively to earlier instruments and imposing late stamping penalties may not align with the intended spirit of the law. The way forward Compliance with the stamp duty legis lation will be enhanced through efforts that have to be initiated by the IRB to bookings, followed by Kota Bahru, Langkawi and Penang. “At Traveloka, we see this shift as an exciting opportunity to support the diversification of Malaysia’s domestic tourism landscape. “As travellers increasingly seek both well-known and emerging destinations, our technology-driven platform is uniquely positioned to meet these evolving preferences, providing seamless access, tailored recommendations, and attractive deals to empower Malaysians to explore more of their country,” Indra said. Asked how he expected the domestic tourism boom to continue, he said Traveloka believes it will continue to thrive in Malaysia. However, sustaining this mo mentum requires a deliberate and data-driven approach, Indra said, adding that travellers’ preferences are evolving rapidly and tourism stakeholders must adapt accordingly. In fourth-quarter 2024, Malaysia recorded 66.8 million domestic visitors – a 21.4% increase year-on

Oelofse says rebuilding a skilled workforce has proven difficult.

Clearing up uncertainties about stamp duty THE Stamp Office of the Inland Revenue Board (IRB) has been visiting taxpayers to review their compliance with the stamp duty legislation. In this connection, they have been reviewing all written agree ments to determine whether the agreements should have been involving the transfer of real property, transfer of shares, documents that need to be presented during litigation in a court of law, documents that need to be produced when applying for stamp duty exemptions, documents that need to be assessment or additional assessment. Common instruments that will be affected

presented to financial institutions in the course of applying for loans, etc. One must carefully determine whether a stamped document is needed to complete the transaction. From Jan 1, 2026, the self

stamped. If they have not been stamped, the IRB is advising the taxpayers to have them stamped together with paying a late stamping penalty.

assessment regime will apply to stamp duty in stages. With this change, it becomes compulsory for instruments to be stamped. If that is not done, new provisions in the Stamp Act have been added effective from Jan 1, 2026, to allow the director general in that year or within five years after the date the duty was paid or would have been paid to raise an

There is confusion as to whether the Stamp Act 1949 forces taxpayers to have their instruments stamped. The law as it stands does not compel taxpayers to have all their instruments stamped. However, certain transactions cannot be undertaken without stamped documents. Examples of such transactions will be transactions