Budget 2023 – all auto and transport-related points

Budget 2023 – all auto and transport-related points

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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    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.

     

    Comments

    • Copy Paste on Oct 07, 2022 at 12:17 pm

      Copy paste :Hope our FM will take heed the callous and loose attitudes of GB Kwasi in irresponsible management of the nation economy. Whatever budget does not need to be all people friendly but has to be prudent. The people as well should not make or expect foot loose goodies or fantastic promises. One that makes these promises should be kept far away from seat of power.”

      Like or Dislike: Thumb up 9 Thumb down 2
    • @Snakebabu on Oct 07, 2022 at 12:48 pm

      Should’ve done this 10 years ago.

      Like or Dislike: Thumb up 3 Thumb down 6
      • Rakyat Malaysia on Oct 07, 2022 at 6:15 pm

        Tenkiu, trims kaseh, xie xie, rumba nandri from all patriotic rakyat Malaysia to a generous and caring budget from kind and caring gomen! Bestest in da world! All patriotic rakyat will remember this magnanimous gesture come GE15. Only nonpatrotics tak kesah can GTH!

        #BetterNation
        #KeluargaMalaysia
        #Malaysia4PatrioticRakyatMalaysia

        Like or Dislike: Thumb up 14 Thumb down 4
    • John Dough on Oct 07, 2022 at 12:59 pm

      Remove excise tax la hello, already 50 years since proton and Perodua.

      No need protectionism anymore.

      Like or Dislike: Thumb up 14 Thumb down 38
      • 1. Remove all taxes for electric vehicles to save environment
        2. Reduce taxes for hybrid and plug in hybrid vehicles to save environment by giving tax incentives
        Remove taxes for european cars
        4. Impose car taxes based on horsepower including national cars
        5. Roadtax must be based on horsepower
        6. Impose stricter for lemon law
        7. Reduce taxes for European and Korean cars including CBU and CKD
        8. Remove taxes for pick up trucks
        9. Remove taxes for CBU vehicles

        Can’t agree:
        1. Removing all taxes for CKD vehicles (Reasons: because traffic jam might increase and pollution)

        Like or Dislike: Thumb up 25 Thumb down 8
        • why roadtax based on horsepower? the horsepower destroy the road condition meh..

          it’s people that destroy the roads la.
          roadtax should be based on noise pollution level that the car produces.. then u immediately stop noise pollution as well.

          all those loud exhaust fools will get taxed. that’s way more fair.

          Like or Dislike: Thumb up 2 Thumb down 19
          • Disagree with you on Oct 07, 2022 at 4:54 pm

            You went to Singapore??

            Like or Dislike: Thumb up 5 Thumb down 1
          • Maggie on Oct 07, 2022 at 5:03 pm

            It won’t help. Because of the roadtax was based on noise pollution. It’s going to be problem. Buying turbo gasoline cars but easily breakdown and expensive to maintain than naturally aspirated engine. Also even you said roadtax was based on noise pollution, it won’t stop congestion and still be filled with many turbo gasoline cars on the road in near future if you said that. That’s why roadtax was based on horsepower much better, for taxing more for the rich like turbo gasoline cars. Make lesser taxes for naturally aspirated engine, hybrid and turbo diesel cars as for working but someone mentioned it

            Like or Dislike: Thumb up 8 Thumb down 1
            • Bright on Oct 10, 2022 at 10:40 am

              EV cars has more horsepower than turbocharged engine..

              Like or Dislike: Thumb up 1 Thumb down 0
      • FudgeMeSideways on Oct 07, 2022 at 3:26 pm

        Whoa re all this bots against removing excise tax? You lot dont wanna buy cars the same price as developed countries?

        Like or Dislike: Thumb up 3 Thumb down 21
        • Disagree with you on Oct 07, 2022 at 4:53 pm

          Then why 5 bots upvote for against traffic congestion. Does 5 bots are not importance on traffic congestion and also reduce air pollution?

          Like or Dislike: Thumb up 6 Thumb down 1
          • Is either they don’t bother on why traffic jams already too much or bla bla commenting but wanting to reduce car prices but taxing more on parking, tolls, noise pollution but does it help to stop traffic jam…No!!

