Budget 2025

• Budget 2025: RM2.8 billion to maintain federal roads, RM5.5 billion MARRIS budget to improve state roads

  In Local News / By Mick Chan / 18 October 2024 7:26 pm / 6 comments

  

  The tabling of Budget 2025 by finance minister and prime minister Datuk Seri Anwar Ibrahim has revealed the allocation of funds for the maintenance of federal and state roads in the country.

  Road maintenance has been given renewed focus in order to reduce the number of road accident cases which result from unsafe roads. RM2.8 billion has been allocated for the refurbishment and maintenance of federal roads, while RM1 billion has been allocated for non-main roads (such as secondary roads, FELDA roads and industrial roads), as well as flood-damaged roads.

  In addition to this, RM450 million is allocated to G1 to G4 contractors, while RM5.5 billion is allocated for the MARRIS (Malaysian Road Record Information System) fund for state roads.

  

  

  The road maintenance covered by this budget allocation will also comprise of road clean-up including drains, water channels, road shoulders and surroundings. Additionally, the federal government has approved the use of one Bailey bridge for all state governments through the MARRIS fund as a proactive measure to overcome the effects of floods on roads.

  Also included in the allocation is RM178 million for the installation of street lamps and smart traffic lights on federal roads nationwide, while RM30 million has been allocated for district engineers in their role for expediting the paving and repairs of potholed federal roads.

  The federal government has also agreed to install high-speed, weighing-in-motion system for the detection of overweight lorries at selected locations to reduce road deaths results from crashes involving overweight lorries.

   

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• Budget 2025: RM2,400 electric bike subsidy continues

  In Bikes, Local Bike News / By Mohan K Ramanujam / 18 October 2024 6:08 pm / 4 comments

  

  Finance minister and prime minister Datuk Seri Anwar Ibrahim has announced in his Budget 2025 speech that the RM2,400 subsidy for CKD electric motorcycles (e-bikes) will continue. Anwar added RM10 million has been allocated for this purpose to encourage the ownership of e-bikes.

  The subsidy was introduced in the 2024 budget and intended to assist those earning RM120,000 and below annually. This is inline with the government’s aim to promote e-bike use among the B40 income group.

  Malaysia has also seen e-bike battery swapping service providers Yinson Greentech RydeEV and Blueshark set up shop in the past two years. During the speech, Anwar made no mention of the continuation for EV tax breaks for four-wheel electric vehicles which is assumed to end in 2025.

   

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• Budget 2025: JPJ, PADU, LHDN to use MyDigital ID

  In Local News / By Mick Chan / 18 October 2024 6:05 pm / 8 comments

  

  At today’s tabling of Budget 2025, the government has announced that the MyDigital ID application will be the central application for government agencies including the road transport department (JPJ), LHDN and the PADU centralised database.

  At the beginning of this month, users of the MyJPJ mobile application have been required to have a MyDigital ID account in order to log into the road transport department’s app.

  Just one day after the announcement, transport minister Anthony Loke said that MyJPJ users do not need a MyDigital ID to use the department’s app for now, and subsequently MyDigital ID Sdn Bhd CEO Mohd Mirza Mohd Noor said that MyDigital ID has been postponed, and not cancelled.

  First announced last November, MyDigital ID was pitched as a national digital identification system for Malaysians, with which Malaysians will no longer need to use different platforms using different passwords, just one verification system is needed for digital government services.

   

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• Budget 2025: No mention of EV tax break extension; Perodua working on sub-RM100k EV

  In Local News / By Jonathan James Tan / 18 October 2024 5:37 pm / 11 comments

  

  Finance minister and prime minister Datuk Seri Anwar Ibrahim has announced in his Budget 2025 speech that Perodua is working on a sub-RM100k EV, without divulging any further details.

  Besides this, there is no mention of any extension to the EV tax breaks, so CBU EV tax breaks will end in 2025. Beginning 2026, only CKD EVs will be tax free. The free road tax for EVs should also be ending in 2025.

  Perodua displayed the emo-1 EV concept at the Malaysia Autoshow 2024, foreshadowing its upcoming EV which is expected to surface towards the end of next year.

  

  

  Instead of deriving the technology from partner Daihatsu, Perodua is developing its EV on its own, with the assistance of an as-yet-unnamed Australian partner.

  Proton is going to launch the eMas 7 EV soon, but as that will be CBU from China (at least for now), it will have to adhere to the RM100k floor price that’s been set by the government.

