KUALA LUMPUR: The government has been urged to scrap the colonial-era Entertainment Duty Act in Budget 2027 to allow the family attractions industry the necessary room to grow, attract investment and remain competitive.
The Malaysian Association of Theme Parks and Family Attractions (MATFA) president Tan Sri Richard Koh said the continued imposition of entertainment duty was becoming increasingly difficult to justify as operators faced rising costs for manpower, electricity, maintenance, safety compliance and other essential operations.
"The Act was passed before Merdeka and it's still being used after 73 years, burdening Malaysian families at concert halls, theme parks, and family attractions.
"Our neighbours in the region have amended or repealed their taxes to ensure operators remain competitive and reinvest profit gains back into the industry," he said.
Koh added that if the Entertainment Act was not repealed, Malaysia would find it difficult to justify its position as a leading entertainment hub.
He said abolishing the duty would not only ease pressure on operators but would attract big entertainment events with international artists here.
"This will be translated into billions of ringgit in revenues for hotels, malls and food retailers. This will then benefit the government too via the Sales and Services tax,” he said.
“Family attractions are no longer simply places for entertainment. They contribute to tourism, employment, investment and the wellbeing of families. The tax framework should reflect this changing landscape,” he added.
Koh said every ringgit that operators saved could be channelled back into improving the facilities, introducing new attractions and enhancing the overall visitor experience.
“This is not about asking for subsidies. We are seeking a removal of an outdated barrier that makes it more difficult for the industry to compete and grow,” he said.
Koh added that keeping family recreation affordable was particularly important at a time when households were facing higher living and operating costs.
“Families should be able to enjoy quality recreational activities without having to bear unnecessary costs arising from an outdated tax structure,” he said.
Koh said the removal of the colonial-era Act would send out a clear intent on Prime Minister Datuk Seri Anwar Ibrahim's recent comments that "a sovereign nation must have the confidence to review laws inherited from its colonial past".
"Colonial-era laws must be abolished so that this country can give true meaning to independence.
"Independence is not just about ending foreign rule, but about reclaiming the right of Malaysians to determine their own destiny and future.
"For hundreds of years, we were humiliated.
"The Portuguese, the Dutch, the British and the Japanese decided for us," he said during his speech at the Sahabat Madani 2026 event held in conjunction with National Day at Universiti Teknologi Mara (UiTM) Campus in Permatang Pauh, Penang in August.
Anwar, who is also the Finance Minister, will be tabling Budget 2027 on Friday (Oct 9).
