National-level reforms are urgently needed to address persistent challenges in Malaysia’s tourism industry, especially in the hospitality and food services sectors, said Penang State Executive Councillor for Tourism Wong Hon Wai.

Wong pointed out that labour shortages—exacerbated since the COVID-19 pandemic—continue to strain operations across the country. “This is not a Penang-specific issue,” he stressed. “Manpower policies, including foreign worker quotas and visa processing, fall under the Federal Government’s jurisdiction and require structural reform, especially from the Human Resources Ministry.”

Wong urged the development of local talent through enhanced Technical and Vocational Education and Training (TVET), stronger partnerships with educational institutions, and improved in-house training to build a more resilient workforce. He said Penang is committed to offering local support, but a sustainable solution requires federal coordination.

Despite the challenges, Penang’s tourism sector remains a vital economic pillar. Hotel room supply has grown significantly, with 13 new hotels adding 2,311 rooms from August 2023 to April 2025—bringing the total to approximately 22,500 rooms. Wong said the expansion is well-timed, especially in emerging tourism hotspots like Balik Pulau and the Prai mainland.

The state also continues to strengthen its role as a MICE (Meetings, Incentives, Conventions, Exhibitions) destination. The upcoming Penang Waterfront Convention Centre (PWCC), slated to open in October 2025, will further boost its appeal for international events. Penang’s growing semiconductor industry is also fuelling demand for premium business accommodations.

Tourism Malaysia data shows Penang welcomed over 8.2 million hotel guests in 2024, up 13.3% from 7.27 million in 2023. Wong said this growth supports the continued expansion of hotel capacity.

However, he warned the hospitality sector must remain agile in the face of rising operational costs and global uncertainties, such as recent U.S. import tariffs. “Innovation, service quality, and strategic adaptation are crucial,” Wong said. “The industry cannot afford to rest on its laurels.”