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flag Malaysia will cap duty-free car imports at RM300,000 starting Jan. 1, 2026, ending tax loopholes for luxury vehicles.

flag Starting January 1, 2026, Malaysia will limit duty-free car purchases in Langkawi and Labuan to vehicles worth RM300,000 or less, ending a loophole that allowed wealthy individuals to avoid import taxes on luxury cars like Ferraris and Porsches. flag Prime Minister Anwar Ibrahim announced the change to prevent abuse of the tax exemption program, which was intended for local residents, not Peninsular Malaysians seeking tax advantages. flag The policy targets high-end models while allowing affordable performance vehicles to remain eligible. flag The move is part of the 2026 federal budget, which also includes funding for infrastructure, flood mitigation, and public health initiatives.

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