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MCA Tourism Bureau supports the call by the Langkawi Tourism Industry Players Association to restore Langkawi’s full duty-free status as it remains a cornerstone of the island’s tourism appeal and economic vitality.

Langkawi’s duty-free privileges are not merely a policy feature but also a strategic advantage that has, for decades, differentiated the island from other regional destinations. Any dilution of this status risks eroding its competitiveness, particularly at a time when neighbouring countries are aggressively strengthening their tourism offerings.

From the perspective of industry sustainability, reinstating full duty-free status is crucial for several reasons. First, it directly supports local businesses, including retailers, hoteliers and transport operators whose livelihoods depend on consistent tourist spending. Reduced incentives will inevitably translate into lower visitor expenditure and weaker business performance.

Second, investor confidence is at stake. Policy uncertainty or gradual erosion of long-standing incentives may discourage both existing and potential investors from committing to Langkawi’s long-term development. A clear and consistent policy direction is essential to sustain private sector participation.

Third, current global uncertainties further reinforce the need to strengthen domestic and regional tourism. The ongoing tensions in the Middle East, coupled with advisories to refrain from non-essential travel to Gulf States, have already led many Malaysians to scale back trips to Europe via Gulf transit hubs and visits to the Middle East as well.

In this context, and leveraging on Visit Malaysia 2026, reinstating Langkawi’s full duty-free status presents a timely opportunity to redirect outbound demand towards a safe, accessible and high-value local destination.

Additionally, restoring duty-free status should be complemented by parallel efforts to upgrade infrastructure, enhance connectivity and improve service quality.

This includes expanding access not only through commercial passenger flights but also to chartered flights from Eastern Europe and North Asia, particularly during peak summer vacation periods. Also, greater emphasis should be placed on upgrading the island’s existing ports to attract large ocean liner cruises to dock there, thereby opening up a new and valuable segment of international visitors.

Strengthening these multiple entry points combined with seamless transport within the island, and stronger digital and tourism promotion strategies to attract international markets will broaden Langkawi’s reach and reinforce its position as a premier tourist haven. Ultimately, Langkawi is not just a tourism destination but a national asset, too. Protecting its competitive edge requires policies that are consistent, investor-friendly and aligned with long-term growth.

While concerns over abuse of duty-free privileges, particularly involving luxury vehicle purchases, are valid, blanket restrictions may not be the most effective solution. A more targeted and transparent enforcement mechanism by local authorities would better address misuse without undermining the broader ecosystem.

The government needs to seriously consider restoring Langkawi’s full duty-free status while implementing smarter safeguards against abuse. A balanced approach will ensure that the island continues to thrive as Malaysia’s premier tourism hub while delivering sustainable economic benefits for its citizens.

Lawrence Chiew Kai Heng

MCA Tourism Bureau chairman

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my