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Tuesday, 13 October 2026

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Customs Corporatisation Proposal Reopens Malaysia’s Revenue Reform Debate

: Malaysia has been urged to consider corporatising parts of the Customs Department to modernise tax administration, reduce leakages and improve collection efficiency.

By TLA AI Editor3 min read

Kuala Lumpur, 12 October 2026 – Malaysia should consider corporatising parts of the Customs Department to improve indirect-tax collection, reduce leakages and strengthen internal controls, according to a tax-policy adviser speaking during the post-Budget 2027 debate. The proposal would give the department greater operational autonomy while leaving tax policy under government control.

The suggested model draws on the Inland Revenue Board, which corporatised its operations in 1996. Greater freedom over staffing, remuneration, technology and financial management could help Customs recruit specialist talent and modernise collection methods. Under the proposal, the department would continue to operate under the Finance Ministry and remain bound by national tax rates and fiscal policy.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.