  The Neta V and Dongfeng Box are among the EVs expected to be locally assembled (CKD) in 2025 – these could be priced below RM100k as well.

  GALLERY: Perodua emo-1 Concept at Malaysia Autoshow 2024

  

  

  

  

  

  
  

  

  

  

  

  

  
  

  

  

  

  

  

  
  

  

  

  

  

  

  
  

  

  

  

  

  

  
  

  

  

  

  

  

  
  

  

  

  

  

  

  
  

   

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• Budget 2025: Profits from sale of special number plates to be channeled to help the less privileged

  In Local News / By Mick Chan / 18 October 2024 5:22 pm / 6 comments

  

  The tabling of Budget 2025 by finance minister and prime minister Datuk Seri Anwar Ibrahim is currently ongoing today, and this has revealed that profits from the sales of special series number plates will be channeled to the less privileged.

  Proceeds going to the MyLesen B2 license programme (for motorcycles under 250 cc of engine capacity) will benefit 15,000 youth participants of the MyLesen programme.

  Aimed at the B40 group, this license assistance programme packages tests and lessons at RM300 per candidate. Launched in May 2023, RM2.7 million was allocated for this purpose under Budget 2023.

  Profits from the sale of special number plates will also go to the distribution of 67,000 helmets to motorcyclists, free of charge. Meanwhile, proceeds from special number plates will also fund flight tickets for 60,000 tertiary graduates from Sabah and Sarawak.

   

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• Budget 2025: RON95 petrol subsidy cut to start mid-2025 – top 15% earners (T15) to pay more for fuel

  In Local News / By Anthony Lim / 18 October 2024 5:03 pm / 30 comments

  

  The government has announced that it will restructure the RON 95 petrol subsidy in mid-2025, with a switch to a targeted subsidy. This was revealed by prime minister Datuk Seri Anwar Ibrahim during his tabling of Budget 2025.

  He said that at present, the country spends RM20 billion a year in petrol subsidies to maintain the pump price of RON 95 at a capped RM2.05 per litre, and streamlining this to a targeted subsidy would save the government RM8 billion.

  The PM said this amount, which accounts for 40% of the total petrol subsidy, was what was being “enjoyed by foreigners and the top 15% of super-rich consumers.” He stated that this money would be better utilised for the improvement of educational facilities, health as well public transportation.

  

  Anwar added the government remains committed to maintaining subsidies for the majority of the people, which means that 85% of RON 95 users will not be affected. He said the government would “continue to bear subsidies estimated at RM12 billion for the needs of these 85%.”

  No details on how the petrol subsidy rationalisation would be implemented, so it remains to be seen what form the mechanism will take, ahd whether it will be gradual (unlikely). Presently, unsubsidised RON 95 is priced at RM2.76 per litre (October 18).

  Because it has a significantly larger user base, the route for RON 95 petrol is unlikely to follow that adopted for diesel, where pump prices are set to full market price, with those eligible for subsidies getting RM200 credited to their bank account monthly. The threshold for diesel subsidy is an annual income of RM100,000, so this could be higher for petrol because of the top 15% mention. Expect more info to trickle in over the following months.

   

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• Malaysia Budget 2025 live updates (auto/transport)

  In Local News / By Jonathan James Tan / 18 October 2024 4:07 pm / 4 comments

  Budget 2025 for Malaysia is being tabled now (October 18, 4pm) by finance minister and prime minister Datuk Seri Anwar Ibrahim. As with prior editions, we will be posting live updates on matters related to the automotive and transport sector here.

  Targeted RON95 petrol subsidy to start mid-2025

  • Govt has agreed to carry out targeted RON95 petrol subsidy by mid-2025 without affecting 85% of Malaysians, who will continue to enjoy subsidised prices.
  • The top 15% earners (T15) will pay more for fuel, saving the government RM8 billion in subsidies.
  • Full story here

  MyDigital ID to be used as sole government app for JPJ, PADU and LHDN

  • Full story here

  Proceeds from sale of special number plates will be used to help the less privileged through:

  • MyLesen for the benefit of 15,000 youths
  • Flight tickets for 60,000 Sabah and Sarawak graduates
  • Distribution of 67,000 free motorbike helmets
  • Full story here

  Perodua working on sub-RM100k EV

  • Full story here

  No mention of EV tax break extension

  • Therefore, CBU EV tax breaks are expected to end in 2025
  • From 2026, only CKD EVs will be tax free
  • Free road tax for EVs should also end in 2025
  • Full story here

