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MALAYSIA’S Budget 2026 outlines an expansive plan to revitalise the tourism, cultural and heritage sectors, positioning them as both economic drivers and nation-building tools ahead of Visit Malaysia Year 2026.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced a wide range of funding initiatives and tax incentives to support this ambition.
“Visit Malaysia Year 2026 will not only be a celebration of our diversity, but an opportunity to stimulate inclusive economic activity across every state,” Anwar said during his Budget 2026 address in Parliament.
To that end, RM50 million will be allocated to support craftspeople, including batik and tenun artisans, while another RM50 million in matching grants will encourage more international and charter flights into the country.
Malaysia Airports Holdings Berhad (MAHB) has already attracted 10 international carriers including British Airways, Hong Kong Express, and Jiangxi Air.
Another RM25 million is allocated for the upgrading of key tourism facilities, including UNESCO sites such as Gunung Mulu National Park in Sarawak, the Lenggong Valley in Perak, and the newly designated FRIM Forest Park in Selangor. A further RM20 million will go towards boosting Malaysia’s medical tourism sector via the Malaysia Healthcare Travel Council.
Langkawi, long regarded as a jewel of Malaysian tourism, will see new geotourism products developed at Kilim Geoforest Park, the Selat Panchor cave trail and the Langkawi UNESCO Global Geopark.
Tax Incentives to Spur Sector Growth
A comprehensive package of tax incentives has been proposed to fuel growth in tourism, culture, and creative industries ahead of 2026. These include:
“Tourism project operators undertaking renovation and modernisation of their premises will be granted income tax deductions of up to RM500,000 on eligible expenses,” said Anwar.
Tour operators will enjoy 100% income tax exemption on increased revenue from inbound tourism packages.
Organisers of international-level conferences, trade exhibitions and incentive events will receive full income tax exemption on statutory income.
Promoters of international cultural, tourism, artistic, and sporting events involving foreign participants will be granted 50% income tax exemption on statutory income.
To encourage domestic travel, individuals will be eligible for a special income tax relief of up to RM1,000 for spending on local attraction entry fees and cultural programmes.
Support for Taxi Drivers and Transport Operators
To aid licensed taxi and private hire drivers, full excise and sales tax exemptions will continue to apply for the purchase of new national vehicles (Proton and Perodua).
HRD Corp has allocated RM10 million to fund capacity-building courses for licensed taxi drivers who contribute to the HRD levy.
Breathing New Life into Kuala Lumpur’s Cultural Core
In an impassioned call to restore the soul of the capital, Anwar unveiled the Warisan KL initiative: “This is not merely about repairing walls and roofs — it is about reigniting the spirit of a city that must speak again about who we are, where we come from, and where we are headed,” he said, quoting the late Deputy Prime Minister Tun Dr Ismail Abdul Rahman.
Khazanah Nasional will invest RM600 million in restoring Carcosa Seri Negara, a historical mansion returned to Malaysia from the British nearly four decades ago.
The conservation effort will also extend to the iconic Kuala Lumpur Railway Station and the Dayabumi Complex. PNB’s Merdeka 118 development will house a new Malay textile museum and continue to conserve Merdeka Stadium and Stadium Negara.
Anwar extended appreciation to Khazanah, PNB, Petronas and the Railway Assets Corporation for their commitment to preserving the capital’s heritage fabric.
Community and Public Space Upgrades
Beyond iconic buildings, the government aims to uplift everyday urban infrastructure. DBKL will channel RM500 million of internal funds to upgrade hawker centres, public markets, and PPR housing.
Some RM200 million is earmarked for modernising food courts and wet markets, while RM300 million will go toward PPR building maintenance, electrical systems and roadworks.
“I visited Pantai Dalam recently and saw first-hand the frustrations of residents facing broken lifts. I have instructed DBKL to begin immediate repairs to all faulty lifts in PPR housing before the end of this year,” Anwar said.
Separately, RM60 million will be allocated to local councils nationwide to build or refurbish public markets and stalls. MARA will receive RM50 million to upgrade 363 business premises nationwide, benefitting over 7,000 entrepreneurs.
These measures, part of a broader vision under the MADANI framework, aim to fuse cultural identity, social equity and economic revival — bringing the past and present together as Malaysia prepares to welcome the world in 2026. - October 10, 2025
