THE government has allocated RM935 million for tourism and culture under Budget 2027 as it extends the Visit Malaysia campaign into next year, raises the duty-free shopping limit for visitors to Langkawi and Labuan to RM10,000 and introduces incentives to attract more international events.
The allocation will support grants for tourism operators to promote destinations and organise events, alongside upgrades to tourism facilities, including jetties and heritage sites with potential for UNESCO recognition.
The sites identified include Danum Valley in Sabah, the Bujang Valley in Kedah and Taman Negara Pahang.
The government will also promote Malaysia’s arts, culture and heritage through a cultural festival held in conjunction with the SEA Games, while supporting practitioners in traditional crafts, weaving and batik.
To improve international connectivity, matching grants for international and charter flights will help establish new direct routes from China, India, Central Asia and Europe. The scheme will also be expanded to cover cruise ships, ferries and tour buses bringing international visitors to Malaysia.
In Langkawi and Labuan, the duty-free shopping limit for visitors and tourists will rise to RM10,000, subject to a minimum stay of 48 hours. More locally made products from Langkawi will also qualify for import duty exemptions to support local entrepreneurs.
The government will expand QR payment facilities at 15 locations next year, including resort islands, to help visitors make cashless payments and enable small businesses to capture sales where access to ATMs is limited.
Malaysia will also offer rebates to organisers of major international events held at venues with a capacity of at least 10,000 spectators. Tax incentives for international incentive trips, conferences and trade exhibitions will be extended until the 2030 year of assessment.
The measures are aimed at strengthening Malaysia’s appeal as a tourism destination and increasing visitor spending through better connectivity, improved facilities and a wider calendar of international events. - October 9, 2026
