KUALA LUMPUR: The Malaysian Association of Theme Parks & Family Attractions (MATFA) has welcomed the pro-tourism measures introduced in Budget 2026, but urged the government to urgently address the long-overdue issue - the Entertainment Duty Act 1953.
Its president Tan Sri Richard Koh said 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 would help stimulate domestic tourism, and encourage local spending.
However, he said that the full benefits of Budget 2026 would not be realised unless a key policy relic - the Entertainment Duty Act - was urgently reviewed and repealed for the benefit of industry players in general, and Malaysian families as a whole.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 ticket prices and make recreational experiences 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.
Koh noted that operators of family-focused theme parks and playlands are unfairly burdened by this outdated tax, which forces ticket prices up - effectively pricing out B40 families who need affordable recreation the most.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 activities, he stressed, should not be considered a luxury, but a fundamental part of childhood development, family bonding, and community wellbeing.
“Without reform, Malaysia risks excluding thousands of families from the simple joy of having a day out at a theme park, or children’s playland. Having said that, MATFA fully supports the spirit of Budget 2026, which is progressive and people-focused,“ he said.
Koh added that Malaysia’s National Tourism Policy 2020-2030 and Visit Malaysia 2026 (VM2026,) which focuses on affordability and inclusivity, aiming for 26 million tourists and RM120 billion in receipts, but grapples with outdated regulations like the Entertainment Duty Act.
Malaysia and Singapore, as neighbouring Southeast Asian hubs, both prioritise tourism as a key economic driver, with family-friendly attractions like theme parks playing a central role.
“Take for example Singapore’s policy which emphasises on high-quality, premium experiences with heavy investments in infrastructure and incentives for innovation. This year alone they set a target of 17–18.5 million international visitors and S$29-30.5 billion in receipts,“ he said.
Koh said, abolishing the Entertainment Duty Act stands to benefit many B40 families as they will find local recreation more affordable during Visit Malaysia 2026.
“This will strengthen the very inclusivity Budget 2026 aims to promote in the first place,” he said.
He urged policymakers to engage in dialogue with industry stakeholders and communities to modernise this outdated regulatory framework.
“Let us work together to build a tourism landscape where no Malaysian family is left behind,“ he added. - Bernama