  Road refurbishment to reduce accident cases

  • RM2.8 billion for federal roads
  • RM1 billion for non-main roads (secondary roads, FELDA roads, industrial roads) and flood-damaged roads
  • RM450 million for G1-G4 contractors
  • RM5.5 billion MARRIS fund for state roads
  • Road clean-up: drains, water channels, road shoulders and surroundings
  • Federal Govt has approved one temporary Bailey bridge for all state govts, using MARRIS fund, as proactive measure to overcome flooded roads
  • RM178 million for lighting on new roads and smart traffic lights on federal roads nationwide
  • RM30 million for the benefit of 115 district engineers as frontliners in paving potholed federal roads
  • Govt has agreed to install High-Speed Weigh-In-Motion at selected locations to reduce accidents caused by overweight vehicles
  • Full story here

   

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• Budget 2025 tabling by PM Anwar Ibrahim, 4pm today

  In Local News / By Mick Chan / 18 October 2024 3:49 pm / 3 comments

  Budget 2025 for Malaysia will be tabled at today by finance minister and prime minister Datuk Seri Anwar Ibrahim, and this will commence at 4pm today. As with prior editions, we will be monitoring the speech for matters related to the automotive and transport sector.

  Subsidy rationalisation for RON 95 petrol is highly anticipated, however it remains to be seen if changes affecting pricing will be made so soon after the rationalisation of diesel fuel subsidies, which began June 10 this year.

  Also expected to be addressed is the subject of goods and services tax (GST) and it possible reintroduction, however the prime minister had said last year that there were no plans for its return in the short- and medium-term.

  While previously postponed, the High Value Goods Tax (HVGT) could be introduced at this tabling, though at present the threshold, tax rate and types of goods involved have yet to be made clear. HVGT was set for introduction in May, but has been put on hold for further fine-tuning.

  Likely inclusions for transport and infrastructure in Budget 2025 could be the continuation of the My50 public transport subscription passes, and allocations for road network projects. More as we monitor Budget 2025 today.

   

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• Budget 2025 to be tabled by finance minister, prime minister Anwar Ibrahim at 4pm on Friday, October 18

  In Local News / By Anthony Lim / 18 October 2024 10:21 am / 5 comments

  

  Malaysia’s Budget 2025 will be tabled later today, Friday, October 18 at 4pm by finance minister and prime minister Datuk Seri Anwar Ibrahim, and as with previous editions of the budget, we will be monitoring his speech for any matters related to the automotive and transport sector.

  The topic of the implementation of RON 95 petrol subsidy rationalisation is expected to be presented, although it remains to be seen if such a move will be made so close to that done for diesel, for which targeted subsidies began on June 10. The PM has previously said that there were no plans for this yet, and the latest indication by economy minister Rafizi Ramli suggests that the implementation may be pushed back because of improvements to the country’s economy.

  Analysts have said that the budget will also broach the subject of the goods and services tax (GST) and its possible reintroduction in a bid to broaden the country’s tax base, but the prime minister stated last year that there were no plans for a GST return in the short and medium term, reiterating that point earlier this week.

  There’s also a possibility that the tabling will see the introduction of the postponed High Value Goods Tax (HVGT), although as yet it’s unclear what the tax rate, types of goods affected and set value threshold will be. The tax was due to be implemented in May with a threshold of RM200,000 for cars and a rate of between 5 to 10%, but was put on hold as the government worked to fine-tune the policies and legal framework.

  Other related topics should include the possible continuation of the My50 public transport subscription passes and that of road network projects. More on all this, later today.

   

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• GST reintroduction, High Value Goods Tax (HVGT) set to be announced during Budget 2025 – RHB analyst

  In Local News / By Jonathan Lee / 26 September 2024 2:18 pm / 26 comments

  

  Aside from a targeted subsidy programme for RON95 petrol, the upcoming Budget 2025 is also set to bring forth the reintroduction of the goods and services tax (GST), Bernama reported. According to RHB Investment Bank analyst Alexander Chia, Malaysia is looking to broaden its tax base now that the unity government under prime minister Anwar Ibrahim is said to be secure.

  “We are confident that the government will make more meaningful progress in subsidies and initiatives to broaden the tax base to further reduce the fiscal deficit, provide room for infrastructure investment and create opportunities to control the national debt.

  “In this aspect, the two main initiative that have yet to be decided are the rationalisation of the subsidy of RON95 petrol and the reintroduction of GST which is compatible with the full implementation of e-Invoicing,” said Chia in a research note.

