KUALA LUMPUR — Malaysians will enjoy up to RM1,000 tax relief on their individual income tax for entrance fees to local tourism centres and cultural programmes, Prime Minister Datuk Seri Anwar Ibrahim said today in his Budget 2026 speech.

Anwar, who is also finance minister, said this tax relief is to encourage Malaysians to travel within the country, in conjunction with Visit Malaysia Year 2026.

Anwar said Malaysia aims to attract 47 million tourists and to generate tourism income of RM329 billion next year.

He said the government will allocate over RM700 million for the tourism sector:

RM500 million for the Visit Malaysia Year 2026 campaign;

RM60 million for promotion, marketing, organising of tourism events and cultural activities;

RM50 million to support craftsman such as those making handicrafts, batik and weaving;

RM50 million matching grant to encourage international flights and charter flights to Malaysia;

RM25 million to improve tourism facilities, including conservation of Unesco sites (such as Mulu National Park, Sarawak; Lenggong Valley, Perak; FRIM Forest Park, Selangor);

RM20 million for health tourism programmes.

He also said there would be new geotourism products being developed on Langkawi, namely Kilim Geoforest Park, Selat Panchor cave trails, and hiking trails at Langkawi Unesco Global Geopark.

In conjunction with Visit Malaysia Year 2026, there will also be tax incentives for the tourism and cultural sector:

Tax rebates on eligible expenditure up to RM500,000 for tourism project operators who renovate business premises;

100 per cent tax exemption on tourism operators’ companies on increased income from tourism packages to Malaysia;

100 per cent income tax exemption on statutory income for companies, associations or organisations who organise international-level Meetings, Incentives, Conferences and Exhibitions;

50 per cent income tax exemption on statutory income for companies which organise arts, cultural, tourism activities and international-level sports and recreational competitions which involve foreign participants.