Malaysia Budget 2020 Archive

  • Budget 2020: RM1 billion to improve rural roads, RM450 million for 500 electric public transport buses

    The goodies continued to flow out during the tabling of the Malaysia Budget 2020, with the national road and public transport also receiving some allocations. Finance minister Lim Guan Eng announced that the government will dole out a total of RM1 billion for the upgrading of rural roads in Malaysia, including RM326 million for Sabah and RM224 million for Sarawak.

    He also confirmed that the government remains committed to completing the Pan-Borneo Highway, but the ongoing cost rationalisation has so far managed to relieve RM1.2 billion from the project cost. This, said Lim, has allowed for the planning of more projects to spur economic growth, including a 165 km Trans-Borneo Highway to connect Sabah and Sarawak to Eastern Kalimantan.

    Elsewhere, the federal government has also set aside RM4.85 billion of funds from the Malaysia Road Record Information System (MARRIS) for all state governments to maintain and upgrade roads, which was not allowed under existing guidelines. Each state is able to upgrade roads, slopes, bridges and drains utilising up to 15% or RM20 million of those funds, whichever is lower.

    Meanwhile, to reduce congestion on the Johor Causeway and Second Link, the government will invest RM85 million to improve vehicle and traffic flow through the Customs, Immigration and Quarantine Complex (CIQ). This will include the opening of an additional 50 counters for motorcyclists, as well as the streamlining of immigration and PLUS counters.

    Another RM50 million will be used to maintain and upgrade the roads to Port Klang, as part of efforts to turn it into a regional maritime centre and cargo logistics hub. The transport ministry will also conduct feasibility studies on the Serendah-Port Klang Rail Bypass for cargo shipments and the Klang Logistics Corridor highway connecting Northport and Westport for commercial vehicles, both expected to cost RM8.3 billion.

    As for public transport, the government plans to spend RM450 million to purchase up to 500 electric buses of various sizes, which will be used in selected cities. It will also allocate RM146 million to subsidise bus operators for last-mile transportation in rural and urban areas.

    Last but not least, the Rapid Transit System (RTS) between Johor Bahru and Singapore will indeed proceed, in order to further reduce causeway congestion. The government is also proud of its initiative to introduce My50 and My100 monthly travel passes providing unlimited rail and bus travel, which Lim said has benefitted more than 120,000 users so far.

     
     
  • Budget 2020: Kad95 for non-BSH recipients – fuel subsidy up to RM30/mth for cars, RM12/mth for bikes

    Before today, those who are not in the Bantuan Sara Hidup (BSH) net assumed that they will not be eligible for any form of fuel subsidy when Peninsular Malaysia fuel prices are floated gradually in January 2020. However, there was some good news announced by finance minister Lim Guan Eng this afternoon.

    Now, there will be another category for the petrol subsidy programme (PSP). A “Kad95” fuel subsidy card for those whose household income are below RM4,000, but are not eligible for BSH for various reasons. Ownership of a Kad 95 will enable one to enjoy fuel subsidy of 30 sen per litre, limited to 100 litres per month for cars and 40 litres per month for motorcycles.

    Max this out and you’ll reach a cap of RM30 for cars and RM12 per month for motorcycles, which is the same amount BSH recipients get, although the latter group gets the amount banked in automatically to their accounts every four months (first payment in April 2020).

    The Kad95 system will be implemented progressively in the first quarter of 2020, Lim said. More details, such as how to obtain the card, would surely be announced closer to next year. To recap, here are the main points of the PSP:

