KUALA LUMPUR: The government's decision to exempt local film and theatre tickets in the Federal Territories from entertainment duty has been welcomed as a positive step for the creative industry.
However, industry leaders say a broader approach is needed to truly support the arts ecosystem.
Veteran theatre practitioner Datuk Dr Faridah Merican welcomed the exemption—announced by Prime Minister Datuk Seri Anwar Ibrahim during the recent Budget 2027 presentation—noting that it would ease financial pressure on both productions and audiences.
However, she stressed that tax relief alone cannot solve the wider challenges facing arts organisations and practitioners.
"While the exemption of entertainment duty on tickets to films and local performances means it will not take away from the already small income that most productions make and an unnecessary ticket price hike for audiences, a more systematic approach is needed," she told the New Straits Times.
Faridah, co-founder and executive producer of the Kuala Lumpur Performing Arts Centre (KLPAC) and The Actors Studio, called for an inclusive framework that supports different art forms, venue structures, and industry players, rather than relying on strict funding criteria.
"One that is more inclusive, taking into account different art forms and organisational structures or players, as well as a comprehensive framework tackling things like audience development, content creation, talent development and the all-important infrastructure," she said.
She noted that arts organisations often miss out on funding simply because they do not meet rigid eligibility criteria, despite the small number of grants available.
Major venues like KLPAC, she added, can easily be left behind despite playing a central role in keeping the performing arts alive.
"While it is good to have initiatives that support audience behaviour, you also need to support the hubs that also play a critical role," she said.
Faridah emphasised that encouraging ticket sales must go hand-in-hand with funding the venues that nurture creative talent.
"One needs both the hardware and software," she added.
Under Budget 2027, tickets for local films and theatre performances in the Federal Territories will be fully exempt from entertainment duty from 2027, with state governments encouraged to follow suit.
The government has also allocated over RM130 million to support the creative sector.
This includes incentives for film and animation, alongside funding for projects that promote Malaysian culture and identity.
Faridah's comments underline a key message: short-term tax relief must be backed by long-term investment across the entire arts community.
© New Straits Times Press (M) Bhd