Federal Territory to waive entertainment tax on local film and theatre tickets from 2027

In the 2027 budget speech, Finance Minister Anwar outlined a plan to eliminate entertainment duty on tickets for locally produced movies and theatre performances in the Federal Territory beginning in 2027, with a call for similar measures by state authorities. He unveiled a budget allocation exceeding RM130 million to strengthen the film, music and broader creative industries, featuring tax incentives for both domestic and international productions that choose Malaysia as a filming location.

The package also rewards projects that showcase local culture and national themes. Anwar highlighted ambitions to expand the animation ecosystem, aiming to create 20 new intellectual properties and promote Malaysian animated characters internationally. He stressed that nurturing the creative sector will enhance the country's image, generate jobs and bring Malaysian stories to global audiences.