Malaysia Budget 2015 Archive

  • Fuel subsidy plan to be announced in a few weeks


    Although RON 95 petrol, diesel and LPG have officially been declared free of Goods and Services Tax (GST), Prime Minister Datuk Seri Najib Tun Razak announced last Friday in his Budget 2015 speech that a mechanism or plan for the rationalisation of subsidies for these fuels would be unveiled “at the soonest time.”

    Well, this is certainly sooner than we expected, for according to Bernama, second finance minister Datuk Seri Ahmad Husni Mohamad Hanadzlah has said that the plan is ready, and the PM will announce it in the next few weeks.

    “The (subsidy rationalisation for) commercial vehicles will be implemented first and that for passenger cars will come later,” he told reporters after the Budget was tabled on Friday.

    Petrol_Subsidy_Sept_ 001

    Domestic Trade and Consumer Affairs ministry (KPDNKK) secretary-general Datuk Seri Alias Ahmad said before that diesel subsidy rationalisation was expected to be implemented in January 2016, while that for petrol could happen two to three months after.

    The new mechanism is said to ensure a more “targeted” subsidy – in other words, ensuring subsidised fuel is sold only to those deemed eligible.

    Whether it’ll just be a two-tier system (where you either buy subsidised or unsubsidised fuel) or if the levels of subsidy vary according to your income (higher income, less subsidy) remains to be seen. It’ll also be interesting to see how one is required to show proof of income at the pumps… or is there another way around it?

  • Malaysia Budget 2015: CKD hybrid incentives – no extension to December 2015 deadline announced


    The just-concluded Budget 2014 speech made by Prime Minister Datuk Seri Najib Tun Razak did not make any announcement on the current duty exemption for CKD hybrid cars that was originally announced during the 2014 National Automotive Policy (NAP).

    As of now, we can assume that the CKD hybrid duty exemptions will end on schedule on December 31, 2015. Currently, the only cars on sale that qualify for the exemption is the Mercedes-Benz S 400 L Hybrid and the previous-generation Honda Jazz Hybrid.

    There has been word that a few other cars will be launched too – the Nissan Serena S-Hybrid, the Toyota Camry Hybrid and the Mercedes-Benz E 300 BlueTEC Hybrid. However, with just over one year to go and with none of them launched yet, it might turn out to be a very short run for these cars.

    The S 400 L Hybrid already has an insane waiting list that extends way past the December 2015 deadline, so if you want to book one now, there is no hope of obtaining a unit at the extremely attractive duty-free RM587,888 price tag.


    The Toyota Camry Hybrid was supposed to be introduced by the end of this year at just under RM200k, which is a premium over the 2.5 V variant, but last we heard, the introduction had been postponed to next year. The short time period until the duty exemption expires could be one factor, the fact that a facelift has just been unveiled worldwide another.

    If there is indeed an extension on the cards, announcing it at Budget 2016 would not be ideal, considering that car companies plan their products a year in advance. As we’ve said in the past, making an announcement very early on would ensure that the industry can conduct proper stock/product planning.

    This is clearly demonstrated with the fact that up until today, not many CKD hybrid cars have been launched to take advantage of the CKD hybrid duty exemptions. This is because while they were consulted, the car companies were kept in the dark until the actual announcement of NAP 2014 to the public in January this year. Since it was announced at such a late stage, the first fruits will only be reaped in Q1 2015.

    Once these duty exemptions for CKD hybrid cars expire, the only way to get any kind of incentives under NAP 2014 would be through “customised incentives” under the EEV policy. Of course, there’s also the duty exemption for CKD electric cars, which is scheduled to end in December 31, 2017, but up to now, no passenger car manufacturer has taken it up.

  • Malaysia Budget 2015 – RON 95, diesel fuel and LPG exempted from GST; subsidy rationalisation “soon”

    2013_Toyota_Vios_fuel_test 001

    Prime Minister Datuk Seri Najib Razak has confirmed in today’s Malaysia Budget 2015 announcement that RON 95, diesel and LPG will be exempted from the Goods and Services Tax (GST) that will come into effect in April 2015. This brings to a close various rumours on the matter over the past few months.

