Langkawi Duty-Free Review Signals Govt Concern For Island Economy – PPIPL

ALOR SETAR, April 19 (Bernama) -- The government’s willingness to review proposals to restore Langkawi’s full duty-free status reflects its concern and commitment to revitalising the economy of the resort island, according to the Langkawi Tourism Industry Players Association (PPIPL).

Welcoming the move, PPIPL chairman Raseli Yahya said it was a positive signal that the government remained committed to ensuring Langkawi retained its standing as one of the country’s premier tourism destinations.

“We appreciate Prime Minister Datuk Seri Anwar Ibrahim’s concern in recognising the current challenges faced by Langkawi’s tourism industry, including rising operating costs and declining appeal among domestic tourists,” he said in a statement today.

Raseli also expressed appreciation for the call by the Sultan of Kedah, Al-Aminul Karim Sultan Sallehuddin Sultan Badlishah, which sparked renewed discussion on the matter. He described the synergy between national leadership and the royal institution as significant in shaping the best solution for the people and the industry.

He said PPIPL viewed the review as a timely step and hoped it would also consider measures to strengthen Langkawi’s competitiveness, including costs, tourist experience and the sustainability of the local economy.

“We are fully committed to working with ministries and relevant agencies by providing industry input and field data to support the evaluation process. We hope the outcome will lead to strategic measures that can accelerate the recovery of Langkawi’s tourism sector,” he said.

Langkawi was declared a duty-free island on Jan 1, 1987, helping transform it into one of Malaysia’s most popular shopping and holiday destinations.

However, on Jan 1, 2021, duties were imposed on cigarettes and tobacco products, meaning the island no longer enjoyed fully duty-free status.

Echoing PPIPL’s view, Langkawi People’s Welfare Organisation adviser Nor Saidi Nanyan also welcomed the Prime Minister’s concern and hoped the review would include longstanding ferry service issues affecting the island.

“Basic issues such as inconsistent ferry services, limited schedules and passenger discomfort continue to affect the main link between Langkawi and Kuala Kedah as well as Kuala Perlis,” he said.

He added that ferry services operated by Langkawi Ferry Line Ventures Sdn Bhd remained heavily relied upon, but instability in operations, limited schedules and passenger comfort issues had significantly affected the tourism industry.

Meanwhile, Kedah Tourism, Culture and Entrepreneurship Committee chairman Datuk Salleh Saidin said restoring Langkawi’s full duty-free status would further boost tourism on the island.

He said the sector had shown positive recovery, with tourist arrivals last year surpassing three million for the first time since the COVID-19 pandemic.

Official data from the Langkawi Development Authority (LADA) showed arrivals fell to 1.09 million in 2021, before rising to 2.58 million in 2022 and 2.81 million in 2023. The figure increased to 2.91 million in 2024 and 3.22 million in 2025 during Visit Kedah Year 2025.

“The surge in tourist arrivals would multiply if full duty-free status is restored because from the very beginning, that has been Langkawi’s image, identity and original strength,” he said, adding that the island had never lost its charm as a premier tourism destination.

-- BERNAMA