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Budget 2027 grants entertainment duty exemption to local cinema and theatre

The measure applies in Malaysia’s Federal Territories, while more than RM130 million will support film, music and creative content.

By Linh Tran

Rows of seats facing a cinema screen
Photo: Malay Mail

Malaysia’s Budget 2027 provides a full entertainment duty exemption from 2027 for tickets to locally produced films and theatre shows in the Federal Territories. Prime Minister Datuk Seri Anwar Ibrahim outlined the measures in the Dewan Rakyat on October 9.

Anwar said the government would provide more than RM130 million for creative content, music and film. The allocation is intended to create jobs, raise Malaysia’s profile and take Malaysian stories to overseas audiences.

The package covers incentives for film and animation projects shot in Malaysia by domestic and international productions. Works highlighting the country’s culture and national identity will receive additional incentives.

The government will also strengthen the domestic animation sector to develop 20 new intellectual properties (IPs) and bring Malaysian characters to global markets. It called on state governments to offer comparable duty exemptions for the benefit of local creative practitioners.

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