    With this announcement, RON 95, diesel and LPG will stay at their current prices (RM2.30, RM2.20 and RM1.90 per litre/kg respectively), at least until the next fuel price revision. Not surprisingly, RON 97 was not mentioned, so it’s safe to assume that the premium unregulated fuel will be subjected to the 6% GST come April, effectively raising the price from RM2.75 to RM2.92.

    As for the much-talked about subsidy rationalisation plan of petrol, diesel and LPG, Najib Razak mentioned that it will be implemented in stages, with the government mechanism to be officially announced “in the near future.” Last we heard, the subsidy rationalisation of diesel is expected in January, while the plan for petrol will follow at a later date.

    On a side note, since the 1Malaysia People’s Aid (BR1M) rates have again been increased by between RM50 to RM300, will we see yet another fuel price hike soon? Tell us what you think of this in the comments below.

  • Malaysia Budget 2015 Live Updates (Auto/Transport)


    Budget 2015 will be announced by Prime Minister Datuk Seri Najib Razak at 4 pm today. We will be posting live updates on any automotive-related announcements from his speech here. Watch this space for updates.


    • RON 95 petrol, diesel and LPG – NO GST
    • Subsidy rationalisation of petrol, diesel and LPG to be done in stages, government mechanism to be announced “in due time”


    • Construction of Sg Besi-Ulu Klang Expressway (SUKE), 59 km stretch, at a cost of RM5.3 billion
    • Construction of Lebuhraya Pantai Barat (West Coast Expressway) from Taiping to Banting, 276 km, at a cost of RM5 billion
    • Construction of Damansara-Shah Alam Expressway (DASH), 47 km, at a cost of RM4.2 billion
    • Construction of Lingkaran Luar KL to Hubungan Timur, 36 km, at a cost of RM1.6 billion
    • Construction of MRT Phase 2 Selayang to Putrajaya stretch, 56 km, at an estimated cost of RM23 billion
    • Construction of Pan Borneo Highway, 1,663 km (936 km in Sarawak, 727 km in Sabah), at a cost of RM27 billion
    • LRT3 project connecting Bandar Utama to Shah Alam and Klang, at an estimated cost of RM9 billion
    • To develop electric vehicle manufacturing industry, Sustainable Mobility Fund of RM70 million to be established under SME Bank – 50 electric buses to be introduced initially
    • Facilitation of Bas Antarabandar (inter-city bus services) for those who live outside the city but work in KL – routes are Rawang-KL, Klang-KL and Seremban-KL, monthly fare is discounted by 30%
    • Upgrading of stage bus services with existing bus operators in Kuching, Ipoh, Seremban, Kuala Terengganu and Kangar
    • Electric Train Service (Ipoh-Butterworth) to start in April 2015
    • Rural road upgrade project, 635 km, including trunk roads in Sabah and Sarawak, RM943 million allocated

    6.15 pm – The Prime Minister has finished his Budget 2015 speech.

  • Perodua hopes for easier car financing in Budget 2015


    It’s T-minus one day to the tabling of Budget 2015. The Malaysian Automotive Association (MAA) has expressed their wishes; now it’s Perodua’s turn. The Rawang-based carmaker hopes car financing will be made easier for buyers, reports The Malaysian Insider.

    “The average (car loan) rejection rate is 28%. At one stage it was at 35%,” TMI quoted Perodua president and CEO Datuk Aminar Rashid Salleh as saying.

    “On the one hand, the government encourages people to use quality affordable vehicles, and while we respect the policy of the central bank, we hope it does not get too strict on those who meet the requirements.”

    Aminar hopes the government will make things easier for first-car buyers, particularly those who live in areas where efficient public transport is not available. “They need to have their own transport… we hope to provide a solution to that,” he told the publication.

    Apart from that, Aminar also expressed his concerns about rising living costs amidst the dawn of the implementation of the Goods and Services Tax (GST). GST is scheduled to take effect next April.

    Last week, Malaysia Automotive Institute (MAI) CEO Madani Sahari said that Budget 2015’s auto-related matters are likely to align themselves with NAP 2014’s aspirations. Budget 2015 is also expected to yield a list of zero-rated or tax-exempted items with respect to the upcoming GST – will our petrol and diesel be GST-ed?

  • MAA hopes excise duty exemptions for CKD hybrid, electric cars will be extended in Budget 2015 – report

    Above: Proton Iriz EV prototype in South Korea

    Budget 2015 will be tabled in Parliament this Friday, and ahead of that, the Malaysian Automotive Association (MAA) hopes the government will extend the excise duty exemptions given to locally-assembled (CKD) hybrid and electric vehicles, reports The Star.

