Malaysia to launch Special Tourism Zones in four states
Malaysia is moving ahead with plans to establish Special Tourism Investment Zones (STIZ) in four states—Johor, Melaka, Negeri Sembilan, and Sarawak—under the country’s 13th Malaysia Plan (2026–2030).
The initiative is designed to attract private investment and foster collaboration between federal and state governments, the tourism industry, and cooperatives. Officials say the zones will serve as catalysts for developing new tourism products centered on art, culture, heritage, and natural attractions.
Tourism remains a pillar of Malaysia’s economy, and the government aims for the sector to contribute 16 percent of GDP by 2030. As of mid-2025, authorities have identified 43 potential sites nationwide for STIZ designation.
Sarawak is expected to have at least one site formally gazetted this year, although state leaders are still awaiting detailed briefings on the federal plan. Popular destinations such as Mulu, Niah, and Kuching Delta Geopark are seen as possible beneficiaries.
Industry players caution, however, that the success of the program hinges on clear incentives. Without measures such as tax breaks, grants, or interest-free loans, private investors may hesitate to commit.
Johor, with established tourism draws like Desaru and Forest City and its proximity to Singapore, is seen as particularly well-positioned to benefit from its STZ. Melaka and Negeri Sembilan, already popular for cultural and coastal tourism, are also slated to be included, Details about the location of the area within both states are still pending.
The government hopes the zones will not only drive economic growth but also strengthen Malaysia’s position as a top destination ahead of Visit Malaysia Year 2026. The country experienced a 20.4% increase in international tourist arrivals from January to May 2025, reaching 16.94 million visitors. It now hopes for over 35 million international arrivals in 2026.
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