LANGKAWI: Quieter posh restaurants and vacant prime retail lots are among the aftereffects of the end of the duty-free perk for supercars here.
The loss of this niche attraction that once drew ultra-high-net-worth people has taken some shine off the archipelago’s allure.
“Supercar lovers used to book hotel rooms as a group, dine out and go on joy rides around the island,” said Mohamad Azhar Mohd Jamil, a veteran in Langkawi’s supercar sales and servicing.
He said it took only a few months for islanders to feel the loss of the small but wealthy group of regular visitors.
“Their cars just sit in our garages now. The owners seem to have lost interest in coming and it affects everyone from hotels to small tourist attraction operators,” Azhar said in an interview.
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Used and new supercars below RM300,000 remain duty-free, but Azhar said dealers are no longer allowed to display them in showrooms.
“We used to rent shoplots in prime locations for the rich to drop by and view the cars. Now we can’t and there are not many businesses with the margins to take over those vacant shops.
“Potential buyers are not keen on coming to garages on the outskirts to view cars,” he said.
Luxury vehicles valued above RM300,000 in Langkawi and Labuan no longer enjoy vehicle tax exemptions from this year.
Supercars such as Ferrari, Lamborghini and Porsche which used to cost less than RM2.5mil now cost about RM5mil or more.
Azhar hopes the government will review the policy.
“We are just asking for some flexibility or even a partial reinstatement so we can continue operating,” he said.
Holiday Villa Beach Resort and Spa Langkawi sales and marketing director Norsidah Ahmad said her team had yet to measure the loss of this group of well-heeled clientele, but their absence was felt.
She said the island had long attracted affluent travellers, luxury car enthusiasts and owners’ club members.
They combined vehicle purchases with their holidays.
“Without the duty-free status on supercars, opportunities to host automotive club events that generate hotel room nights may be declining,” she said.
Norsidah said while the groups were small and usually discreet, they were high-spending visitors.
Industry veteran Ong Seng Aun, who runs a specialised business storing and maintaining supercars, said the impact was almost immediate.
“We have lost more than 50% of our income,” he said.
He said dealers were now managing only reconditioned vehicles worth below RM300,000 and many specialised garages were empty.
Ong said he used to have as many as 300 luxury cars in storage.
Now he has fewer than 100.
“Many owners have taken back their cars,” he said.
Ong, who has more than 20 years’ experience, said related sectors such as vehicle transport and maintenance had ground to a halt and many skilled workers had to find other work.
