Budget 2027: Entertainment duty waived for local film, theatre tickets in Federal Territories, creative sector gets RM130m

On October 9, the Malaysian government announced a significant move to bolster the country's creative sector. Starting in 2027, tickets for local films and theater performances in the Federal Territories will be exempt from entertainment duty. This initiative is part of a broader strategy to strengthen Malaysia's position in the global creative industry, create employment opportunities, and bring more local stories to international audiences.

A total of more than RM130 million has been allocated to support the film, music, and creative content sectors. This funding is aimed at enhancing Malaysia's international image and fostering a conducive environment for local creative practitioners.

The government's announcement also highlights incentives for both local and international film and animation productions that choose to film in Malaysia. Furthermore, additional incentives are being offered to projects that highlight Malaysian culture and national identity. These incentives are seen as crucial steps in bolstering the nation's animation ecosystem.

Specifically, the government plans to develop 20 new intellectual properties (IPs) and commercialize Malaysian characters on a global scale. This strategic move is expected to significantly boost Malaysia's presence in the global animation market.

In line with these efforts, state administrations are urged to follow suit by introducing similar exemptions for entertainment duty. This move by the central government is expected to create a ripple effect across the country, providing a supportive environment for the local creative sector to thrive.