Kedah Menteri Besar urges the government to expand, not reduce, the list of tax-exempt items and calls for additional support measures including ferry fuel subsidies - April 18, 2026
Sanusi thanks Anwar, welcomes proposal to restore Langkawi duty-free status
The Kedah Menteri Besar welcomes the Prime Minister’s proposal to restore Langkawi’s duty-free status to revitalise the island’s economy
KEDAH Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has expressed support for Prime Minister Datuk Seri Anwar Ibrahim’s proposal to reinstate Langkawi’s duty-free status, describing it as a positive step towards revitalising the island’s tourism-driven economy.
Sanusi said the proposal had already received a favourable response from the Prime Minister following discussions raised at the Kedah State Legislative Assembly and subsequent federal-level engagements.
“I would like to thank PMX for the immediate feedback on issues raised in the Kedah State Legislative Assembly during the opening ceremony officiated by the Sultan of Kedah, Al Aminul Karim Sultan Sallehuddin Sultan Badlishah, as well as during Assembly debates… we have already received a positive response from PMX,” he said.
He added that he had also raised the matter with the Second Finance Minister Datuk Seri Amir Hamzah Azizan during a recent National Finance Council meeting.
“I had informed the Second Finance Minister during the recent National Finance Council meeting. He also promised me that he would list several items to be included (for tax exemption) and expanded. I hope the list will not be reduced, as that would affect other sectors negatively,” he said.
Sanusi noted that Langkawi was not only important to Kedah but also generated significant returns for the federal government.
“Langkawi is not only for the people of Kedah; the island generates economic returns for the federal government, with profits of between RM4 billion and RM7 billion annually,” he said at an Aidilfitri gathering for Kedahans in the Klang Valley attended by more than 10,000 people at IDCC Shah Alam.
He argued that the erosion of Langkawi’s unique duty-free appeal had contributed to a decline in its tourism competitiveness.
“I am told that luxury car companies were not removed from the list of duty-exempt goods, so those companies shut down,” he said.
“When the government implements this proposal, I hope luxury cars will be included in the tax exemption list. I hope this will be considered by PMX and the federal government. There are many other sectors that can benefit from the influx of tourists,” he added.
Sanusi also raised concerns over high ferry operating costs to Langkawi, saying fuel expenses were higher than those for other island destinations.
“I hope his (Prime Minister’s) proposal is sincere. He has also visited Langkawi many times.
“One issue I raised during the National Finance Council meeting is about ferries. Please provide fuel subsidies for Langkawi ferries; fuel costs there are the highest compared to Pulau Pangkor and Pulau Tioman,” he said.
He said the Kedah government was targeting a significant increase in tourist arrivals to Langkawi, from two million in 2025 to four million in 2026.
Earlier, media reports stated that the federal government would study the proposal to restore Langkawi’s duty-free status as part of efforts to rejuvenate the island’s economy, which has been affected by rising costs and a decline in domestic tourist appeal.
The Prime Minister had said the proposal warranted consideration given the recent slowdown in Langkawi’s tourism sector.
Anwar also expressed appreciation to the Sultan of Kedah for raising the matter.
“It means we are ready to study it and we extend our deepest gratitude to the Sultan of Kedah, and we will review it,” he said.
On 13 April, Sultan Sallehuddin had called on the federal government to consider restoring Langkawi’s original duty-free status during the opening of the Kedah State Legislative Assembly, in order to boost tourism and the local economy.
KJ free to stand in Kedah
Separately, Sanusi said Kedah remained open to political figures wishing to contest in the state, including former UMNO Youth chief Khairy Jamaluddin, stressing that the democratic system allowed anyone to stand in elections.
“Anyone can come and contest in Kedah. Let them come and contest in Kedah, and we will see what the people of Kedah say. Kedah is open to anyone.
“No problem. His mother is from Kedah. He understands the culture of the people here.
“It is up to them. Kedah is an open field and free to everybody. The country is democratic. Anyone can contest anywhere. I welcome anyone who wants to contest in Kedah,” he said.
His remarks came in response to suggestions that Khairy could help revive political fortunes in Kedah. - April 18, 2026
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