Langkawi Economic Recovery Action Plan2021-03-14T09:25:29+08:00

MEDIA RELEASE

PLANNING AND IMPLEMENTATION OF LANGKAWI ECONOMIC RECOVERY ACTION PLAN

Langkawi, 31 May 2020 – Langkawi Development Authority (LADA) is currently drafting Langkawi Economic Recovery Action Plan (PTPEL). Its objective is to recover Langkawi’s economy which has been affected due to the spread of COVID-19 pandemic and the imposed cross-border travel ban. The implementation of this plan is based on three (3) main thrusts supported by 10 strategies and 30 action drafts.

The press conference held today was to announce a few preliminary actions approved by LADA Board of Directors on 11 May 2020.

To endorse this Action Plan, LADA will begin the engagement process with Langkawi tourism industry activists which is planned to take place for three months. Subsequent actions related to this matter will be shared from time to time with the involved parties as well as media.

The implementation of this plan is divided into three (3) period categories, spanning the short-term (quick win), medium-term, and long-term actions. The following are a few strategies which have been arranged and implemented:

(1) Strategy 1 – Support for control against the spread of COVID-19

1.1

LADA along with its subsidiaries have contributed food and raw materials preparation, masks, and personal protective equipment (PPE) to frontliners with a budget of RM53,465.00.

1.2

Helping the asnaf (beneficiaries of Zakat aid collected from Muslims) during COVID-19 outbreak through Asnaf Care Programme (Program Asnaf Care) organised by Panorama Langkawi Sdn. Bhd. with a total budget of RM31,000.00.

(2) Strategy 2 – Alleviating the economic effects towards population at risk

2.1

Cash contribution for asnaf via cooperation between Kedah State Zakat Board (Lembaga Zakat Negeri Kedah) and LADA subsidiaries Panorama Langkawi (PLSB) as well as Langkawi Port (LPSB) through the implementation of Ramadhan Fi Qalbi Programme with a total budget of RM66,400.

2.2

The strategy to create income-generating opportunities for Langkawi community has been initiated. LADA prepares a budget of RM500,000.00 aid for entrepreneurs and small businessmen to restart their businesses under the following requirements:

(i)

The maximum amount of aid for each application shall not exceed RM3,000;

(ii)

Applicant must own a valid business license;

(iii)

Applicant is experienced in business for more than two years; and

(iv)

Applicant must own a competent business plan.

(3) Strategy 3 – Opening new economic opportunities

3.1

A few concepts to diversify the economic base of Langkawi will be introduced, including:

(i)

Vegetable cultivation project based on the concept of Contract Farming Programme. LADA along with its subsidiary Panorama Langkawi Sdn. Bhd. will begin a Pilot Project with the preparation of 5-acre land for 10 participants;

(ii)

Marine harvests sale project through wholesale purchase of marine harvests to be sold in Lembah Klang market. The project will be conducted by LADA Eco-Tourism Sdn. Bhd. with Langkawi taxi drivers community;

(iii)

Retail or online local fruits and vegetables sale project. This project will form sales chain and will be conducted by LADA Eco-Tourism Sdn. Bhd. with Night Market Cooperation; and

(iv)

Online platform sale project. LADA will help and encourage entrepreneurs to conduct online sales using platforms such as langkawiruncit.com and other related ones.

(4) Strategy 4 – Rebranding Langkawi as a safe, clean, and sustainable destination

4.1

Introducing Door-to-Door Tourism which fulfils ‘Customised Travel’ tourism service.

(i)

Following the UNWTO recommendation, this service requires holiday destinations to offer packages which are safe for all market segments.

(ii)

Through such package, tourists will be invited starting from their homes to the holiday destination to carry out various activities before being sent back home safe, considering the needs for social distancing and other safety protocols.

4.2

Safety Messaging will also be implemented in effort to make Langkawi as a safe destination.

(i)

LADA with other government agencies in Langkawi including KKM, PDRM, MOTAC, and MPL will launch a public regulation that must be observed by each tourist throughout their stay on the island.

(ii)

This is aimed at convincing tourists that Langkawi is indeed a safe destination. The Public Regulation will be released following MKN guidelines and will be adjusted according to current situation in Langkawi.

(ii)

Product owners who manage to follow the established SOPs will be awarded with ‘green certification’.

(5) Strategy 5 – Promoting Langkawi tourism with focus

5.1

Sales promotion through the launching of Langkawi Great Sales will be held from 1 October 2020 until 31 December 2020.

(i)

This campaign aims to bring back tourists into Langkawi. The sales promotion will offer special discounts to visitors ranging from 10% to 70%.

(ii)

Industry players involved in this campaign are hotels, duty-free shops, tourism products, and self-drive rental cars entrepreneurs.

(6) Strategy 6 – Fiscal steps to reduce the economic impacts on private sectors

6.1

Understanding the economic strains faced by every party, LADA prepares rental/management fees exemption package for tenants of LADA-owned premises.

(i)

This exemption costs RM1,279,194. It will be implemented based on the set requirements which involve premises from the categories of rental houses, business premises, operators under management agreement/management and operations (M&O), as well as commercial land tenants. LADA subsidiary, Panorama Langkawi Sdn. Bhd. also offers a similar package involving a total cost of RM1,198,899.

(ii)

The exemption given lasts throughout MCO period or with maximum limit of only 6-month period.

In conclusion, the Action Plan is prepared by LADA as a continuation to stimulus packages provided by Federal and State Governments in spurring back economic development in Langkawi. Besides that, the planning and implementation of this Action Plan will be refined through consultations which will be held along with tourism industry activists in Langkawi as well as local community representatives.

Corporate Services Unit
Langkawi Development Authority (LADA)

31 May 2020

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LANGKAWI ECONOMIC RECOVERY ACTION PLAN

Planning and Implementation of Langkawi Economic Recovery Action Plan covers:

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CORES
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STRATEGIES
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ACTIONS (DRAFTS)

RENTAL/MANAGEMENT FEES EXEMPTION FOR LADA-OWNED PREMISES

Premises identified as adhering to the fixed regulations will be given rental/management fees exemption throughout MCO + 3 months (or with exemption for a limit of 6 months)

INITIATIVE OF CAPITAL ASSISTANCE TO RESTART BUSINESS

LADA prepares capital assistance initiative worth RM500,000 with the following requirements:

Approval is also subject to other terms which will be determined in the future

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