With effect July 1, 2025, a 10% Sales and Services Tax (SST) is imposed on the sale of motorcycles below 150 cc capacity in Malaysia. Previously, from 2018 to June 2025, an exemption was given to motorcycles below 250 cc under the previous SST rate.
In response, paultan.org was informed by a source the Motorcycle and Scooter Assemblers Association of Malaysia (MASAAM) has forwarded an appeal to the Malaysian Ministry of Finance for an exemption. At this point, MASAAM is awaiting a response or instruction from the ministry.
The implication of the 10% SST is the prices of small displacement will rise, with the cost passed on to the consumer. Typically, motorcycles and scooters below 150 cc are purchased as budget friendly option for those needing cheap daily transport, especially in areas of the country where accessible and reliable public transport is poor or non-existent.
As of 2024, the total industry volume (TIV) of Malaysian motorcycle sales is approximately 660,000 units, of which about half is small motorcycles and scooters below 150 cc. With an average sales price of RM6,000 per unit, imposing a 10% SST would mean the government stands to collect some RM180 million, per year, from sales of small displacement motorcycles.
Additionally, the SST imposed remains silent on motorcycles and scooters that fall between the 151 cc to 500 cc band. This could mean prices will remain the same for two-wheelers inn that category, in theory.
RM100 for MyKasih is not free. somehow government will find a way to take it back.