Budget 2024 – all auto and transport-related points

Malaysia’s Budget 2024 (Bajet 2024) is being tabled by finance minister and prime minister Datuk Seri Anwar Ibrahim in parliament. As with past editions of the Budget, we will be monitoring his speech for any matters related to the automotive and transport sectors.

Among the key talking points this year has been the targeted subsidy programme, which the government expects to implement early next year, with its timeframe based on the scheduled launch of the Pangkalan Data Utama (PADU) socio-economic database this November.

Electrification is also expected to remain on the agenda, as Malaysian Automotive Association (MAA) proposed that new electrification incentives be given under Budget 2024, for all types of electrified vehicles (xEVs), and not just battery-electric vehicles (BEVs).

In the last edition that was the retabled Budget 2023, the current import duty and excise duty exemption for fully-imported (CBU) EVs has been extended to December 31, 2025, which was originally to end on December 31, 2023, before the first tabling of Budget 2023 saw this extended to December 31, 2024.

The same, too, was granted for locally-assembled (CKD) EVs. Originally set to run until December 31, 2025, it has been extended by two years to December 31, 2027.

In addition to automotive sector-related points, we will also be watching for news related to public transport and infrastructure. Live updates will be posted here, so stay tuned.

LIVE UPDATE POINTS

Diesel subsidy will move from blanket to targeted, in phases

• Move is to reduce serious leakage, smuggling
• Current market price is RM3.75 per litre, subsidy is RM1.60 per litre
• Goods vehicles/logistics to continue enjoying subsidy, others to pay higher price
• Full story here

Road upgrades across the country

• Govt commits to action within 24 hours upon receiving complain on damaged federal roads
• State govts to use MARRIS budget of RM5.4 billion to ensure that state roads are in good condition
• Next year, RM2.8 billion allocated to maintain federal roads and bridges – total RM8.2 billion
• RM100 million to replace street lamps to LEDs for electricity savings of up to 60%
• RM50 million for local councils to do the same
• RM50 million to make high accident rate spots safer, install smart traffic lights for smoother flow

Service tax to increase from 6% to 8% in 2024

• Car servicing labour charges to cost more
• Service tax only applies to labour, not parts
• F&B, telco sectors exempted from increase
• Full story here

Govt on EVs

• Govt to continue to boost local EV industry and encourage consumer acceptance
• Companies like TNB, Gentari, Tesla Malaysia to invest over RM170 million to install 180 EV chargers – full story here
• To boost use of electric motorcycles, a scheme for rakyat earning below RM120k per annum will provide RM2,400 rebate – full story here

Electric buses for LRT3

• For LRT3, Prasarana will buy 150 electric buses and build three depots at a cost of RM600 million – full story here

Personal income tax relief for EV charging

• Personal income tax relief of up to RM2,500 on EV charging equipment, services extended to 2027
• Not a new measure, but extended
• Tax exemption for cost of EV rental for two years

Federal govt to use EVs as official cars

• Federal administration to use EVs as official cars
• Putrajaya to be low carbon model city in Malaysia
• Solar panels on roof of govt buildings with the cooperation of TNB, Gentari
• Full story here

Revenue from selling special number plates will be used to assist rakyat

• Part of proceeds from sales of special number plates will be used to reduce burden of needy rakyat
• Govt to continue supporting driving test fees for B2 motorcycles, e-hailing, taxi – will benefit 40k youths
• 100k helmets, including for children, will be distributed for free to the needy
• Full story here

Rural infrastructure

• RM1.63 billion to build and upgrade rural and kampung roads
• RM134 million for the installation of 60k street lamps, maintenance of over 500k existing ones
• RM57 million for 115 projects including 54 for upgrade/building brigdes
• Full story here

LRT3 line regains five stations

• Govt has given green light to reinstate five previously-cancelled LRT3 stations, cost is RM5.3 billion
• The stations are Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanik
• The only station not revived is Persiaran Hishamuddin, Shah Alam
• Full story here

Penang LRT

• LRT Pulau Pinang to Seberang Perai – early estimates put cost at RM10 billion, as planned by the Penang state govt
• To be carried out via public-private partnership
• Full story here

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Learn more: Budget 2024