Cyberjaya: The government will study the proposal to restore Langkawi's duty-free status as a move to revitalise the island's economy, which is currently facing challenges from rising costs and a decline in domestic tourism attraction. Prime Minister Datuk Seri Anwar Ibrahim said the proposal deserves attention as Langkawi's tourism sector has been a bit sluggish lately.
According to BERNAMA News Agency, Prime Minister Anwar highlighted the necessity of the proposal and has tasked Minister of Finance II, Datuk Seri Amir Hamzah Azizan, with evaluating the potential benefits of reinstating the duty-free status. He emphasized that the high costs in Langkawi are deterring tourists, including domestic visitors, and a comprehensive review is needed to rejuvenate the island's appeal.
Anwar also acknowledged the initiative of Sultan of Kedah, Al Aminul Karim Sultan Sallehuddin Sultan Badlishah, who initially proposed the measure. The Prime Minister expressed his administration's willingness to consider the Sultan's views, stating, "This means we are prepared to study the matter and respect the views of Tuanku Sultan of Kedah, and we will examine it."
The proposal comes after Sultan Sallehuddin's call on April 13, during the opening ceremony of the Kedah State Legislative Assembly, where he urged the Federal Government to consider restoring Langkawi's duty-free privileges to boost the local economy and tourism sector.
In a related development, Anwar addressed concerns regarding the stringent conditions imposed on electric vehicle (EV) companies. He indicated plans to discuss these issues with the Ministry of Investment, Trade, and Industry (MITI), following remarks from Perak Tourism, Industry, Investment and Corridor Development Committee chairman Loh Sze Yee. Loh had raised concerns that these conditions might deter foreign investors and negatively impact Malaysia's investment image.
Loh specifically pointed out the halted construction of an EV assembly plant by BYD in Tanjung Malim, citing the company's struggle to comply with new MITI requirements as a contributing factor. The inactive status of the site underscores the need for policy reassessment to enhance investor confidence.