In the 1999 elections, Datuk Seri Haji Mohd Ali Mohd Rustam competed in the area of Paya Paya and earned a brilliant victory. Recognizing the fact that Melaka is not rich in natural resources, he boosted the state economy through tourism, industrial and construction promotions. The tourism sector is a major sector in the state of Malacca. To enhance the tourism sector of Melaka, Datuk Seri Haji Mohd Ali Rustam launched a visit to Melaka Visit Campaign with Moto "Visiting Melaka Historic Means Visit Malaysia". Datuk Seri Haji Mohd Ali Rustam launched a massive promotional campaign involving collaboration between state government agencies and private parties by holding the Melaka Tourism Festival in Kuala Lumpur, Penang, Johor Baru, Singapore, New Town, South Sumatra, China, United Kingdom and Taiwan. The state's economic development is moving with rapidly and rapidly to improve the quality of life of the people. To ensure that the activities of the Islamic debutters are in progress more effectively, he established the Melaka State Dakwah Trust Fund to accommodate da'wah activities across the state covering assistance to cover the construction of surau, conduct courses, lectures, forums, seminars, workshops and worship camps. Apart from political activity, he also moves to the youth movement at the state, national and international levels. He is a Pioneer Group 'in the Malaysian and Canadian Youth Exchange Plan in 1973. He also attended the "The Rights of the Prisoners of War" conference in Iraq in 1990. In 1986 to 1994 he was appointed Chairman of the Melaka Youth Combination Council (MGBM) and subsequently President of the Malaysian Youth Council (MBM) in 1988 to 1990. In the same year, he was elected Vice President of 'World Assembly of Youth (WAY) and in 1993 was appointed President Way until now. In 1994, he was elected President of the 4B Youth Movement Malaysia.