KUALA LUMPUR: Themepark operators are pleading for help from the government as the sector is at risk of losing its competitive edge over its regional peers, claims the Malaysian Association of Theme Parks and Family Attractions (MATFA).
Its president Tan Sri Richard Koh said operators in Thailand, Singapore and Indonesia have the advantage during this challenging period with the backing of their respective governments.
"They (other countries) have moved ahead with the support from their governments. "In Thailand and Singapore, there's no entertainment tax being imposed on themeparks as they're considered family recreational places. There are only sin tax for gambling outlets, bars, and nightclubs. "Even in Indonesia, the authorities have reviewed its system. They have one tax rate for the whole country unlike here where there are different rates being imposed by each state.
"For arcades, operators there need only to apply for one licence for the whole premises. Here, we need to have a licence for each machine," he said during the MATFA annual general meeting in Kuala Lumpur on April 24, 2026.
Koh said MATFA understood the Government’s fiscal needs and challenges during this challenging time but the obstacles facing the industry players should not be overlooked.
"The ongoing tensions in the middle east have continued to drive up our operational costs. "At the same time, consumers are tightening their budget, focusing only on essential items. As a result, our industry is experiencing a softer demand and increasing pressure on the margins.
"On top of this, we also face new cost burdens under the SST framework including the 6% tax on food and beverages and another 6% on in-park revenue and rentals."
However, Koh added that the issue was not all about taxation. "It is also about how the industry can sustain its appeal, remain competitive and be on par with our regional peers.
"I humbly request to the Government to amend the outdated Entertainment Duty Act 1953 as it places a heavy burden on the industry," he said.
Koh pointed out that the Act was written 70 years ago as a “sin tax” for gambling, bars, and nightclubs. Today, the same Act also applies for themeparks, children’s playlands, waterparks, and swimming complexes. "MATFA is here to provide recreational activities and a place for family bonding," he said.
Koh thanked the government for providing the RM1,000 tax relief for local travel, including entrance fees to attractions and domestic tour packages as part of Visit Malaysia Year 2026. "However, industry players need stability, not a short-term solution.
"If we want Visit Malaysia 2026 to succeed, the government’s policy must support tourism, not penalise it."
Koh said MATFA has also formally written to , Housing & Local Government minister Nga Kor Ming and Selangor mentri besar Datuk Seri Amirudin Shari regarding the sharp increase in licensing fees for playland operators.
"The hike from RM500 to RM6,390 represents a 1,178% jump. "Such an increase will crush smaller operators and result in slow industry growth," he said.
