Budget 2020 – all auto and transport-related points

The Malaysian Budget 2020 (Bajet 2020) will be tabled by finance minister Lim Guan Eng at 4.00 pm today. Stay tuned for possible news on related items such as tolls, fuel prices, public transport, road networks, etc – we will be posting live updates on any automotive- and transport-related announcements made in his speech here.

UPDATE: Story now contains all relevant transport/auto-related points covered in the Budget.

Toll collection

  • A minimum reduction of average toll charges by 18% discount will be introduced across all PLUS highways. This is expected to save North South Highway users up to RM1.13 billion next year, and a total of RM43 billion over the entire concession period until 2038.
  • The toll rate for the Second Penang bridge will be reduced to RM7 from RM8.50 from January 1, 2020.
  • The cabinet has approved the proposed offer to acquire four Klang Valley highways – the Shah Alam Expressway (KESAS), Damansara-Puchong Expressway (LDP), Sprint Expressway and SMART Tunnel – to be funded via government-guaranteed borrowings.

    The government says the introduction of congestion charges that will be lowered by up to 30% of the present toll rates during near peak and normal hours and free during off-peak hours will provide a savings to the highway users nearly RM180 million a year, or RM2 billion over the respective concession periods.


Petrol subsidy programme (PSP)

  • The recently-announced RON 95 subsidy scheme will be introduced in Peninsular Malaysia in January 2020. The petrol subsidy programme (PSP) will have two eligible categories.

    The first is for eligible recipients of the cost of living aid (BSH) – the petrol subsidy receivable will be RM30 per month for car owners and RM12 per month for motorcycle owners. This subsidy will be in the form of cash transfer, deposited into the recipient’s bank account every four months. The first payment will be made in April 2020.

    The second covers all other motorists who are not BSH recipients – they will receive a special Kad95 which will allow them to enjoy subsidy on RON 95 petrol at a discount of 30 sen per litre, limited to 100 litres per month for cars or 40 litres per month for motorcycles. The Kad95 will be implemented progressively during the first quarter of 2020.

    Once the PSP is introduced, RON 95 retail prices will be gradually floated. The fuel subsidy will kick-in whenever the RON 95 market price, determined by the Automatic Pricing Mechanism (APM) is above RM2.08 per litre but no fuel subsidy will be given when the market-determined APM price falls below RM2.08 per litre.

  • RM2.2 billion has been allocated for the PSP, which will benefit more than eight million motorists.

B20 biodiesel

  • The government will implement the use of biodiesel B20 for the transport sector, starting from the end of 2020. Expected volume is 500,000 tonnes a year.


  • RM1 billion will be spent to improve roads in the country, with RM326 million being allocated for Sabah and RM224 million for Sarawak.
  • Work continues on the Pan Borneo Highway, but the government says that it has saved RM1.2 billion in costs for the project.
  • RM50 million will be allocated for the repair and maintenance of roads leading to Port Klang.

Autonomous vehicle pilot project

  • The government will set up a contestable grant fund to spur more pilot projects on digital applications, which will also include autonomous vehicles.

Public transport

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  • The government intends to invests RM450 million to acquire up to 500 electric buses of various sizes for public transport in selected cities nationwide.
  • The government will further support last-mile connectivity in rural and urban areas by subsidising bus operators with an allocation of RM146 million next year.


  • The government intends to proceed with the Rapid Transit System (RTS) between Johor Bahru and Singapore. No timeline for its implementation was given.
  • The rail tracks from Gorge Line between Halogilat Station to Tenom Station in Sabah will be upgraded at a cost of RM50 million

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