Tourism has now become one of the key activities in Malaysia. It has been earmarked to play
an important role in the socio-economic development of the country. The Government has actively
promoted both domestic and international tourism. After reviewing the tourism development of
Malaysia under the government economic plans and policies we can conclude that Malaysia is taking
interest in tourism development and made plans and policies in favour of tourism development and
give important place to tourism in the overall development of the country. Government of Malaysia
took several steps time to time for the development of tourism industry. Many national tourism
policies are drafted, committees are formed and actions plans are adopted in this regard. The
government adopts and formulates various laws and regulations to ensure sustainable tourism
development as well as implement necessary policies. A number of travel and tourism organizations
(Government and Private both) are formed and approved, which cooperate and helped the tourism
industry in growing and development. Tourism development is one of the key element for each
development plans in Malaysia. Government has been giving special emphasize on the tourism sector during the each plan period. The rising significance of tourism in terms of its arrivals and receipts has
motivated the government to increase its budget allocation in its five-year development programs. The
tourism industry is having good potential to help alleviate the deficit in the services account of
external trade. We found that tourism sector in Malaysia is very organized. The policies are clearly
drafted; hence all the stakeholders in the sector operate complimenting each other.