Malaysia
has allocated 935 million ringgit (US$222 million) for tourism and culture in
2027, with measures to improve international connectivity, upgrade tourism
facilities and support events as the Visit Malaysia campaign continues into
next year.
Prime
minister Anwar Ibrahim outlined the allocation when tabling Budget 2027 in
parliament on October 9.
The
International and Charter Flight Matching Grant will support new direct flight
routes from China, India, Central Asia and Europe. The grant will also cover
cruise ships, ferries and tour buses bringing international tourists to
Malaysia.
Planned
tourism facility upgrades include jetty infrastructure and heritage sites with
potential for UNESCO recognition, including Danum Valley in Sabah, Lembah
Bujang in Kedah and Taman Negara in Pahang. Grants will also be available to
industry players organising and promoting tourism events.
Separately,
the government and Malaysia Airports Holdings will provide 1.1 billion ringgit
to upgrade roads in port areas and at airports in Kota Kinabalu, Miri, Tawau,
Sandakan and Penang, as well as short take-off and landing facilities in Long
Banga and Ba’Kelalan, Sarawak.
Other
measures include raising the duty-free purchase limit for visitors to Langkawi
and Labuan to 10,000 ringgit, subject to a minimum stay of 48 hours. More
products made in Langkawi will be exempt from import duty, while QR payment
facilities will be expanded to 15 locations, including resort islands.
Rebates
will be provided to organisers of events at venues with a capacity for at least
10,000 spectators. Tax incentives for incentive travel, international
conferences and trade exhibitions will be extended until the year of assessment
2030.
The
budget also provides for a cultural festival in conjunction with the 2027 SEA
Games and support for heritage practitioners working in handicrafts, weaving
and batik. Separately, the Ecological Fiscal Transfer fund will increase to 270
million ringgit to support conservation, community-based economic activities
and ecotourism.
The
budget’s emphasis on connectivity also drew a response from Trip.com Malaysia,
which said improved access would need to be matched by destination experiences
and easier navigation.
Stephane
Thong, the platform’s general manager, said travel decisions were increasingly
being made online before departure.
“A
destination with strong connectivity alongside diverse attractions and
experiences, while being easy to navigate and explore, has a real advantage,
whatever its size,” he said.
Industry
leaders said the allocation should deliver measurable economic returns rather
than focus solely on visitor numbers.
Nigel
Wong, president of the Malaysian Association of Tour and Travel Agents, called
for targeted international promotion and market diversification to attract
higher-spending visitors who stay longer. He also urged greater support for
small and medium-sized tourism operators through digitalisation, AI adoption,
product development and skills training.
“The
government should prioritise tourism infrastructure, connectivity and
destination development, with clear key performance indicators to measure
returns on public investment. Every ringgit spent should generate economic
benefits that flow down to local communities, businesses and workers,” Wong
said.
Sri
Ganesh Michiel, president of the Malaysian Tourism Federation and national
president of the Malaysia Budget & Business Hotel Association, said grants
and promotional opportunities should be accessible to smaller operators. He
also called for stronger enforcement against unlicensed short-term rental
accommodation and measures to address rising operating costs for licensed
tourism businesses.
“Malaysia
does not simply need more tourists. We need a stronger, better-regulated and
sustainable tourism ecosystem that creates real economic value for the entire
industry,” he said.
-TTG Asia.
