LANGKAWI: Super car owners spend as much as RM400,000 each when they return to enjoy their vehicles.
Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor said restoring Langkawi’s full duty-free status could revive the island’s high-end tourism sector.
He said more than 2,000 luxury super cars were once kept on the island by wealthy owners from around the world, creating a wide economic chain.
According to the Darul Aman Information Secretariat on Thursday (April 30), Sanusi said the owners would return periodically to drive their vehicles, spending heavily during their visits.
“They come and spend big.
“Luxury car operators told me that annual sales were around 250 units. Each time the owners came to Langkawi, they spent up to RM400,000 each. This contributed to the local economy and government revenue,” he said.
Sanusi said the owners also needed car showrooms, sales centres, storage warehouses, special garage facilities and luxury vehicle service centres.
He said this at the presentation of appointment letters to 118 Langkawi village heads for the 2026-2028 term.
Sanusi said the withdrawal of duty-free status for luxury cars had hurt the sector, with the exemption now limited to vehicles valued below RM300,000.
“When the facility was withdrawn, we lost a major segment of high-spending tourists,” he said.
He said one reason cited for the withdrawal was the failure of some owners to bring vehicles back to Langkawi after taking them to the mainland.
However, he said this could be handled through stricter enforcement, including higher bonds and heavier penalties.
“There are laws for cars being taken out of the island. I believe Customs can manage this.
“Enforcement should be tightened, not the duty-free privilege withdrawn,” he said.
Sanusi said the luxury car industry generated direct income, skilled jobs and supported other sectors, including property through the Malaysia My Second Home programme.
He said Langkawi had many attractions, including its natural beauty and shopping, but duty-free cars had been among the sectors drawing high-value spending.
“I was informed that tax for taking vehicles out and bringing them back into Langkawi reached RM150mil a year.
“This luxury car sector will become active again if buyers can enjoy duty-free status.
“When this segment is restricted, we lose a major source of income for Langkawi and the country,” he said.
Sanusi said the matter should be resolved in line with the decree by the Sultan of Kedah for the list of duty-free goods to be expanded to restore Langkawi’s position as a leading tourism destination.
He said luxury tourism, including five- to seven-star hotels, remained active in Langkawi, although budget hotels, homestays and backpacker accommodation had been affected, partly due to limited ferry services.
On April 13, Sultan Sallehuddin Ibni Almarhum Sultan Badlishah called on the Federal Government to fully restore Langkawi’s duty-free island status when opening the Kedah state assembly sitting.
The Ruler said while the island’s duty-free status remained, several previous privileges had been reduced, including exemptions involving vehicles and certain goods.
Prime Minister Datuk Seri Anwar Ibrahim later said the Federal Government would study the matter, including directing Finance Minister II Datuk Seri Amir Hamzah Azizan to carry out a detailed review on reviving Langkawi’s economy.
