There are a few duty free islands in Malaysia. They are mainly Langkawi Island, Labuan, Tioman Island, Pangkor Island and Pulau Satu.
1. Langkawi (Kedah)
A favorite among tourists and locals alike, Langkawi was declared a duty-free island on January 1, 1987. You’ll find great deals on chocolates, liquor, tobacco, kitchenware, souvenirs, and more – especially in Kuah and Pantai Cenang. Many shops offer discounts ranging from 25% to 75% on popular items. Locals confirm alcohol and chocolates are noticeably cheaper, though caution shoppers to be careful of potential rip-offs.
2. Labuan (Federal Territory)
An offshore island near Sabah, Labuan earned its duty-free island status on September 1, 1956. It’s a long-established hub known for duty-exempt shopping- especially for alcohol and tobacco.
3. Tioman (Pahang)
Tioman Island, off the east coast of Pahang, was declared duty-free on September 1, 2002. The main village, Kg Tekek, includes a duty-free shop where visitors often buy discounted alcohol and chocolates.
4. Pangkor (Perak)
Of course, Pangkor Island joined the list of duty-free destinations on January 1, 2020.
5. Pulau Satu (Forest City, Johor)
A new entrant slated to join the list: Pulau Satu, an artificial island in Forest City, was recently passed into law to become a duty-free island through amendments made in mid-2024. It will join the existing lineup (Labuan, Langkawi, Tioman, and Pangkor) and probably follow a stay-minimum rule like the others (e.g., two-day minimum) for duty-free purchases.
Here is a quick overview of the duty free island in Malaysia.
| Island | State | Duty Free start date |
| Labuan | Sabah | 1 Sept 1956 |
| Langkawi | Kedah | 1 Jan 1987 |
| Tioman | Pahang | 1 Sept 2002 |
| Pangkor | Perak | 1 Jan 2020 |
| Pulau Satu, Forest City | Johor | Gazetted in mid 2024 |
Beyond Pangkor, duty-free shopping in Malaysia takes you from the long-running charm of Labuan and Langkawi, to the natural allure of Tioman, and now – entering the scene – a futuristic dash with Pulau Satu. If you’re mapping out an island-hopping shopping spree, you’ve just got yourself a taste of Malaysia’s most budget-friendly escapes.
