MALAYSIAN Association of Theme Parks and Family Attractions (Matfa) has expressed disappointment that Budget 2027 has failed to address the industry's long-standing call to abolish the colonial-era Entertainment Duty Act 1953, leaving operators now without the much-needed policy support for growth.
Its president Tan Sri Richard Koh said the industry was only seeking a fairer operating environment, rather than subsidies or special financial assistance, to help operators manage rising costs and continue investing in attractions, safety standards and visitor experiences.
"Despite our repeated appeals, the issue of the entertainment duty has not been addressed.
"This has placed an additional burden on operators of family attraction at a time when operating costs are rising," he said.
However, Koh said the association remained hopeful that the Government would continue to engage with industry representatives and finally repeal a law that was enacted before Malaysia's independence.
"The current Act was originally designed to tax colonial-era adult vices, but it is still now being used to penalise healthy, family-friendly recreational activities," he said.
Matfa, he said, would appeal to the Finance Ministry for a permanent solution and hoped that the Government would seriously reconsider it.
Koh also expressed hope that the Government would retain the RM1,000 income tax relief for domestic tourism announced during Budget 2026 as part of Visit Malaysia 2026.
"The industry needs a more supportive policy environment to encourage reinvestment, improve facilities and maintain affordable admission prices for Malaysian families.
"Every additional cost puts pressure on operators, and ultimately may affect ticket prices, investment decisions and the ability to upgrade attractions," he added.
Under the record RM510bil Budget 2027, rebates will be given to organisers of festivals and events that attract tourists with a capacity of at least 10,000 people.
And more than RM130mil were also allocated to support the local film, music and creative content sectors in the Federal Territories, with tickets fully exempted from entertainment duty
starting in 2027.
However, both these incentives have no positive impact on Matfa members and its patrons.
