Malaysia’s revised Budget 2023 (Bajet 2023) is presently being tabled by finance minister and prime minister Datuk Seri Anwar Ibrahim in parliament. As with previous editions, we will be monitoring his speech for any automotive- and transport-related matters.
The original tabling of Budget 2023 by the previous administration in October 2022 brought the announcement that fully-imported (CBU) electric vehicles would be exempt from import and excise duties until December 31, 2024, an extension of a year from the previous end date of December 31, 2023.
More EV incentives could be announced today, given the broad hints that have already come about on the matter. Last month, natural resources, environment and climate change minister Nik Nazmi Nik Ahmad said that the government intends to offer additional EV incentives, and earlier this week minister of international trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that proposed incentives had been submitted to the finance ministry.
Also expected to be included in the revised budget is the announcement of a targeted fuel subsidy, which Anwar has said is a topic he wants to address as quickly as possible.
In addition to automotive-related matters, we’ll also be looking out for any public transport and infrastructure news. Live updates on these will be posted here, so stay tuned.
LIVE UPDATE POINTS
In his speech, Anwar said there was a pressing need to plug leakages from wastage as well as irregular payments and collections, something highlighted in the Auditor General’s reports for 2020 and 2021. The reports revealed that there was a leakage of almost RM3 billion, resulting in the loss of public money. One example of this is in the under-collection of vehicle import duty, where the government has lost RM72 million due to a weak import duty collection process.
In addition, there is also a significant leakage in the implementation of diesel subsidies – it is estimated that nearly RM10 billion worth of diesel subsidies were misappropriated last year.
Absorbing the cost of licence tests
- The government will bear the cost of riding test for B2 motorcycle category (below 250 cc)
- It will also absorb the cost for taxi, bus and e-hailing licence PSV test fees
Electricity tariffs
- Electricity tariffs have been maintained for all domestic consumers and SME businesses, but those for all large companies (except those in the food and agriculture sector) have been increased. This means that there will be no additional cost impact for charging an EV at home
Airport upgrades
- The government will expand and improve the capacity of Penang International Airport and Subang Airport
Road network projects
- RM2.7 billion will be allocated to maintain and upgrade federal roads
- RM1.5 billion will also be provided to upgrade rural roads and build new ones
- RM480 million to construct a new road from Habu to Tanah Rata, Cameron Highlands, Pahang
- RM300 million to upgrade Jalan Tun Hamzah to the Semabok intersection at Lebuh AMJ in Melaka
- RM160 million to build a road and bridge across Sungai Sepang to connect Bukit Pelandok, Port Dickson and Sungai Pelek in Sepang
- The road network to Pengerang, Johor will be improved with a new overtaking lane on Senai-Desaru Highway
- RM525 million to widen the Johor stretch of PLUS from Yong Peng Utara to Senai Utara to six lanes
On the issue of potholed roads, district JKR offices will speed up the paving of federal road damage as well as other urgent repairs based on complaints received from the people. RM100,000 will be allocated to each district for this purpose.
The government says it will also continue and expedite the implementation of the Pan Borneo Sabah highway and the Sarawak-Sabah Link Road, which is estimated to involve a total cost of RM20 billion.
Road lighting infrastructure to be improved
- A total of RM50 million will be provided to install street lights, especially in high accident areas
Public transport
- My50 travel pass monthly subscription initiative will be continued, to benefit nearly 180,000 users
- myBAS50 unlimited travel pass pilot project to be introduced in Johor Bahru for the SBST programme
- RM150 million to expand the implementation of the SBST programme to Melaka, Kuching and Kota Kinabalu
MRT3
- The government is aiming to bring down the development cost for the project from the estimated RM50 billion it is at right now to under RM45 billion.
Electric vehicles (EV)
- Import and excise duty exemption for fully-imported CBU EVs extended to December 31, 2025 (two-year extension from end-2023, previously extended to end-2024 in first tabling of Budget 2023)
- Excise duty and sales tax exemption for locally-assembled CKD EVs extended to December 31, 2027 (two-year extension from December 31, 2025)
- 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)
Looking to sell your car? Sell it with Carro.
make vehicle ownership exorbitant & let fuel prices float
Previous 60 years gomen never said to limit car ownerships only for the rich.
Previous 60 years gomen never said RM 120k car is considered affordable.
Previous 60 years gomen never bash B40 & M40 for not affording an “affordable Rm 120k” EV.
Previous 60 years gomen never send trolls to whack others for highlighting the truth.
Simply put, previous 60 years gomen was never this farkup like today.
60 years ago they never needed you, i’m pretty sure even now they don’t need you
Electric cars never meant for the poor Rakyat, because the price of the replacement rechargeable battery for EVs can buy you a new Perodua MyVi…so you if you can afford a RM120k car you’re not considering poor….
Dear Government,
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
3. Impose car taxes if brands are unreliable
4. Impose car taxes if brands have higher fuel consumption and not all luxury brands have to be taxed. If luxury brands have lower emissions including petrols, should not be taxed
5. Remove taxes for pick up trucks
6. Promote for public transport
These will not make traffic jams longer and can able to reach there to their destination earlier than late
This statement above, I totally agree with you
Mr Now or Never
We r not land scarce Singapore.
Car taxes should come down on a staggered basis,while petrol prices also be floated gradually.
You cant overnight price Ron 95 at rm 3.30/litre.
All Hell will break loose.
So,far after all the gungho Rafizi/Sallahudin attempts to float petrol prices,PM Anwar played it safe,for time being.
Imagine the huge backlash if rakyat wake up to RM3.30/litre petrol on March 1.It can be regime topling,which we dont want another Sheraton move.
hardest choice requires strongest will, do it while in power, isn’t that what reform is all about?
Better upgrade the road leading to Subang Airport from federal, NKVE and DASH or later EVERYONE CAN BE LATE!!
Thank you Anwar. Tax the rich, help the poor.
The actual rich really know how to do creative accounting to reduce the tax..
What government is taxing from are the urban poor working class, those who barely earn enough to live in urban areas..
The government really fail to tax the actual rich
101k p.a. is consider rich? is only 8.4k+ per mth. M40 shld be around 6-15k, p/mth. And it stated incometax increase only affects 150k tax payer?? only 150k?? How come so many cars above rm150k otr? Bm, benz , vellfire r everywhere! weird!?
Why only widen the southern stretch of NSE???? What about the northern stretch???? Anwar don’t want KL people go Ipoh is it? Do you know how bad the jam is there? With all the hilly road? When will WCE will be completed? Did anyone investigate whether the contractor is up to par to deliver the project or not? 8 years and we only got small stretch here and there?
Satu2 kawan. Semua nk serentak, mau tercirit mrk nnti.
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
3. Impose car taxes if brands are unreliable
4. Impose car taxes if brands have higher fuel consumption and not all luxury brands have to be taxed. If luxury brands have lower emissions including petrols, should not be taxed
5. Remove taxes for pick up trucks
6. Promote for public transport
These will not make traffic jams longer and can able to reach there to their destination earlier than late
Please don’t cut corners on MRT3; do not put difficult design objectives for the Engineers – they are not magicians – they have to work with whatever limited resources are available to them. Let them develop the best post possible MRT for us with the available technologies today. In the coming years, inflation will continue to rise, and raw materials prices like steel will rise; cutting costs on a multi-year capital project while raw material costs rise is not wise, we will pay the price somehow. By cutting corners, you will only put in place a system that will start to see issues after it starts operating. This is a national asset – do it well, the returns will be for the next 40-50 years, and not saving RM5B today is a small price to pay for safety, efficiency and convenience for the next 40-50 years.