  

  The tax was first introduced in April 2015 at a rate of 6% (which reduced prices for some cars) but was repealed in 2018 after the then-new Pakatan Harapan government came to power, replaced by the 10% sales and service tax (SST). Despite the political turmoil that has happened since then, GST was never brought back, even though it was mooted several times.

  The bank expects that Budget 2025, which will be tabled on October 18, will focus on fiscal prudence with an emphasis on low-income groups; it will also demonstrate a commitment to reform and include clear initiatives that, as mentioned, will broaden the tax base. It’s projected that the fiscal deficit target will be lowered to 3.5% of the country’s GDP, down from 4.3% this year.

  There’s also a possibility that the tabling will see the introduction of the postponed High Value Goods Tax (HVGT), although as yet it’s unclear what the tax rate, types of goods affected and set value threshold will be. The tax was due to be implemented in May with a threshold of RM200,000 for cars and a rate of between 5 to 10%, but was put on hold as the government worked to fine-tune the policies and legal frameworks.

   

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• RON95 petrol subsidy rationalisation to be detailed in Budget 2025 to be tabled next month – RHB IB

  In Local News / By Mick Chan / 26 September 2024 12:56 pm / 16 comments

  

  RHB Investment Bank (RHB IB) expects that more details on subsidy rationalisation for RON 95 petrol, as well as on the reintroduction of the goods and services tax (GST) will be revealed in the 2025 Budget that will be tabled on October 18, Bernama has reported.

  The investment bank expects RON 95 petrol subsidy rationalisation to take place towards the end of this year, according to the report. At present, the RON 95 grade of petrol retails at its ceiling price of RM2.05 per litre, an upper limit that was set by the Malaysian government in February 2021.

  “Despite some progress on reforms, we believe the government still has ample political capital to make further meaningful progress on subsidies and initiatives to broaden the tax base to narrow the fiscal deficit further, create headroom for infrastructure investments, and establish a pathway to contain the national debt,” said analyst Alexander Chia.

  

  “In this regard, the two key pending initiatives are subsidy rationalisation for RON95 petrol and reviving the GST that will dovetail with full implementation of e-Invoicing,” Chia said.

  The fuel subsidy rationalisation programme in Malaysia began June 10 for diesel fuel this year in Peninsular Malaysia, which saw a hike of RM1.20 to RM3.35 per litre from that date. Following several price adjustments, diesel dropped to RM2.95 per litre last week, with no change for the coming week. The retail price of diesel fuel in Sabah, Sarawak and Labuan remains unchanged at RM2.15 per litre.

  While the removal of subsidy for RON 95 petrol has been previously said to take place this year, economy minister Rafizi Ramli said in June that the government is still studying the removal of RON 95 subsidy. As of today (September 26), the price of unsubsidised RON 95 petrol in Malaysia is RM2.81 per litre, according to unsubsidised fuel outlet Double.

   

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• Anthony Loke wants subsidised My50 monthly travel pass initiative to continue in upcoming Budget 2025

  In Local News, Public Transport / By Danny Tan / 21 August 2024 5:48 pm / 7 comments

  

  Transport minister Anthony Loke hopes that the My50 unlimited monthly travel pass for Rapid KL trains and buses in the Klang Valley will be continued in Budget 2025, which will be tabled in October.

  “The government has been giving priority to the public transport system and we have seen an increase in allocation through the My50 travel pass, which was increased from RM100 million to RM200 million last year. We hope that such initiatives will be continued next year to ease Klang Valley commuters with an affordable public transport system to ease congestion,” he said yesterday, reported by The Star.

  The Seremban MP said the My50 scheme has reached more than 200,000 users a month, and there are over 900,000 rail commuters in the Klang Valley daily.

  

  “We know that the Klang Valley faces major traffic congestion therefore, there is a need to continue our efforts to improve the public transport system so more residents can utilise it. I hope the initiatives and projects we have requested will be considered by the finance ministry,” he added.

  Introduced in 2019, the My50 is an unlimited travel pass that offers Malaysians 30 days of unlimited rides on the LRT, MRT, Monorail, BRT, Rapid KL bus and MRT feeder bus services. It’s a fantastic deal for city commuters, which the government subsidises to the tune of RM100 (as stated on purchase/renewal receipts).

  “No other country provides such high subsidies for public transportation, making it an affordable option for citizens. Imagine that for less than two ringgit a day, you can use any type of public transport in Kuala Lumpur,” Loke was quoted as saying last year.

   

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