Budget 2027: RM935 Mln Allocation To Further Drive Tourism Growth

By Atira Khalisha Nor Adnan

KUALA LUMPUR, Oct 13 (Bernama) -- The extension of the Visit Malaysia Year (VMY) campaign, backed by a RM935 million allocation under Budget 2027, is expected to strengthen the country’s tourism sector and expand its growth potential.

The Malaysian Association of Tour and Travel Agents (MATTA) said the allocation reflected the government’s continued commitment to strengthening the sector through more aggressive promotional efforts, infrastructure improvements, expanded international air connectivity and support for world-class events.

However, MATTA president Nigel Wong stressed that the priority now was to ensure the funds translated into tangible benefits for tourism businesses and industry players on the ground.

“We hope the grants and incentives will be accessible to all segments of the tourism industry, including travel agencies, tour operators, tourism transport companies and small and medium-sized enterprises (SMEs).

“Our aim is not merely to attract more tourists, but to ensure that their spending also benefits local businesses and contributes to the national economy,” he told Bernama.

Prime Minister Datuk Seri Anwar Ibrahim announced the RM935 million allocation for the tourism and culture sectors when tabling Budget 2027 on Oct 9, following the extension of the VMY campaign to 2027.

Anwar, who is also the Finance Minister, said the allocation included grants to help industry players promote and organise tourism events.

Wong said MATTA remained committed to working with the government, Tourism Malaysia and industry players to strengthen Malaysia’s competitiveness as a preferred destination for international tourists.

“Through MATTA’s network of travel agencies, we can develop tourism packages that combine ecotourism, heritage, culture, local cuisine and community-based experiences, encouraging tourists to explore a wider range of destinations across Malaysia.

“MATTA will also encourage its members to utilise available promotional grants and opportunities to create tourism packages catering to both domestic and international tourists,” he said.

He added that the benefits should extend to local businesses, hotels, tour guides, transport operators and communities.

Meanwhile, Malaysian Inbound Chinese Association (MICA) president Datuk Dr Angie Ng said the substantial allocation would enable the industry to intensify promotional efforts, strengthen Malaysia’s appeal as a tourist destination and support further growth in the sector.

“From the Chinese market perspective, the progress is highly encouraging, with Malaysia recording about 4.7 million visitor arrivals from China in 2025, an increase of 25.1 per cent compared with 2024.

“In the first quarter of 2026, visitor arrivals from China reached approximately 1.4 million, an increase of 25.2 per cent compared with the same period in the previous year,” she said.

Ng said the positive growth recorded in the first quarter of 2026 reinforced MICA’s confidence in the Chinese market as a key source of growth for Malaysia’s tourism sector.

On the government’s initiative to expand Quick Response (QR) code payment facilities to 15 tourist hotspots, including resort islands, by 2027, she described the move as a strategic step towards improving the visitor experience, particularly at destinations with limited access to automated teller machines (ATMs).

“Digital payments and e-wallets are becoming increasingly integral to the travel experience, particularly for Chinese tourists, who commonly use mobile payment applications such as Alipay and WeChat Pay for daily transactions.

“Therefore, expanding QR code payment facilities could enhance Malaysia’s appeal to international tourists, provided the systems accommodate their preferred payment methods,” she said.

-- BERNAMA