Kuala lumpur: The Malaysian Association for Arts, Live Events, Concerts and Festivals (ALIFE) has urged the Federal and state governments to abolish the Entertainment Duty Act 1953 to unlock the full potential of the nation's creative economy. ALIFE senior advisor Rizal Kamal said the question is no longer whether the Act is outdated, but why the country continues to operate under it. "Entertainment today is not a luxury. It is culture, family recreation, tourism and an important contributor to Malaysia's creative economy," he said in a statement.
According to BERNAMA News Agency, there is a common misconception that the entertainment duty applies only to major international concerts when it actually applies to virtually every ticketed live performance, including theatre productions, musicals, comedy clubs and arts festivals. The association said the heaviest burden of the tax falls on grassroots performers, such as emerging comedians, independent musicians and local theatre companies who rely on affordable ticket prices to build their audiences.
ALIFE stressed that the Entertainment Duty Act 1953, introduced during the colonial era when entertainment was regarded as a luxury, is no longer suited to Malaysia's modern creative economy. Furthermore, ALIFE noted that inconsistent tax rates, complex approval processes and differing administrative interpretations across states and municipalities discourage domestic touring to high-potential cities such as Johor Bahru, Penang, Kuching, Kota Kinabalu and Ipoh.
"This fragmented approach discourages domestic touring, creates unnecessary costs and limits the growth of Malaysia's live performance ecosystem," it added. However, ALIFE lauded the Federal government's decision to exempt entertainment duty for international live performances until 2028, saying that the policy has already driven remarkable growth and generated significant economic spillover benefits in Kuala Lumpur.
The association believes the same policy certainty should now be extended nationwide to unlock private sector investment. The objective should focus on maximising regional economic activity, supporting local businesses, creating jobs and strengthening Malaysia's competitiveness, rather than on ticket tax collections, it added.