Budget 2022 – all auto and transport-related points

Budget 2022 – all auto and transport-related points

Malaysia’s Budget 2022 (Bajet 2022) will be tabled by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in parliament at 4pm today. As with previous editions, we will be monitoring the finance minister’s speech for any automotive- and transport-related matters.

It was previously said that initiatives to strengthen the local electric vehicle (EV) industry and green technology ecosystems are to be announced in Budget 2022, in line with the low carbon mobility objectives and green mobility agenda outlined in the recently-revealed 12th Malaysian Plan (RMK-12). Will there be incentives and carrots for EV makers and us consumers?

We’ll also be on the look out for public transport and infrastructure news. Live updates will be posted here, so stay tuned.

Child seat purchase subsidy

  • 50% subsidy up to RM150.
  • RM30 million allocation to benefit 188,000 people in the B40 category.
  • Free road tax (Lesen Kenderaan Motor) for OKU

    SST exemption extended till June 30, 2022 – full story here

  • Same terms: 50% sales tax exemption for CBU imports, 100% for CKD locally assembled passenger cars, MPVs and SUVs
  • Tenang insurance voucher for B40

  • Under Program Baucar Perlindungan Tenang, B40 category receives RM50 voucher for the purchase of life and PA insurance. For next year, this is increased to RM75.
  • Voucher can be used to buy comprehensive insurance for motorcycles below 150cc, from January 1, 2022.
  • Public transport

  • RM80 million allocation for the Dana Bantuan Sementara Bas Henti-henti to benefit stage bus drivers.
  • RM115 million allocation for unlimited bus and rail travel pass, RM50 per month My50 pass for Klang Valley commuters.
  • Subsidy for operations costs of less economic train services in rural areas.
  • Continuation of the Pas MyRail5 initiative for students.
  • Tax and duty exemptions for EVs – full story here

  • To support the local EV industry, government proposes full exemption for import duty, excise duty and sales tax for EVs.
  • 100% road tax exemption for EVs.
  • Individual income tax exemption up to RM2,500 for the purchase, installation, rental, lease and subscription for EV charging.
  • Rural infrastructure

  • Government has allocated over RM2.5 billion for rural infrastructure development.
  • Almost RM1.5 billion allocation for 519 km of rural roads and village connection roads, will benefit over 130,000 people.
  • RM107 million to install 7,000 units of street lamps for rural roads, maintain over 500,000 street lamps for rural roads, upgrade 20 bridges as well as early works for 30 new bridges.
  • Of the overall allocation, majority RM1.5 billion is for rural infrastructure in Sabah and Sarawak.
  • Major road projects

  • Government to continue major road infrastructure projects worth RM3.5 billion, including Pan Borneo Highway and the Central Spine Road.
  • JPJ services

  • JPJ will set up 20 mobile counters to serve rural population.
  • To provide access to government services outside of office hours, 100 kiosks with full computer facilities will be set up at UTC outlets. This will make JPJ transactions such as road tax renewal easier.
  • Innovation and autonomous vehicles

  • RM30 million for the implementation of Innovation Hub: Fourth Industrial Revolution (Hab Inovasi: Revolusi Industri Keempat) under Technology Park Malaysia as a one-stop centre for the innovation ecosystem. This is for the development of new technology clusters such as drones, robotics and autonomous vehicles. This hub is expected to benefit 10,000 future entrepreneurs.
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    Danny Tan

    Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.



    • Greatttt….EV Roadtax, import duty and excise duty are now free, and must be forever. Now people can afford to buy electric cars anytime.

      Like or Dislike: Thumb up 6 Thumb down 0
    • Susukotak on Oct 29, 2021 at 7:37 pm

      Jpj service should be online not by mobile counter or kiosk. Some may experienced how the kiosk perform. Very slow and not user friendly.
      Some country already serve online from changing address to renew road tax. The hardcopy can be send thru pos malaysia. This provide anotger service for pos/courier.
      Extra officer can do enforcement better.

      Like or Dislike: Thumb up 2 Thumb down 0
    • dcameron on Oct 30, 2021 at 12:20 am

      More EV probably translated to less fuel subsidy and increase in electricity bill.
      TNB smiling since electricity pricing tiers means the more you consume, the costlier the price going to be. EV or not, you still gotta pay.
      Maybe it will be good for the environment so long energy production is from clean source.

      Like or Dislike: Thumb up 2 Thumb down 0
    • Rakyat Malaysia on Oct 30, 2021 at 10:31 am

      Syukurrr keta lagi murah. Siram siirrraamm…

      Like or Dislike: Thumb up 4 Thumb down 0
    • Azkaban on Oct 30, 2021 at 7:49 pm

      Roadtax this year diskaun la sikit, not need to wait for EV. Car not fully utilise for both years.

      Like or Dislike: Thumb up 0 Thumb down 0

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