    • The subsidy will only be given to car/motorcycle owners, and is limited to one vehicle per recipient. If a person owns a car and a motorbike, then he/she will receive the higher subsidy, which is for the car. The car or motorcycle must be registered under the recipient’s name.
    • The subsidy rate will be capped at RM30 a month for car owners, and RM12 a month for motorcycle owners.
    • The government will reimburse the subsidy once every four months, so car owners will receive RM120 and motorcycle owners will receive RM48 every four months. The payment method will see cash being directly credited into the recipient’s registered bank account. The first payment is scheduled for April 2020.
    • The household income of the recipient must not be more than RM4,000 per month.
    • To qualify, a recipient can only own a maximum of two cars and two motorcycles at any one time in his/her household. See the info-graphic panel above for a clearer picture of what vehicle combination qualifies and what doesn’t.
    • For cars, the pre-requisite is that the engine displacement must be:
      1,600 cc or below
      – or above 1,600 cc, but only for cars that are 10 years old and above
    • For motorcycles, the pre-requisite is that the engine displacement must be:
      150 cc and below
      – or above 150 cc, but only for motorcycles that are seven years old and above

    For the rest of us not covered by the PSP, fuel prices will floated next year, gradually, so be prepared. Based on the finance ministry’s Automatic Price Mechanism (APM) calculations, RON 95 petrol would be priced at RM2.37 per litre for the coming week without the current RM2.08 price cap in place.

     
     
  • Budget 2020: govt to acquire Kesas, LDP, Sprint, Smart – tolls rates up to 30% less, free during off-peak hours

    This just in. The government’s plan to takeover four highways in the Klang Valley has been given the green light during the tabling of Budget 2020. The move, which was initially put on hold since July, will see motorists enjoy toll savings of up to 30% during near-peak hours and free during off-peak hours. Exactly how this system will be implemented, as well as the cut-off times, will be announced soon.

    The highways are Shah Alam Expressway (KESAS), Damansara-Puchong Expressway (LDP), Sprint Expressway (SPRINT) and SMART Tunnel (SMART). Finance minister Lim Guan Eng says the move will help those who use the highway save nearly RM180 million a year, or RM2 billion over the respective concession periods (between nine and 23 years).

    During the initial announcement in July, Lim said the takeover would cost RM6.2 billion, but it will be financed through bond issuance, with congestion charges used to pay off the debt. The new congestion charge system is expected to be implemented on January 1, 2020.

    He also said the government hopes to abolish the toll system altogether as promised in its manifesto, but added that nominal toll charges may still be imposed to cover operational and maintenance costs.

    Similarly, PLUS Malaysia will offer a discount of 18% on toll charges beginning from 2020, potentially helping highway users save up to RM1.13 billon in 2020, and RM42 billion over the concession period which ends in 2038. Thoughts, guys?

     
     
  • Budget 2020: Second Penang Bridge toll down to RM7

    The Malaysian Budget 2020 (Bajet 2020) tabled today by finance minister Lim Guan Eng will see the toll rate at the Second Penang Bridge (Jambatan Sultan Abdul Halim Muadzam Shah) reduced from the present rate of RM8.50 to RM7, in effect matching the RM7 toll rate at the first Penang Bridge. This toll reduction will take effect on January 1, 2020.

    The concessionaire for the Second Penang Bridge, Jambatan Kedua Sdn Bhd (JKSB) was reported in August last year to be financially unstable despite satisfactory toll collection, and was urged to provide toll discounts in order to attract more users. Traffic as of 2017 recorded an increase of 1.97 million vehicles, or 32.4% compared to 2016, and toll collection stood at RM38.64 million or 29.5% higher than the previous year.

    Motorcyclists no longer pay toll for using both Penang bridges as well as the Second Link to Singapore from January 1 this year, at an estimated cost to the government of RM20 million. Prior to winning the 14th General Election, the Pakatan Harapan coalition promised to remove toll collection if it wins GE14, however the new administration stated in August 2018 that the government would have to fork out RM400 billion if it was to abolish toll collection all at once.

     
     
  • Budget 2020: PLUS Malaysia to offer 18% discount on toll charges from 2020 – motorists save RM1.13 bil

    At the tabling of the Malaysian Budget 2020 (Bajet 2020), it has been announced that PLUS Malaysia will offer a minimum reduction of average toll charges by 18% discount for all its highways from 2020.

