Malaysia increases tourism budget to boost infrastructure and Singapore connectivity

Malaysia has announced a significant increase in its 2027 budget for tourism and transport infrastructure. Prime Minister and Finance Minister Anwar Ibrahim revealed that 935 million Ringgit (approximately 293 million USD) has been allocated to the tourism sector, representing a 32.6% increase compared to 2026.

Key initiatives include extending the ‘Visit Malaysia 2026’ campaign into 2027 and restoring heritage sites in Kuala Lumpur. To boost regional travel, the government is increasing duty-free shopping limits in Langkawi and Labuan to 10,000 Ringgit for tourists staying at least 48 hours.

Infrastructure efforts are focused on improving connectivity with Singapore, particularly in Johor. Preparations are underway for the Rapid Transit System (RTS) Link, scheduled to begin operations in February 2027. To manage expected passenger surges, the government is investing in automated elevated transit systems (e-ART), expanded bus routes, and increased KTM Komuter train frequency. Additionally, the budget for the Malaysian Border Control and Protection Agency will rise from 37 million Ringgit to 490 million Ringgit to handle increased movement of people and goods.