Malaysia · Proposed legislation
Malaysia proposes wider import-duty relief for Langkawi-origin goods
On 9 October 2026, Malaysia’s Prime Minister and Minister of Finance, Anwar Ibrahim, proposed extending import-duty relief for products made in Langkawi as part of Budget 2027.
- Official document:
- Budget 2027 Tax Measures, Appendix 31; Customs Duties (Exemption) Order 2017, P.U. (A) 445/2017, Schedule Part I item 76; P.U. (A) 80/2022
- Development date:
- 2026-10-09
A revised product list
Appendix 31 proposes a revised exemption list for Langkawi-origin goods brought into the Principal Customs Area from 1 January 2027. Its six categories cover agriculture and agro-food; food and beverages; fisheries and marine products; minerals and ornaments; consumer goods and home appliances; and forestry and construction.[1]
Examples include virgin coconut oil, mineral water, Langkawi-made chocolate, retort products, crystal products and homemade soap. The proposal also retains recognisable categories such as anchovies, dried stingray products, cement and marble. It is a specified product-list proposal, not duty-free treatment for everything bought or shipped from the island.[1]
The underlying framework
The Budget’s current-position section identifies item 76 of the Customs Duties (Exemption) Order 2017 as the provision for direct movements of Langkawi-origin products into the Principal Customs Area, subject to its prescribed conditions.[1]
The original 2017 order, P.U. (A) 445/2017, took effect on 3 January 2018. Its item 76 names the importer as the exempt person and requires the Director General to be satisfied that the goods originate in Langkawi and are imported directly from there. The certificate column names the importer, with a waiver only for imports by a bona fide traveller. These are the original provisions, not a consolidated statement of every later condition.[3]
The original list is not the complete later legal history: the Customs Duties (Exemption) 2017 (Amendment) (No. 2) Order 2022, P.U. (A) 80/2022, added dried stingray products to item 76 from 1 April 2022.[4]
Planning implications
For groups sourcing island-manufactured products, the proposal concerns the product coverage of this origin-based route, not a general duty-free entitlement. It is distinct from Appendix 32’s visitor allowance. The proposed January start is not an operative entitlement today. Groups should separate prospective sourcing decisions from existing claims: this report does not certify every subsequent amendment or the final implementing conditions.[1]
Official sources
- [1] Budget 2027 Tax Measures — Appendices 31–32
Ministry of Finance Malaysia · Document date: 2026-10-09
Full Appendix 31, printed/PDF pages 42–43 (zero-based 41–42), all six proposed categories/listed goods and proposed1January2027start, and full Appendix32 page44 text read. All36contents headings read, not whole business-tax package. Current-position statement is attributed to Budget; not independently certified complete current exemption chain.
- [2] Speech: The Fifth MADANI Budget 2027
Ministry of Finance Malaysia · Document date: 2026-10-09
Header dated9October2026 names Prime Minister/Finance Minister Anwar Ibrahim and DewanRakyat; paragraph177 wider Langkawi-made goods exemption distinguished from visitor purchase allowance. 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
Actual822710byte78-pagePDF ordinary exact originalGET200. Cover29December2017; full English paragraphs1–5 pages4–5 and entire PartIitem76 table across printed/PDF39–40(zero38–39), all21originalgoods, person/origin/direct-import/certificate columns text-read and real pdftoppm pixels visually inspected. Importer certificate waiver only bona fide traveller. No25%or ex-factory definition appears in originalitem76. Historical original, not a consolidated October2026 certification. Intermediate(xxii) and residual later chain not certified.
- [4] Customs Duties (Exemption) 2017 (Amendment) (No. 2) Order 2022 — P.U. (A) 80/2022
Attorney General’s Chambers / Royal Malaysian Customs Department · Document date: 2022-03-30
Full three-page original: gazette date, paragraphs 1–2 in Malay and English; made 21 March 2022, published 30 March, effective 1 April, insertion of item 76(xxiii) dried stingray products.