MATFA Calls for Legal Reforms in Malaysia’s Tourism Industry

By The Malketeer

Will Malaysia Seize Opportunities, or let Archaic Policies Continue to Hold the Industry Back?

As Visit Malaysia 2026 approaches, theme park operators are urging the government to modernise outdated laws that stifle the industry’s growth and global competitiveness.

The Malaysian Association of Theme Parks and Family Attractions (MATFA) President, Tan Sri Richard Koh, has highlighted a critical issue: a 25% entertainment tax, originally meant for vice-related activities like gambling, is still being imposed on family-friendly attractions such as theme parks, zoos, and educational playlands.

In an era where experience-driven tourism is booming, this archaic taxation policy has made Malaysia less competitive compared to neighbouring countries like Singapore and Thailand.

International investors seeking to develop world-class attractions are discouraged by heavy taxation, limiting the industry’s potential.

“Theme parks and family attractions are key economic drivers, benefiting hotels, restaurants, airlines, malls, and job creation. Yet, we are still operating under a law from 1953, which undermines affordability and investment in the industry,” Koh explained.

With family-oriented entertainment playing a crucial role in tourism strategies worldwide, the industry is lobbying for a fairer tax structure that recognises theme parks as legitimate contributors to economic growth rather than categorising them alongside nightclubs and

Beyond taxation, Koh also highlighted the need for better industry classification, as the term “theme park” is often misused.

Differentiating between theme parks, amusement parks, water parks, and other entertainment venues would allow for clearer branding and market positioning, ensuring Malaysia capitalises on its strengths.

From a marketing perspective, these changes are essential.

Theme parks are not just leisure destinations; they are powerful storytelling platforms that shape a nation’s tourism identity.

Disneyland, Universal Studios, and Legoland have demonstrated how a well-positioned brand can elevate a country’s status as a must-visit destination.

If Malaysia wants to compete with global tourism giants, regulatory reforms are a necessary first step.

With Visit Malaysia 2026 on the horizon, the government has a golden opportunity to revamp its policies and create a more investment-friendly landscape.

A tax reduction, clearer industry definitions, and strategic marketing efforts could transform Malaysia into a leading destination for experiential tourism in Southeast Asia.

The way Malaysia brands its theme parks and family attractions in the coming years will determine whether the nation can capture a larger share of the lucrative tourism market.

If the government takes swift action, Malaysia could redefine its tourism narrative and emerge as a true competitor in the global theme park industry.

The next move lies with policymakers, and the tourism sector is watching closely.