KUALA LUMPUR: The special individual income tax relief of up to RM1,000, as announced under Budget 2026, is part of the government’s efforts to encourage Malaysians to travel within the country in conjunction with Visit Malaysia 2026 (VM2026).
Prime Minister Datuk Seri Anwar Ibrahim said that not only would it invigorate the domestic tourism sector, but also stimulate local economic activity
At the same time, he said, the initiative can help rebalance the trend of outbound tourism, which has increased following the strengthening of the ringgit.
“Due to the strengthening of the ringgit, there are also side effects, as more Malaysians are travelling overseas to places like Thailand, Japan and Indonesia. As such, we are introducing additional measures to boost domestic tourism by providing a tax exemption of up to RM1,000 for spending within the country,” he said during the Minister’s Question Time in the Dewan Rakyat today.
He was replying to a supplementary question from Jimmy Puah Wee Tse (PH-Tebrau) regarding the recent influx of nearly 200,000 Malaysians to Thailand and spending around RM50 million there recently.
However, Anwar, also the Finance Minister, expressed his concern over the high cost of domestic tourism, including the cost of accommodation and food at popular destinations like Langkawi.
He said the matter is being reviewed following discussions between the Second Finance Minister and Kedah Menteri Besar to seek ways to address the issue.
“When a comparison is made between Langkawi and Phuket, Thailand, the beauty of Langkawi clearly stands out because it is cleaner and more natural, but the problem is its high cost, and we must look into this,” he said.
On VM2026 promotional efforts, the Prime Minister said 70 per cent of it will be implemented digitally, and the remaining 30 per cent conventionally.
The Ministry of Tourism, Arts and Culture (MOTAC) has also held engagement sessions with industry players, including airline companies, to increase flight frequency, he added.
Meanwhile, Anwar reaffirmed the government’s commitment to making Malaysia a major Islamic tourism and economic hub, in line with the global recognition of the country’s strength in the fields of syariah-compliant finance and tourism.
“Six Islamic countries have proposed that Malaysia take the lead in efforts to enhance Islamic financial programmes, instruments, and the economy, and integrate them with tourism.
“I agree that this matter should be reviewed, and I will ask MOTAC to give priority to the development of more Muslim-friendly tourism programmes, namely more family-friendly and free from elements of haram (prohibited),” he said.
He said that several Islamic countries, such as Turkiye and Qatar, had also implemented Islamic tourism programmes specifically to attract more tourists. – Bernama
