KUALA LUMPUR – A 50% tax exemption for companies organising international sports events is expected to spur more high-level competitions in Malaysia, giving a major boost to both tourism and the local sports economy, Youth and Sports Minister Hannah Yeoh said today.
The initiative — announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026 on Friday — grants a 50% tax exemption on statutory income for private companies that host international arts, cultural, tourism, and sports or recreational competitions involving foreign participants.
Hannah said the incentive, which comes ahead of Visit Malaysia Year 2026, marks a significant leap from the previous 10% exemption offered for sponsorships.
“Next year is Visit Malaysia 2026, so the government is boosting tax incentives to companies that not only want to organise competitions in arts and tourism, but also in sports,” she said after officiating the Lazada Run prize presentation ceremony in Cyberjaya today, as quoted by Bernama.
“This 50% exemption is a significant amount compared to the previous 10%. We expect it will encourage more companies to invest in organising international events, which will in turn stimulate our tourism and domestic sports sectors.”
However, Hannah cautioned that all organisers must obtain prior approval from the Youth and Sports Ministry to ensure events comply with national regulations and secure the necessary clearances from relevant authorities.
“We do not want any party organising international meets without the country’s approval. If they fail to meet conditions such as insurance or local authority permits, it could tarnish Malaysia’s image and credibility,” she said.
“As such, I urge any company or sports association intending to hold international competitions to obtain permission from the ministry first.”
Hannah also reminded corporations that contributions to the National Sports Trust Fund (KWASN) qualify for a full tax exemption, encouraging more private-sector involvement in sports development.
The measure complements Malaysia’s broader push to attract international events and strengthen the country’s reputation as a regional hub for sports tourism ahead of Visit Malaysia Year 2026. — October 12, 2025