            Like or Dislike: Thumb up 3 Thumb down 0
      • malaysiaku on Oct 07, 2022 at 4:06 pm

        Some naive rakyat think everyone lives in the Klang Valley with access to public transport and a car may not be necessary. Thus they are fine with maintaining the current vehicle tax structure whereas other rakyats throughout the country, including East Malaysia, have to live with expensive cars, high finance charges and insurance premiums. If you want to reduce congestion so much, why not follow the UK? their cars aren’t expensive but it is expensive to drive one in London. Make parking and tolls more expensive and introduce congestion related charges. Make it expensive to own a car, not buy one.

        Like or Dislike: Thumb up 6 Thumb down 12
        • Another silly logic from you. How does it help to stop traffic jam….by making more expensive for tolls and parking and reduction for car prices….people will still buy cars when reduction prices and traffic jam will never stop…you must be sleeping. What is the type of fuel category that been seeing more on the roads…non-EV cars have been causing problems for traffic jams. And the vehicle tax structure is already dated and time to modify. Current vehicle tax structure will also won’t help to stop traffic jam. Wake up and wake up

          Like or Dislike: Thumb up 3 Thumb down 1
        • Bro. East Malaysia prefers pickups which has very low taxation. No they are okay with this current arrangements. If you cannot afford it is simply bcoz you are poorfag. Work harder so you can buy your dream P1/P2.

          Like or Dislike: Thumb up 7 Thumb down 0
    • 1. Remove all taxes for electric vehicles to save environment
      2. Reduce taxes for hybrid and plug in hybrid vehicles to save environment by giving tax incentives
      Remove taxes for european cars
      4. Impose car taxes based on horsepower including national cars
      5. Roadtax must be based on horsepower including national cars
      6. Impose stricter for lemon law including national cars
      7. Reduce taxes for European and Korean cars including CBU and CKD
      8. Remove taxes for pick up trucks
      9. Remove taxes for CBU vehicles

      Can’t agree:
      1. Removing all taxes for CKD vehicles (Reasons: because traffic jam might increase and pollution)

      Like or Dislike: Thumb up 18 Thumb down 7
    • 1. Extension on import tax, excise duty, and road tax exemption for CBU EV to 2025.
      2. Extension on excise duty, and road tax exemption for CKD EV to 2026.
      3. Infrastructure spending on building EV charging point and EV assembly plant nationwide.
      4. Introducing lemon law.
      5. Introducing end of life vehicle to reduce spate of abandoned cars on the street.

      Like or Dislike: Thumb up 7 Thumb down 3
    • Lanhb on Oct 07, 2022 at 4:36 pm

      Plenty of EVs around, will still cause traffic jams; yes reduced first-hand pollution, but road traffic, parking space will still led to congestion, double parking etc. Still car-centric.

      Like or Dislike: Thumb up 2 Thumb down 2
      • EVs on the road will cause traffic jam…what kind silly logic is that? Are you saying non-EV cars doesn’t cause more traffic jam…you must be sleeping all the time

        Like or Dislike: Thumb up 5 Thumb down 2
        • Bro. If you replace current 30million ICE cars on the road currently with 30 million EVs, you will still have the traffic jam remain. @Lanhb is right. Replacing one mode with another mode does not reduce jams at all unless switching to mass public transportation.

          Like or Dislike: Thumb up 4 Thumb down 0
    • I don’t know why some people here who thinks that reduce tax but taxing on tolls and parking will stop traffic jam…they must be sleeping or never own car or never see outside before….Everyone loves or drive cars much but traffic jams is already too much and in order to reduce traffic jam, this must put to stop by modifying vehicle tax structure. Saying taxing on tolls, noise pollution levels, parking or whatever it is…that won’t definitely help for sure…please wake up for those who don’t know at all on why traffic jams is already too much

      Like or Dislike: Thumb up 2 Thumb down 0
    • Tesla Buyer on Oct 07, 2022 at 7:05 pm

      Meaning can import eV car from other countries without paying AP? Can buy tesla and bring directly here?

      Like or Dislike: Thumb up 1 Thumb down 0
    • What happened to Penang lrt?

      Like or Dislike: Thumb up 0 Thumb down 0
    • Mr Mar on Oct 11, 2022 at 8:51 am

      All these figures goes to dustbin after PM Ismail announce parliament dissolution on Monday, 10th October 2022.

      Like or Dislike: Thumb up 0 Thumb down 0
     

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