    The latest iteration of the National Automotive Policy (NAP 2014) officially brought an end to duty exemptions for all electric vehicles (EV) and hybrids with engines displacing under 2.0 litres.

    The tax breaks are now reserved instead for those that are assembled in Malaysia (this time with no engine size limitations), with those for hybrids set to expire on December 31, 2015 and those for EVs set to end on December 31, 2017. Only two cars currently qualify for these tax breaks – the Honda Jazz Hybrid and Mercedes-Benz S 400 L Hybrid.

    Above: Honda Jazz Hybrid – the first hybrid vehicle to be assembled in Malaysia

    “What the MAA is requesting is for the time period (for the tax exemption) to be longer so that it can be more viable,” MAA president Datuk Aishah Ahmad told StarBiz, adding that she hoped there would be incentives to encourage electric vehicle- (EV) related infrastructure, like the setting up of more charging stations and reductions in battery costs.

    MAA statistics say 51,125 vehicles found Malaysian homes in August 2014 – a mild leap from 51,106 in the same month last year – while 444,534 units were sold year-to-date in August 2014, representing a 2.7% jump over last year’s 433,025, The Star reports. A few months back, MAA raised its 2014 total industry volume (TIV) forecast to 680,000 units – 10,000 more than before.

    So what can we expect from Budget 2015? Last week, Malaysia Automotive Institute (MAI) CEO Madani Sahari said that Budget 2015’s auto-related matters are likely to be aligned with NAP 2014’s aspirations. Budget 2015 is also expected to yield a list of zero-rated or tax-exempted items with respect to the upcoming Goods and Services Tax (GST) – will our petrol and diesel be GST-ed?

  • Budget 2015 likely to align itself with NAP – Madani

    madani wm

    Budget 2015‘s auto-related matters are likely to be aligned with the aspirations of the National Automotive Policy (NAP 2014), Malaysia Automotive Institute (MAI) CEO Mohamad Madani Sahari has said, according to a Bernama report.

    “The automotive segment in the forthcoming Budget 2015 should align itself with the NAP,” Madani told the national news agency. “The fundamentals of implementation could be touched on in the budget and cover factors such as infrastructure, skilled workers, supply chains and the development of technologies.”

    To be tabled in Parliament on October 10, Budget 2015 is also expected to yield a list of zero-rated or tax-exempted items with respect to the upcoming Goods and Services Tax (GST) – will our petrol and diesel be GST-ed?

    nap 2014 roadmap slide 1

    Bernama reports that NAP 2014, which concentrates on green initiatives, developing technologies and human capital, expanding the market and strengthening the industry ecosystem, has seen Proton and Perodua lead in the industry’s response. The launches of the Iriz and Axia are cited as examples.

    Non-national carmakers, however, have asked for an extension of incentives for electric and hybrid vehicles. “Electric vehicles also need an incentive in the form of an extended duty exemption or on tax,” BMW Malaysia MD Alan Harris told Bernama.

    “There was an incentive in the previous budget prior to the NAP 2014 which outlined that only locally-assembled vehicles would get incentivised. But electric vehicles are still new, not like the EEV (Energy Efficient Vehicle). Electric cars need a good take up and in the meantime, still need to be imported,” he added.

    Meanwhile, Mercedes-Benz Malaysia sales and marketing VP Kai Schlickum said the government took a step in the right direction with the NAP-incentivised locally-assembled hybrid.

    “It does benefit us, especially our S-Class Hybrid. With the S 400 L model qualifying and receiving full duty exemption, we are proud to be able to contribute in helping Malaysia fulfill its ambition of becoming a regional EEV hub.

    “However, since the (CKD) hybrid incentive will expire in 2015, we wish it to be extended,” he told Bernama.


Browse Stories by Car Maker

  Alfa Romeo
  Aston Martin

  Great Wall
  Land Rover




Latest Fuel Prices

RON 95 RM2.05 (0.00)
RON 97 RM2.60 (+0.02)
RON 100 RM3.11
VPR RM3.50
EURO 5 B10 RM2.15 (0.00)
EURO 5 B7 RM2.25 (0.00)
Last Updated 06 May 2021