Significant sports funding in Budget 2026 raises expectations for performance, says sports consultancy group

Malaysia’s Budget 2026 marks a major milestone for the nation’s sporting landscape, with the government allocating RM584.9 million specifically for sports development – the largest commitment since 2020.

According to a report by Sportswork Group Sdn Bhd, the allocation represents a 161 per cent increase compared to 2024 and a 50 per cent jump from 2025’s RM389.9 million.

The sports consultancy company cautioned that the increased budget comes with heightened expectations for performance, transparency, and effective delivery. While the response has been overwhelmingly positive, Sportswork, in its report titled Malaysia Budget 2026: A comprehensive analysis of the sports industry, said greater funding must be matched by stronger accountability and measurable outcomes – not only in medals and podium finishes, but also in community engagement, participation rates, and transparent reporting.

“National sports associations (NSAs) must demonstrate that they are making good use of the additional resources by achieving quantifiable gains in programme results and athlete performance,” the report stated. “It is also strongly advised that reporting procedures be developed to exhibit accountability and openness. Associations must cultivate advanced proposal writing skills and strategic planning knowledge to compete for further financing.”

The consultancy noted that the added funding aligns with the 13th Malaysia Plan (RMK13), which positions sport as a social unifier and an economic driver under the Madani development framework.

Sportswork founder Nur Jasni Mohamed described Budget 2026 as ‘Malaysia’s community budget for sport’, empowering neighbourhood organisers, unlocking private initiatives, and giving families more reasons – and more places – to be active together.

“This is how we build a broader base of participation today, a stronger talent pipeline tomorrow, and a more resilient, values-driven sport industry for the decade ahead,” said Nur Jasni in the foreword of the report.

The largest share of the funding – RM304.9 million, just over half the total – has been earmarked for infrastructure and facilities, including nationwide maintenance of youth and sports venues and upgrades to school sports fields. Another RM150 million is allocated for high-performance sports, covering the Podium Programme, the Road to Gold initiative, and preparations for the 2027 SEA Games and Asean Para Games, which Malaysia will host.

Other allocations include RM120 million for games preparation, RM30 million for the sports matching grant to encourage private sector participation, and RM20 million for the newly established Community Sports Fund, designed to stimulate grassroots involvement.

The report also cautioned that the compressed preparation timeline for the 2027 SEA Games could test the operational capacity of government agencies and sports bodies.

“The preparation timeline for the 2027 SEA Games creates pressure to deliver results within a very compressed timeframe, compared with 2017. Associations and MASOC (Malaysia SEA Games Organising Committee) must rapidly scale operations and demonstrate readiness to perform at the highest regional level,” it said.

Beyond elite sport, Sportswork identified spillover benefits for the sports tourism, education, retail, and technology sectors. The consultancy noted that government support for domestic tourism – through the RM1,000 tax relief for entrance fees to local tourism centres and cultural programmes – creates opportunities for sports tourism development.

“This is a strategic move ahead of Visit Malaysia Year 2026. Sports events, recreational activities, and adventure sports can benefit from increased domestic travel and recreational spending,” it said.

“The RM10 million allocation for organising concerts to attract foreign tourists indicates broader government support for the events industry. Sports event organisers, venue operators, and tourism service providers can leverage these incentives to develop comprehensive sports tourism packages.

“The combination of increased sports funding and tourism incentives creates synergies for developing Malaysia as a regional sports tourism destination, particularly in the lead-up to the 2027 SEA Games.”

Sportswork also highlighted the potential of the government’s parallel push for digitalisation, tax incentives for artificial intelligence (AI) training, and the Malaysia Digital Accelerator Grant to catalyse innovation in sports analytics, performance tracking, and fan engagement platforms.

The consultancy underscored opportunities for community sports groups, local clubs, and small and medium enterprises in the sports value chain. However, it warned that competition for funding will be fierce, and organisations must demonstrate tangible social and economic impact to secure ongoing support.

“The ball is in the court of industry players. To capitalise on the opportunities presented, all parties must adopt a strategic game plan, enhance operational capabilities, and foster collaborative partnerships across the industry. There will also be increased competition and pressure to deliver measurable outcomes across all metrics – from athletes to venues to fan engagement. These will require an innovative and proactive approach from all stakeholders.”

Sportswork concluded that the sports industry is well-positioned for growth in 2026 if it aligns with the government’s strategic priorities, embraces innovative thinking, and demonstrates a commitment to strategic development.