Visitors from India and 22 other countries will now be able to get visas on arrival at the international airports in Malaysia from September 1.
The tourists will have to pay 100 ringgit for the single entry, which will be valid for one month.
This move aimed at providing a boost to the 'Visit Malaysia Year 2007' involves only those arriving at international airports, home affairs minister Radzi Sheikh Ahmad said.
Tourists entering the country through other checkpoints would, however, have to apply for their visas in their home countries.
"The idea is to encourage them to come straight to Malaysia, to spend their money here first, instead of neighbouring countries," Radzi was quoted by the New Straits Times as saying.
"They can stay for one month and if they want to continue their stay, they will have to leave Malaysia and re-enter by paying another RM100," Radzi said.
The arrangement will continue throughout next year and "for as long as it seems fit," he said.
Referring to a new ruling that employers and agents who were late in collecting their foreign workers would be fined, Radzi said the ministry would start enforcing this in "one or two weeks' time". Such employers will be fined RM10 per hour.
This could be good news to hundreds of Indian workers who arrive in Malaysia only to find that their agent or employer not there at the airport to pick them up.
Employers are to collect their foreign workers within five hours upon arrival or pay the fine.