Malaysia has ended its long-standing duty-free gold regime, slapping a 10% customs tax on physical gold bars that meet London Bullion Market Association standards. The new policy, announced by Bank Muamalat Malaysia Berhad on May 18, takes effect June 8, 2026.
For investors, the impact is immediate and stark. A standard one-kilogram LBMA gold bar priced at approximately RM450,000 will now carry an additional RM45,000 in import duties.
The tax specifically targets 99.99% pure gold bars, the internationally recognized standard used by central banks and institutional investors. Non-LBMA gold savings products appear exempt, creating a two-tier market where internationally traded bullion carries a heavy premium.
Banks offering LBMA-standard gold will pass the cost directly to consumers, widening the spread between Malaysian gold prices and international spot rates. Malaysia's previous duty-free status made it a regional hub for gold transactions, supported by Islamic banking infrastructure from institutions like Maybank and CIMB.
The shift raises questions about a potential quality downgrade in Malaysia's gold market as investors may rotate into lower-purity, non-taxed alternatives.