Malaysia targets tourism revival with Budget 2026 measures

 

The Malaysian Tourism Federation (MTF) has welcomed the federal government’s strong focus on tourism in the 2026 National Budget, presented on October 10 by prime minister and finance minister Anwar Ibrahim, calling it a clear signal of Malaysia’s intent to regain its position as a leading global destination during Visit Malaysia Year 2026 (VMY2026). 

MTF president Sri Ganesh Michiel said in a statement that the government’s introduction of tax rebates of up to 1,000 ringgit (US$237) for Malaysians visiting local attractions and cultural programmes reflected a firm commitment to domestic tourism.  

He also welcomed tax incentives for companies and associations organising international conferences, exhibitions, and incentive events in Malaysia, as well as a 100 per cent income tax exemption on increased income derived from tour packages to the country. 

Ganesh said such support would encourage licensed tourism operators to reinvest in their businesses and align with Malaysia’s goal of delivering high-quality tourism experiences. 

He praised the government’s allocation of more than 700 million ringgit to strengthen the sector, which aims to attract 47 million visitors and generate 329 billion ringgit in revenue during VMY2026. However, he stressed that benefits must be directed only to legitimate, licensed, and tax-compliant operators to prevent unfair competition and revenue loss. 

“By ensuring that only licensed and regulated operators receive these incentives, we uphold the integrity of Malaysia’s tourism ecosystem and ensure that the government’s investment translates directly into sustainable economic returns,” he said. 

MTF also urged federal and state governments to maintain contingency funds to protect tourism development in case of financial shortfalls, ensuring continuity of VMY2026 initiatives. 

“Tourism is dynamic; readiness and adaptability are essential to meet emerging global trends,” Ganesh added. 

He called on Malaysians to act as national ambassadors. “The success of VMY2026 depends on all of us. Let us unite in spirit, avoid negative publicity or actions that may harm the country’s image, and show the world the warmth, diversity, and unity that define Malaysia,” he said. 

The Malaysia Budget & Business Hotel Association (MyBHA) echoed similar sentiments but urged the government to extend the 1,000 ringgit personal income tax relief to include accommodation at licensed hotels and resorts. 

“This move would further promote responsible domestic travel, directly benefiting legitimate operators and reinforcing the importance of staying in licensed and regulated establishments that comply with safety and quality standards,” MyBHA said in its statement. 

MyBHA also reiterated the need for enforcement against unlicensed accommodation providers that distort fair competition and evade taxes. The association welcomed the upcoming regulations on short-term rental accommodation, the revised Tourism Industry Act, and rules for OTAs, describing them as crucial to ensuring “fair competition, consumer protection, and long-term sustainability of Malaysia’s tourism and hospitality sector”.

-TTG Asia.

Malaysian Tourism Federation calls for grants for Visit Malaysia Year 2026

 

KOTA KINABALU 14 JANUARI 2025 Keindahan Pulau Sibuan, Taman Marin Tun Sakaran menjadi tarikan pelancong di Semporna. Pix ihsan Kementerian Pelancongan, Kebudayaan dan Alam Sekitar Sabah

KUALA LUMPUR: The Malaysian Tourism Federation has called on the government to provide grants to industry players, tourism associations, and the media to effectively promote Visit Malaysia Year 2026, ahead of Budget 2026, which will be tabled on Oct 10. 

Its president, Dr Sri Ganesh Michiel, said that providing allocations to upgrade airports, transport systems, tourism facilities, and accessibility in tourist destinations was key to a seamless visitor experience to further attract tourists. 

"The MTF proposes the introduction of a Direct Promotion Grant for registered and licensed tourism operators. This grant would provide much-needed funding and guidance to prepare promotional materials, strengthen branding, and increase visibility in both domestic and international markets," he said. 

"To maximise industry impact, the MTF also calls for special incentives or grants for associations, recognising their role as frontline mobilisers of members. Associations ensure compliance, coordinate collective promotions, and drive nationwide participation in tourism campaigns," he added in a statement today. 

Additionally, he said that a media promotion grant to both traditional and digital outlets would be able to build international awareness of Malaysia's gems. 

The federation's president also said that the existing "Geran Sokongan Sektor Kebudayaan" and the "Geran Sokongan Sektor Pelancongan" cannot stand alone to guarantee industry readiness ahead of Visit Malaysia Year 2026.

He added that allocations for digital exposure and modern marketing were also vital in penetrating the modern market of global travellers. 

The federation further urged the government to take strict enforcement action against illegal and unlicensed providers and prevent revenue leakage by ensuring transparent collection of Tourism Tax at all airports and international entry and exit points. 

He also called on the government to ensure that all tourist contributions are fully channelled back into the tourism ecosystem.

-nst online.

New umbrella body links Malaysia's tourism players

The Newly-Minted Malaysia Tourism Federation aims to become a platform for national and state tourism-related organisations to collaborate on direction-setting and proposing of policies for the industry. Registered on November 18, the federation's president Joshua Peter Tan said its role was to serve as an umbrella body to bring stakeholders together to dialogue on tourism issues. It also hopes to run tourism-related conferences and provide human capital training for the travel trade.

He said: "We also want to work closely with the tourism ministry and state tourism bodies to ensure continued sustainable growth of Malaysia's tourism industry." Tan's immediate task is to recruit members from national and state tourism associations across all segments such as the hotels, travel and tour operators, tourist guides and transport operators. An inaugural meeting is planned for mid-December and there are plans to establish a full-time secretariat. Tan expects the Federation, which will be officially launched in January next year, to eventually be a member of international travel trade associations such as the Pacific Asia Travel Association and the ASEAN Tourism Association.
-TTG Asia.