Malaysia’s Budget 2023 (Bajet 2023) will be tabled by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in parliament at 4.00 pm today, three weeks earlier than the originally scheduled date of October 28. As always, we will be monitoring the finance minister’s speech for any automotive-related matters.

Last year’s Budget tabling was particularly interesting for the local EV industry, with the government announcing at the time that EVs would be exempted from import and excise duties as well as road tax for a limited time.

This year, expectations are that these EV incentives be extended beyond their original deadlines – 100% duty exemption for CBU EVs up to December 31, 2023, and 100% duty exemption for CKD EVs up to December 31, 2025. The ministry of international trade and industry (MITI) said previously that it had proposed more EV incentives to be included in Budget 2023, but we’ll have to wait until later to find out.

In addition to automotive-related matters, we’ll also look out for public transport and infrastructure news. Live updates will be posted here, so stay tuned. What are you hoping for in this year’s Budget?

MyPSV programme

  • Government will bear the cost of licenses for taxi, bus and e-hailing
  • Government will bear the cost of riding test for B2 motorcycle category (below 250 cc)

    Public transport – stage buses

  • RM180 million for stage buses in Melaka, Kota Kinabalu and Kuching
  • Replacement for 18 MARA stage buses in Kedah
  • Public transport – subsidised My50 monthly travel pass extended for one year

    OKU assistance – RM10 million in e-hailing vouchers

    One-off grant for SMEs and registered taxi drivers – RM1 billion allocated

    50% excise duty exemption for CKD vehicles used in the tourism industry

    Flood prevention – Rancangan Tebatan Banjir, a long-term strategy (till 2030), RM15 billion allocated

    “Green technology” acquisition and setting up EV infrastructure, RM330 million allocated

    Collaborative Research in Engineering, Science and Technology centre (CREST) – to develop apps based on RFID and Bluetooth for the automotive industry. RM10 million allocated

    RM510 million to improve road network to Pengerang, Johor

  • Overtaking lane on Senai-Desaru Highway
  • Upgrades to the PLUS at Senai Utara-Pandan
  • Motorsport – RM20 million to build drag racing tracks

    Infrastructure projects – RM16.5 billion allocated

  • Pan Borneo Highway (completing soon in Sarawak, by 2024 in Sabah)
  • Central Spine Road
  • RTS Link
  • ECRL
  • Gemas-JB double-track project
  • Repair and maintenance of government assets – RM11.4 billion allocated, including for federal roads

    MRT3 – RM50.2 billion allocated

  • Completes KL’s rail network, 50.8 km route
  • Phase 1 (2028), Phase 2 (2030)
  • RM3.3 billion expected to be spent in 2023
  • Rural infrastructure

  • Roads and village connection, RM1.5 billion allocated
  • 500 km of roads, to benefit 110,000 people
  • RM123 million for kampung street lamps, 6,800 units
  • RM54 million to build 85 new bridges
  • RM5.2 billion for state roads under MARRIS, state governments can access this fund
  • BRT network for Johor, RM80 million allocated

    Gentari by Petronas

  • Installation of solar panels at government and private facilities
  • 500 units of EV chargers nationwide
  • TNB – RM165 million allocated

  • Solar rooftops and EV chargers
  • Electric vehicles (EV)

  • Import and excise duty exemption for CBU EVs extended to December 31, 2024 (one-year extension)
  • Approved permit (AP) fee exemption for the import of EVs, till December 31, 2023
  • For manufacturers of EV charging equipment: 100% income tax exemption from YA 2023 to 2032
  • For manufacturers of EV charging equipment: 100% investment tax allowance (Elaun Cukai Pelaburan)
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