The Malaysian Tourism Federation (MTF) has welcomed the federal government’s strong focus on tourism in the 2026 National Budget, presented on October 10 by prime minister and finance minister Anwar Ibrahim, calling it a clear signal of Malaysia’s intent to regain its position as a leading global destination during Visit Malaysia Year 2026 (VMY2026).
MTF president Sri Ganesh Michiel said in a statement that the government’s introduction of tax rebates of up to 1,000 ringgit (US$237) for Malaysians visiting local attractions and cultural programmes reflected a firm commitment to domestic tourism.
He also welcomed tax incentives for companies and associations organising international conferences, exhibitions, and incentive events in Malaysia, as well as a 100 per cent income tax exemption on increased income derived from tour packages to the country.
Ganesh said such support would encourage licensed tourism operators to reinvest in their businesses and align with Malaysia’s goal of delivering high-quality tourism experiences.
He praised the government’s allocation of more than 700 million ringgit to strengthen the sector, which aims to attract 47 million visitors and generate 329 billion ringgit in revenue during VMY2026. However, he stressed that benefits must be directed only to legitimate, licensed, and tax-compliant operators to prevent unfair competition and revenue loss.
“By ensuring that only licensed and regulated operators receive these incentives, we uphold the integrity of Malaysia’s tourism ecosystem and ensure that the government’s investment translates directly into sustainable economic returns,” he said.
MTF also urged federal and state governments to maintain contingency funds to protect tourism development in case of financial shortfalls, ensuring continuity of VMY2026 initiatives.
“Tourism is dynamic; readiness and adaptability are essential to meet emerging global trends,” Ganesh added.
He called on Malaysians to act as national ambassadors. “The success of VMY2026 depends on all of us. Let us unite in spirit, avoid negative publicity or actions that may harm the country’s image, and show the world the warmth, diversity, and unity that define Malaysia,” he said.
The Malaysia Budget & Business Hotel Association (MyBHA) echoed similar sentiments but urged the government to extend the 1,000 ringgit personal income tax relief to include accommodation at licensed hotels and resorts.
“This move would further promote responsible domestic travel, directly benefiting legitimate operators and reinforcing the importance of staying in licensed and regulated establishments that comply with safety and quality standards,” MyBHA said in its statement.
MyBHA also reiterated the need for enforcement against unlicensed accommodation providers that distort fair competition and evade taxes. The association welcomed the upcoming regulations on short-term rental accommodation, the revised Tourism Industry Act, and rules for OTAs, describing them as crucial to ensuring “fair competition, consumer protection, and long-term sustainability of Malaysia’s tourism and hospitality sector”.
