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Malaysian theme park operators call for law reforms to boost tourism industry

Malaysian theme park operators call for law reforms to boost tourism industry
March 12, 2025

Malaysian theme park operators want to boost tourism and have called on the government to reform laws they consider to be negatively impacting the industry.

The Malaysian Association of Theme Parks and Family Attractions (MATFA) also asked for clarification on the overuse of the term 'theme park' to distinguish between theme parks, amusement parks, water parks, and other entertainment venues to ensure accurate industry representation.

MATFA was established in October 2001 to represent members' interests in all matters relating to the operation of Family Entertainment Centres when dealing with local authorities and government agencies.

MATFA chairman, Tan Sri Richard Koh, advised that archaic laws affecting the industry needed to be amended and explained "the industry is regulated by a law from 1953, which imposes a 25% tax on family attractions. It is a law originally targeting vice activities like gambling.”

In a statement made in 2020, Koh noted that abolishing the 25% entertainment tax “will hopefully encourage the middle- and lower-class families to come to our parks as they may then afford the tickets.”

On the laws regulating the industry, Koh said these were 'sin taxes' meant for night entertainment venues and that such laws undermine affordability and deter investments in the industry.

Koh noted that healthy recreational spaces for families, educational playlands for children, and zoos are examples of attractions impacted by the outdated law.

Koh is the founder of JungleGym Playland and The Top Penang and has been involved in renowned projects such as Universal Studios Singapore and Sunway Lagoon.

He stressed that the industry needs government support, as it plays a crucial role in Malaysia's tourism sector, generating billions of ringgit and supporting over 50,000 jobs adding "with Visit Malaysia Year 2026 coming, we urge the government to back the industry to be more effective to compete better in the region.”

Image. Malaysian Theme Park Escape Penanag

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