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The government has instead decided to increase substantially passport fees to curb numbers of Malaysians travelling abroad.

Fees for international passports and restricted passports (for travel to Singapore) are now between 100-150 per cent higher. The fee for a 32-page international passport has been raised from RM145 to RM300. A 64-page document now costs RM600, from RM265, making the Malaysian international passport one of the most expensive in the world.

The fee for restricted passports has been raised from RM60 to RM150 (for five years) at a renewal fee of RM30 a year.

Finance Minister Datuk Seri Anwar Ibrahim, during the presentation of the Budget, pointed out that 23 million Malaysians travelled abroad last year. "Although our policy is liberal, this figure is significantly large and has resulted in an outflow of RM6.5 billion," he said.

Datuk Seri Anwar advised Malaysians to visit instead various local tourist spots.

In a move to promote the tourism industry and to enhance Malaysia as a shopping paradise, the government has reduced or abolished import duty on various items.

Leather products, shoes, stockings, handbags, belts, neckties, scarves, suits and jackets will be cheaper. The import duties, now between 20 per cent and 30 per cent, will be lowered to 15 per cent with immediate effect.

Import duties on such items as perfumes, watches, pens, semi-precious stones, cameras, radios, paintings, sculptures and decorative flowers have already been reduced or abolished.

Efforts to promote domestic tourism continue with an allocation of RM19 million for the construction of medium-cost hotels and to improve facilities at government resthouses. In addition, a sum of RM19 million has been budgeted to provide tourist facilities throughout the country including the cleaning of beaches, the provision of basic facilities at tourist spots and the provision of camp sites.