After the announcement of a temporary sales tax exemption for passenger vehicles by prime minister Tan Sri Muhyiddin Yassin, several queries were received from Malaysian motorcyclists if this applied to two-wheelers as well. The answer is, no, the tax exemption to stimulate the Malaysian economy after the movement control order (MCO), slated to run till from June 15 until December 31, 2020, does not apply to motorcycles.

However, motorcycles and scooters in Malaysia with engines below 150 cc in displacement do not attract sales tax. This means for the small motorcycle market, riders were already enjoying relief from sales tax on new machines.

Therefore, for the Malaysia two wheeler market in general, no price adjustments are expected. For passenger cars in Malaysia, there is a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models for the period mentioned.