In order to encourage both local and international tourism industry investments and provide financial support to tourism players, the Malaysia Tourism Council (MTC) is lobbying to set up a dedicated tourism related bank in Malaysia to support them and compete regional and internationally.

The idea was first mooted at the 2020 Malaysia Tourism Gold Summit held in November 2020, President Uzaidi Udanis said.

He said that a bank needed to address the current weaknesses in the bank system, in which loans for moveable assets and recreational equipment as well as loans to buy tour vehicles were difficult to obtain.

He said a Tourism Bank could also facilitate payment portal systems for the industry given the pandemic's acceleration of digitalisation of tourism products and services.

The council now prepares a comprehensive proposal for the establishment of a tourism banking bank, which amongst other things will provide loans for industrial players, which is submitted to the Ministry of Tourism, Arts and Culture Malaysia.

K Thangavelu, managing director at Grandlotus Travel Agencies, agreed that a dedicated bank for tourism players was needed as such a bank would understand the needs of sector players, and the strengths and weaknesses of the industry. Noting how the tourism industry was among the top GDP contributors to the country pre-pandemic, he said that “it is worth investing in and developing this high-growth sector”.

Raaj Navaratnaa, general manager, New Asia Holiday Tours & Travel, opined that the tourism bank should also provide loans to encourage innovation and digitalisation in the tourism industry. He said: “The bank should assist players to compete on a level-playing field with international players once the borders reopen. It should tailor-make its products and offerings to meet the future needs of industry players.”