Malaysia proposes, not yet in force: RM10,000 duty-free limit for tourists leaving Langkawi and Labuan from 1 January 2027
This change is proposed and is not law. The rules below describe what would change if it is adopted.
This page records one dated change. For the rules in Malaysia as they stand today, see the Malaysia guide →
- Jurisdiction
- Malaysia
- Tax
- Sales tax
- Change type
- Threshold
- Status
- Proposed
- Impact
- Watch
- Announced
- 9 October 2026
- Effective
- 1 January 2027
- Authority
- Ministry of Finance Malaysia
- Systems
- POS, Customs
- Verified
- Fetched from official source · high confidence
Tourists leaving the Duty-Free Islands of Langkawi and Labuan with goods, and retailers on those islands.
No action - monitoring only.
POSCustoms
Malaysia's Budget 2027 tax measures (tabled 9 October 2026) propose raising the goods value limit eligible for import duty and sales tax exemption for tourists bringing goods out of the Duty-Free Islands of Langkawi and Labuan to RM10,000 for all new goods except tyres and tubes, alcoholic beverages, cigarettes, tobacco products, smoking pipes and electronic cigarettes/vapes, with a 48-hour visit duration, from 1 January 2027. Tioman, Pangkor and Pulau 1 Forest City treatment is maintained. Current limits are RM1,000 for general goods (RM150 food items, 3 pairs apparel, 1 pair footwear).
What changed in detail
This is a Budget proposal, not law. The Budget 2027 tax measures, tabled on 9 October 2026, propose raising the goods value limit eligible for import duty and sales tax exemption for tourists bringing goods out of the Duty-Free Islands of Langkawi and Labuan to RM10,000. It would apply to all new goods except tyres and tubes, alcoholic beverages, cigarettes, tobacco products, smoking pipes and electronic cigarettes and vapes, with a 48-hour duration of visit, from 1 January 2027.
The current limits are RM1,000 for general goods, with RM150 for food items, three pairs of apparel and one pair of footwear. Treatment of Tioman, Pangkor and Pulau 1 Forest City is maintained.
The proposal needs exemption orders to take effect.
What it means
Until the orders are made, the existing limits continue to apply. Island retailers and travel businesses can plan for the higher limit, but should not treat the 1 January 2027 date as confirmed until the exemption orders are published.
Proof
To further boost the tourism sector in Duty-Free Islands, it is proposed that the value limit for goods eligible for import duty and sales tax exemption as well as the duration of visit be revised as follows:
Source snapshot of the official page. Open full size ↗