Kuala lumpur: The Malaysian Association of Theme Parks and 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.
According to BERNAMA News Agency, Koh emphasized that the full benefits of Budget 2026 would not be realized unless a key policy relic - the Entertainment Duty Act - was urgently reviewed and repealed for the benefit of industry players in general, and Malaysian families as a whole. He highlighted the potential for lowering ticket prices and making recreational experiences accessible to all families, particularly those in need. Koh described the Entertainment Duty Act 1953 as outdated and disconnected from current social and economic realities.
Koh noted that operators of family-focused theme parks and playlands are unfairly burdened by this outdated tax, which forces ticket prices up, effectively pricing out B40 families who need affordable recreation the most. He stressed that recreational activities should not be considered a luxury, but a fundamental part of childhood development, family bonding, and community wellbeing.
Without reform, Koh warned that Malaysia risks excluding thousands of families from the simple joy of having a day out at a theme park or children's playland. He expressed MATFA's full support for the spirit of Budget 2026, which he described as progressive and people-focused. Koh added that Malaysia's National Tourism Policy 2020-2030 and Visit Malaysia 2026 (VM2026) focus on affordability and inclusivity, aiming for 26 million tourists and RM120 billion in receipts, but grapple with outdated regulations like the Entertainment Duty Act.
He highlighted the example of Singapore, a neighboring Southeast Asian hub that prioritizes tourism as a key economic driver, with family-friendly attractions like theme parks playing a central role. Koh noted Singapore's emphasis on high-quality, premium experiences with heavy investments in infrastructure and incentives for innovation, setting a target of 17-18.5 million international visitors and S$29-30.5 billion in receipts this year.
Koh concluded by stating that abolishing the Entertainment Duty Act stands to benefit many B40 families as they will find local recreation more affordable during Visit Malaysia 2026. He urged policymakers to engage in dialogue with industry stakeholders and communities to modernize this outdated regulatory framework, aiming to build a tourism landscape where no Malaysian family is left behind.