KUALA LUMPUR: Theme park operators have appealed to the government to impose a moratorium of up to two years on all new taxes, levies and licence fee increases affecting the industry.
Malaysian Association of Themepark & Family Attractions (MATFA) founding president Tan Sri Richard Koh said prospective investors looking to build in Malaysia are increasingly deterred by rising costs, bureaucratic red tape, new taxes and regulatory hurdles.
He added that the lack of meaningful consultation with industry players runs counter to efforts to ensure the success of Visit Malaysia Year 2026 (VMY2026).
“Many are confused even as VMY2026 draws near. Businesses, including MATFA members, are grappling with a series of compounding challenges,” he said in a statement.
“We want to express our deep concern over the escalating pressures placed on Malaysian businesses.”
Koh said that over the past 18 months, some local councils had abruptly reclassified family-centric attractions as “entertainment” venues, placing them in the same category as nightclubs, casinos and gambling premises.
“This reclassification has resulted in exorbitant entertainment licence fees, including the maximum 25% entertainment tax, which was never intended for children’s playlands or family recreation businesses.
“This measure is unreasonable, inappropriate and morally unjustifiable,” he said.
He added that the requirement for businesses to hire architects and produce new drawings annually amounts to a hidden tax disguised as compliance.
“It adds no value to safety or governance, yet it drains precious resources from businesses that are already struggling to survive.
“If current policies continue unchecked, Malaysia will inevitably face widespread SME closures, massive job losses and empty malls and commercial districts,” he warned.
Koh also urged the government to scrap or suspend the new 8% tax on shopping mall rental and the 25% entertainment tax, saying they create a double financial burden on operators.
“Retail operators are committed to contributing to tourism growth, job creation and community well-being. But they cannot continue doing so if government policies keep shifting the goalposts and draining resources through unpredictable taxes and excessive fees,” he said.
He warned that without immediate corrective action, Malaysia risks widespread business closures, rising unemployment and a weakened tourism ecosystem.
“MATFA stands ready to engage constructively with the government to safeguard the future of the industry and ensure Malaysia remains a vibrant, family-friendly destination for all,” he said.
