LANGKAWI: The government could restore the duty-free status for high-priced vehicles here while tightening rules to prevent abuse, an industry player suggested.
The previous system could be improved instead of scrapped, said Kedah Chamber of Commerce and Industry committee member Edison Ooi.
He proposed raising the bank guarantee required before duty-free vehicles are taken to the mainland, giving the Royal Malaysian Customs Department greater financial security if owners fail to return them to the archipelago.
Cars imported duty-free into Langkawi can be used on the mainland for up to 90 days a year.
Ooi said the government should revise the duty payment formula to encourage owners to legalise their vehicles earlier instead of waiting years for the payable amount to fall as the vehicles depreciated.
Previously, buyers of cars – some priced in the millions of ringgit – would have them imported into Langkawi and then keep the vehicles there for many years until their value depreciated before bringing the cars to the mainland permanently as a “used” vehicle to pay lower duties.
Under Budget 2026, the government removed duty exemptions for vehicles valued at more than RM300,000 in Langkawi and Labuan, ending a long-standing incentive that had attracted a niche group of ultra-high-net-worth supercar lovers to Langkawi for holidays.
Ooi, who has a business providing specialised garage services and supercar maintenance, said the chamber could cooperate with Customs to identify duty-free vehicles used on the mainland for longer than 90 days.
“The industry is prepared to work closely with the government while ensuring businesses and their workers can continue to earn a living,” he said.
Self-employed vehicle transporter Mohd Salleh Mohamad said the slowdown had badly eroded his livelihood.
He said he used to make 10 to 15 trips a month before the incentive was abolished.
“Now I am lucky if I get two trips a month. I need at least RM5,000 monthly just to cover my lorry’s instalments and maintenance.
“It’s so hard now to keep my business going.”
Vehicle transporters Mohamad Syafiq Mohamad Fadzli and Muhamad Subri Mohd Shafie said they too have seen a sharp drop in work since the policy change, making it harder to support their families and service loan repayments.
