Malaysia boosts tourism connectivity, infrastructure in 2027 budget

 

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.