The Malaysian Tourism Federation (MTF) extends its heartfelt appreciation to the Government of Malaysia and Prime Minister YAB Dato’ Seri Anwar Ibrahim for prioritising the tourism industry through the 2026 National Budget, in conjunction with Visit Malaysia Year (VMY) 2026. The Government’s decision to introduce attractive tax rebates of up to RM1,000 for Malaysians on entry fees to local tourist attractions and cultural programmes reflects a strong commitment to encourage domestic travel and strengthen national tourism. MTF also welcomes the announcement that tour operators will be granted a 100% income tax exemption on the increased value of income derived from tour packages to Malaysia, along with tax incentives for companies, organization or Association organising international-level conferences, exhibitions, and incentive events in the country. MTF also lauds the Government’s initiative to grant tax deductions of up to RM500,000 for qualified tourism operators who renovate or upgrade their business premises. This incentive will encourage continuous improvement in service quality, facilities, and overall visitor experience, ensuring Malaysia’s tourism infrastructure remains competitive and appealing to both domestic and international travellers.
Meanwhile, The Malaysia Budget & Business Hotel Association (MYBHA®) extends its sincere appreciation to the Government of Malaysia for the Budget 2026 allocation that supports the growth and revitalization of the tourism and hospitality sector in preparation for Visit Malaysia Year 2026 (VMY2026). MYBHA especially welcomes the tax incentive for tourism project operators who carry out renovations, upgrades, and improvements to their business premises, allowing for tax deductions on qualifying expenditures of up to RM500,000.00. This initiative is timely and will greatly assist hotel and resort operators in enhancing the quality, safety, and appeal of their properties ensuring that Malaysia continues to offer world-class hospitality experiences to both domestic and international visitors. MYBHA also commends the Government’s initiative to encourage Malaysians to travel domestically through the special personal income tax relief of up to RM1,000 for expenses related to entrance fees at local tourist attractions and participation in cultural programmes. This move is an excellent step toward stimulating domestic tourism spending and supporting local tourism operators.
The Penang Hindu Association (PHA) as a Non-Government Organisation dealing mostly with the B40 community, welcomes the key strategies and schemes in the 2026 budget to help the poor and the deprived sectors of our society. In addition to these strategies outlined in the budget, PHA would like to appeal to the honourable Prime Minister to look into the following proposals when the 2026 budget is discussed in the Parliament.
Firstly, a social security scheme for workers in the unorganized sector needs to be considered. The businesses in this sector are usually not registered with the government and there is a high chance for labour protection laws to be overlooked. These sectors are often small-scale enterprises or family businesses that employ cheap labour in activities like street vending, vegetable farming and doing odd jobs. As this sector is characterized by low wages, unstable employment and a lack of social security protection, PHA appeals to the Government to consider setting up a social security scheme for these workers to help them save for their retirement and to receive a fixed monthly pension.
Secondly, the government needs to consider subsidising the installation of rooftop solar panels for the B40 group. Many of them find it difficult to pay their utility bills, even with the subsidy provided by TNB, and have appealed to PHA to help them settle their electricity bills as the electricity to their homes were disconnected due to unpaid bills. Since the solar panels provide carbon-free electricity without the need to pay electricity bills, the subsidy to install the solar panels would help ease the burden for the B40 families.
Thirdly, more affordable senior citizen homes need to be built to manage the growing number of senior citizens who are left to fend on their own. The homes could offer not only a suitable living space but also promote an engaging community that enhances their quality of life.
Finally, PHA appeals to the government to include in the 2026 budget the provision of free school bus transportation for B40 students. This is to help the B40 families to overcome the burden of having to face a hefty fare increase of up to 150% per student in school transport fares” says its president Dato Murugiah in a press statement.
Finally, the Malaysian Association of Theme Parks & Family Attractions (MATFA) welcomed the pro-tourism measures introduced in Budget 2026, but reminded the government to urgently address the long-overdue issue of the Entertainment Duty Act 1953. The government’s initiatives, particularly the RM1,000 personal income tax rebate for domestic travel and the income tax exemption for upgrades of park facilities will stimulate domestic tourism, and encourage local spending. However, MATFA president Tan Sri Richard Koh cautioned that the full benefits of Budget 2026 would not be realised unless a key policy relic — the Entertainment Duty Act — is urgently reviewed and repealed for the benefit of industry players in general, and Malaysian families as a whole.
“This long-overdue reform will enable us (operators) to lower the ticket prices and make recreational experiences more accessible to all families — especially those who need them most.
“The Entertainment Duty Act 1953 is over 70 years old and completely out of touch with today’s social and economic realities,” said Koh.
“Operators of family-focused theme parks and playlands are unfairly burdened by this outdated tax, which forces ticket prices up —effectively pricing out B40 families who need affordable recreation the most.”
Recreational access, MATFA stressed, should not be considered a luxury, but a fundamental part of childhood development, family bonding, and community wellbeing.
The association argues that without reform, Malaysia risks excluding thousands of families from the simple joy of a day out at a theme park or children’s playland.
“We fully support the spirit of Budget 2026 — it’s progressive and people-focused.
“But without abolishing this obsolete duty, many B40 families will still find local recreation unaffordable.
“That undermines the very inclusivity the budget aims to promote,” he said.
MATFA is calling for: • Abolition of the Entertainment Duty Act 1953 for family-oriented recreational facilities; • Engagement with industry stakeholders to craft modern, inclusive tourism policies and • Support for equitable access to recreation, particularly for low
Press statement by Tan Sri Richard Koh, President, Malaysian Association of Theme Parks & Family Attractions (MATFA)