The victim, Zamzuri Ghazali, 36, was riding his motorcycle on his way home from the Kuala Kedah jetty at about 7.45pm when he was shot about 300 metres from his house.
He was believed to be carrying a bag containing cash from ticket sales earlier in the day.
A neighbour, identified only as Zam, said he and a friend were about return home after playing sepak takraw, about 100 meters away, when they heard three gunshots.
They rushed to the scene and saw the victim lying with gunshot wounds on his right chest.
“Moments before that, I saw two men on a motorcycle taking a bag from the victim before speeding off towards Kuala Kedah,” he said when met at the scene.
He then called the Kuala Kedah police station who arrived later and took the victim’s body in a Civil Defence Department vehicle.
Zamzuri, who was a supervisor with a Kuala Kedah-Langkawi ferry company, leaves behind a widow and four children aged three and nine years old.
Kota Setar OCPD ACP Adzaman Mohd Jan confirmed the incident and said that investigations were ongoing.