Budget 2027: RM935 mln for tourism, culture as Visit Malaysia campaign extended to 2027
The federal government has allocated RM935 million for tourism and culture under Budget 2027, following the extension of the Visit Malaysia campaign to next year.
Source: DayakDaily · October 9, 2026 at 3:32 PM · AI-assisted report
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PARLIAMENT, 9 OCTOBER 2026 —
Prime Minister Datuk Seri Anwar Ibrahim today unveiled a RM935 million allocation for tourism and culture in Budget 2027, marking the extension of the Visit Malaysia campaign through 2027 as the government doubles down on efforts to revive international arrivals and position Malaysia as a premier global destination.
Market Impact
The funding, announced during the Budget 2027 tabling in Parliament, will underpin a multi-pronged strategy to enhance tourism infrastructure, promote cultural heritage, and attract high-value international events—while also addressing long-standing challenges in connectivity, payment convenience, and local business support.
Among the key initiatives, the government will provide incentive grants for tourism industry players to organise events and promotions, alongside upgrades to critical facilities, including jetties and UNESCO-recognised heritage sites. Three sites—Danum Valley in Sabah, Bujang Valley in Kedah, and Pahang National Park—have been earmarked for development, with the aim of securing UNESCO World Heritage status.
Anwar highlighted that arts, culture, and heritage would take centre stage with a Cultural Festival tied to the 2027 Southeast Asian (SEA) Games, while local artisans in traditional crafts, weaving, and batik production will receive continued support.
To strengthen Malaysia’s international appeal, the government will expand the International and Charter Flight Matching Grants to encourage new direct flight routes from China, India, Central Asia, and Europe. The grants will also extend to cruise ships, ferries, and tour buses, broadening the scope of international tourist arrivals.
Meanwhile, duty-free shopping allowances for visitors to Langkawi and Labuan will rise to RM10,000, provided they stay for at least 48 hours, while more locally made products from Langkawi will be exempted from import duties to bolster entrepreneurship.
Addressing a persistent pain point for tourists and locals alike, Anwar announced the expansion of QR code payments to 15 resort destinations, including resort islands, to reduce reliance on cash and improve access to financial services in areas with limited ATM availability.
The Budget further incentivises Malaysia’s bid to host major international events by offering rebates to organisers of large-scale gatherings at venues with a capacity of 10,000 spectators or more. Tax incentives for international-standard incentive trips, conferences, and trade exhibitions will also be extended until the 2030 year of assessment, reinforcing the country’s position as a hub for global business and leisure tourism.
The measures reflect the government’s broader objective to diversify Malaysia’s tourism sector, reduce over-reliance on traditional markets, and attract higher-spending visitors through improved infrastructure and cultural offerings. With international arrivals still recovering from pre-pandemic levels, the extended Visit Malaysia campaign and targeted allocations aim to accelerate growth in a sector critical to Malaysia’s economic recovery.
As Budget 2027 takes effect, industry stakeholders and local businesses will closely monitor the implementation of these initiatives, particularly the UNESCO heritage push, expanded flight grants, and duty-free incentives, which could redefine Malaysia’s tourism landscape in the coming years. The government’s focus on digital payments and event hosting also signals a shift toward modernising tourism services while ensuring long-term sustainability for local economies dependent on visitor spending.
Related: Datuk Seri Anwar Ibrahim · Parliament