Malaysia · Proposed legislation
Malaysia proposes RM10,000 visitor allowance for Langkawi and Labuan
On 9 October 2026, Malaysia’s Prime Minister and Minister of Finance, Anwar Ibrahim, proposed a RM10,000 duty-free purchase limit for visitors and tourists to Langkawi and Labuan, subject to a minimum stay of 48 hours.
- Official document:
- Budget 2027 Tax Measures, Appendix 32; Customs Duties (Exemption) Order 2017, P.U. (A) 445/2017, item 11; Sales Tax (Persons Exempted From Payment Of Tax) Order 2018, P.U. (A) 210/2018, Schedule A item 17
- Development date:
- 2026-10-09
Two taxes and a specified exclusion list
Appendix 32 covers import duty and sales tax when goods move from duty-free islands into the Principal Customs Area. For Langkawi and Labuan, it proposes a RM10,000 limit for new goods, excluding tyres and tubes, alcoholic beverages, cigarettes, tobacco products, smoking pipes, and electronic cigarettes or vapes, including liquids or gels.[1]
The proposed start is 1 January 2027. The Appendix says treatment for Tioman, Pangkor and Pulau 1, Forest City would remain unchanged. Its current-position comparison shows separate product limits, including RM1,000 for the residual goods category, and a 24-hour stay for Labuan versus 48 hours for Langkawi. These are the Budget’s stated comparisons, not a certification of the complete current exemption chain.[1]
The legal framework is older than this proposal
The original Customs Duties (Exemption) Order 2017, P.U. (A) 445/2017, item 11, already used product categories and minimum island stays. It specified 24 hours for Labuan and 48 hours for Langkawi or Tioman, with a RM500 residual-category limit. That original figure is historical; it must not replace the Budget’s later RM1,000 comparison.[3]
For sales tax, the original P.U. (A) 210/2018 order, made under paragraph 35(1)(b) of the Sales Tax Act 2018, commenced on 1 September 2018. Schedule A item 17 covers persons entering from designated areas, with specified goods, stay conditions and rules for quantities or values exceeding the exemption. Its original RM500 residual limit likewise does not establish today’s consolidated allowance.[4]
Separate visitor spending from commercial sourcing
For retail and tourism groups, the announced change concerns visitor purchasing conditions. It is distinct from Appendix 31’s Langkawi-origin product relief. Neither the proposed January start nor the larger allowance is authority to apply new relief now; current claims and final implementing conditions require separate confirmation.[1]
Official sources
- [1] Budget 2027 Tax Measures — Appendix 32
Ministry of Finance Malaysia · Document date: 2026-10-09
Full Appendix32, printed/PDF44, zero-based43, lines1076–1129: current table, proposed new-goods exclusions, RM10000/48hours Langkawi+Labuan, other islands unchanged, proposed1January2027. Full36contents headings and Appendix17 read, not entire business-tax package. Current position attributed to Budget, not certified residual chain.
- [2] Speech: The Fifth MADANI Budget 2027
Ministry of Finance Malaysia · Document date: 2026-10-09
Header dated9October2026 identifies Prime Minister and Minister of Finance AnwarIbrahim/DewanRakyat. Full paragraph177: visitor RM10000/minimum48hours and distinct Langkawi-made products proposal. Selected sections only.
- [3] Customs Duties (Exemption) Order 2017 — P.U. (A) 445/2017
Attorney General’s Chambers / Royal Malaysian Customs Department · Document date: 2017-12-29
Entire original PartI item11, printed/PDF11 zero-based10, all person/goods/conditions/certificate columns text-read from exact original PDF downloaded during preceding source recovery (SHA25618303f89786e5f505676432761bb1bf5fe37f89f4c1034099af52ca3fb7adf78). Current exact GET502, no fresh-fetch claim. Existing original PDF item11 rendered and actual pixels inspected at22:08:53Z. Historical original RM500 and24/48hour rules, not current consolidated entitlement.
- [4] Sales Tax (Persons Exempted From Payment Of Tax) Order 2018 — P.U. (A) 210/2018
Attorney General’s Chambers / Royal Malaysian Customs Department · Document date: 2018-08-28
Original cover; English paragraphs1–4 and entire ScheduleA item17 across PDF19–21, zero-based18–20, all goods/conditions/certificate columns, web lines631–706. Web extracted original body actually read; currentlink and olderasset ordinaryGET50398bytes, no downloadedPDF or actual visual claim. Original statutory authority35(1)(b)/1September2018start/RM500/24–48hour baseline, not residual amendment-chain certification.