Developing small and medium-sized tourism enterprises (TSMEs) : the Malaysian experience

This chapter evaluates the Malaysian government policies, as manifested in various economic plans and the recently unveiled 12 Entry Point Projects (EPPs) under the Economic Transformation Program (ETP), in developing the tourism sector, in general, and the TSMEs, in particular. While drawing from a recently conducted survey of Malaysian TSMEs, it is evident that low entry barriers, continuous government assistance programs and incentives have helped TSMEs that adopt such a support mechanism. The chapter contends that as the tourism industry in Malaysia is dominated by TSMEs, more concerted and directed efforts are required to exploit the untapped tourism potential of the country. Further, there is need to further study the internal as well as the external factors that influence the development and performance of TSMEs in Malaysia.