Langkawi and Labuan to see RM10,000 duty-free limit in Budget 2027

Under Malaysia's Budget 2027, the duty-free shopping allowance for Langkawi and Labuan will be increased to RM10,000, effective 1 January 2027. Prime Minister Anwar Ibrahim stated the measure aims to boost tourism on these islands.

To qualify for the higher allowance, visitors must stay for a minimum of 48 hours. While Langkawi's minimum stay requirement remains unchanged, Labuan's requirement will increase from 24 hours to 48 hours. The RM10,000 limit applies to most new goods, though specific exclusions include tobacco, alcohol, cigarettes, e-cigarettes, and tires or tubes.

To further support tourism, the budget includes matching grants for international and charter flights, targeting new routes from China, India, Central Asia, and Europe. These grants will also extend to cruise ships, ferries, and tour buses. Additionally, more products manufactured in Langkawi will be exempt from import duties to support local entrepreneurs.