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Malaysian hotels may raise prices due to upcoming SST increase

November 7, 2023 Malaysia Industry Updates

Christina Toh, the president of the Malaysian Association of Hotels (MAH), reportedly told Channel News Asia that hotels in Malaysia would increase accommodation rates by thirty percent due to an anticipated increase in the Sales and Services Tax (SST). All other things being equal, the SST is predicted to increase from 6% to 8% in the next year.

Toh said that, whatever hotels do, the impact will be felt across the sector and is anticipated to affect room pricing. She added that operating costs are expected to rise due to integrated supply chains, despite the budget announcement stating that the SST would not apply to certain categories.

On October 23, the Singapore dollar surpassed the 3.5 mark in relation to the Malaysian ringgit. Travelers are considering other accommodations, despite experts’ predictions that the price increase would not significantly impact foreign travel.