Kuala lumpur: The Langkawi Development Authority (LADA) is working to help small and medium enterprise (SME) entrepreneurs expand their markets beyond the island by addressing double taxation issues affecting their competitiveness. Its chief executive officer Datuk Seri Iskandar Mohd Kaus said the matter was among issues raised during an engagement session between Finance Minister II Datuk Seri Amir Hamzah Azizan and representatives of Langkawi's entrepreneurial sector recently.
According to BERNAMA News Agency, one of the key concerns was that goods brought into Langkawi were subject to tax, while products processed in the duty-free island and later marketed outside Langkawi were also taxed, resulting in higher operating costs for entrepreneurs. 'This situation affects the entrepreneurs' competitiveness. LADA has therefore been tasked by the Finance Minister II to work with the Tax Division of the Ministry of Finance (MOF) and the Royal Malaysian Customs Department (JKDM) to review the issue and help entrepreneurs offer more competitive prices,' Iskandar told Bernama recently.
Iskandar said LADA would hold further discussions with industry players to identify the challenges in detail before submitting proposed solutions to the MOF and JKDM. He said all relevant parties had been instructed to study and resolve the matter as soon as possible as it directly affected the sustainability of SME businesses on the island.
Iskandar said LADA viewed entrepreneurship development as a key agenda in strengthening Langkawi's economy, which should not rely solely on tourism. 'When tourist arrivals decline due to external factors such as conflicts in the Middle East, we need to ensure small and medium entrepreneurs have opportunities to generate income by marketing their products to wider markets while continuing to create job opportunities,' he said.
On efforts to expand market access, Iskandar said products produced by Langkawi entrepreneurs, particularly handicrafts, should not depend solely on purchases by tourists visiting the island. He said LADA would review related incentives with the relevant ministries and agencies, while strengthening the role of the Langkawi Craft Complex in promoting local products.
'We want to provide entrepreneurs with opportunities to market and export their products to the peninsula and other markets. However, this effort faces challenges due to double taxation issues that must be resolved through cooperation among all relevant agencies,' he said. He said resolving the tax issue would not only enhance competitiveness but also reduce entrepreneurs' reliance on the local tourism market and create more sustainable business opportunities at the national level.