THE government will raise the duty-free shopping allowance for visitors and tourists in Langkawi tenfold, from RM1,000 to RM10,000, from Jan 1, 2027, as part of efforts to strengthen the island’s tourism economy.
Deputy Finance Minister Liew Chin Tong told the Dewan Rakyat today that the measure, announced under Budget 2027, would allow visitors to spend more on a wider range of goods, including watches, handbags, electrical and electronic products, and textiles.
The exemption will not cover certain goods, including smoking products and motor vehicles.
Liew said the increase was expected to generate new investment and channel greater spending to duty-free retailers and local entrepreneurs. Visitors will, however, be required to stay on the island for a minimum of 48 hours to qualify.
He also said the government would expand the list of Langkawi-made products eligible for import duty exemptions when brought into the Principal Customs Area, from 23 to 29 items, with the changes also taking effect on Jan 1, 2027.
Responding to concerns over changes to the island’s duty-free concessions, Liew stressed that Langkawi’s status as a duty-free island remained in force.
Langkawi MP Datuk Mohd Suhaimi Abdullah raised the issue in the Lower House, seeking an update from the Finance Ministry on the review ordered by Prime Minister Datuk Seri Anwar Ibrahim in April.
He asked whether the ministry had completed its assessment, how much federal revenue could be lost if the previous exemptions were reinstated, and whether this had been weighed against potential increases in tourism, spending and employment.
Liew said specific goods continued to be subject to duties and taxes to curb revenue leakage and prevent abuse of the exemptions. These include smoking products and motor vehicles valued above RM300,000, while vehicles worth RM300,000 and below retained their existing exemptions.
The government introduced the vehicle threshold from Jan 1, 2026, as part of measures to prevent wealthy individuals from exploiting the concessions for luxury vehicles while preserving benefits for residents and local businesses.
Liew said the government continued to review and monitor the concessions, balancing the need to support tourism and local economic activity against stronger enforcement to protect national revenue.
According to data from the Langkawi Development Authority, the island recorded 12.61 million tourist arrivals between 2021 and 2025, an increase of 194 per cent from 1.09 million in 2021 to 3.21 million in 2025. A further 1.8 million tourists visited Langkawi up to August 2026, mostly domestic visitors.
The government also allocated RM750 million for initiatives supporting preparations for Visit Malaysia 2026, including the development of geotourism products at Kilim Geoforest Park, the Gua Selat Panchor hiking trail and trekking routes within the Langkawi UNESCO Global Geopark.
Liew said the government remained committed to developing Langkawi as an international tourism destination, with economic growth driven by its natural attractions, historical heritage and quality local products - October 26, 2026