    The move would save highway users up to RM1.13 billion in 2020, and RM43 billion over the entire concession period until 2038, according to finance minister Lim Guan Eng.

    Aside from this major announcement, the Pakatan Harapan government also stated that it remained committed to abolish toll collection, as prescribed in its manifesto. However, this will be done gradually, with proper negotiations necessary to ensure the best price when taking over every toll concession.

    In relation to this, the government will consider all proposals, including those from Khazanah Nasional, to acquire or dispose all shares of PLUS Malaysia. Recently, several non-governmental entities have expressed their interest to purchase the toll concessionaire, although no offers have been accepted so far.

    Currently, ownership of the concessionaire is shared between UEM Group – a subsidiary of Khazanah – and the Employees Provident Fund (EPF). The former holds a 51% share in PLUS, with the remaining 49% owned by EPF.

     
     
  • Budget 2020 – all auto and transport-related points

    The Malaysian Budget 2020 (Bajet 2020) will be tabled by finance minister Lim Guan Eng at 4.00 pm today. Stay tuned for possible news on related items such as tolls, fuel prices, public transport, road networks, etc – we will be posting live updates on any automotive- and transport-related announcements made in his speech here.

    UPDATE: Story now contains all relevant transport/auto-related points covered in the Budget.

    Toll collection

    • A minimum reduction of average toll charges by 18% discount will be introduced across all PLUS highways. This is expected to save North South Highway users up to RM1.13 billion next year, and a total of RM43 billion over the entire concession period until 2038.
    • The toll rate for the Second Penang bridge will be reduced to RM7 from RM8.50 from January 1, 2020.
    • The cabinet has approved the proposed offer to acquire four Klang Valley highways – the Shah Alam Expressway (KESAS), Damansara-Puchong Expressway (LDP), Sprint Expressway and SMART Tunnel – to be funded via government-guaranteed borrowings.

      The government says the introduction of congestion charges that will be lowered by up to 30% of the present toll rates during near peak and normal hours and free during off-peak hours will provide a savings to the highway users nearly RM180 million a year, or RM2 billion over the respective concession periods.

    Fuel

    Petrol subsidy programme (PSP)

    • The recently-announced RON 95 subsidy scheme will be introduced in Peninsular Malaysia in January 2020. The petrol subsidy programme (PSP) will have two eligible categories.

      The first is for eligible recipients of the cost of living aid (BSH) – the petrol subsidy receivable will be RM30 per month for car owners and RM12 per month for motorcycle owners. This subsidy will be in the form of cash transfer, deposited into the recipient’s bank account every four months. The first payment will be made in April 2020.

      The second covers all other motorists who are not BSH recipients – they will receive a special Kad95 which will allow them to enjoy subsidy on RON 95 petrol at a discount of 30 sen per litre, limited to 100 litres per month for cars or 40 litres per month for motorcycles. The Kad95 will be implemented progressively during the first quarter of 2020.

      Once the PSP is introduced, RON 95 retail prices will be gradually floated. The fuel subsidy will kick-in whenever the RON 95 market price, determined by the Automatic Pricing Mechanism (APM) is above RM2.08 per litre but no fuel subsidy will be given when the market-determined APM price falls below RM2.08 per litre.

    • RM2.2 billion has been allocated for the PSP, which will benefit more than eight million motorists.

    B20 biodiesel

    • The government will implement the use of biodiesel B20 for the transport sector, starting from the end of 2020. Expected volume is 500,000 tonnes a year.

    Roads

    • RM1 billion will be spent to improve roads in the country, with RM326 million being allocated for Sabah and RM224 million for Sarawak.
    • Work continues on the Pan Borneo Highway, but the government says that it has saved RM1.2 billion in costs for the project.
    • RM50 million will be allocated for the repair and maintenance of roads leading to Port Klang.

    Autonomous vehicle pilot project

    • The government will set up a contestable grant fund to spur more pilot projects on digital applications, which will also include autonomous vehicles.

    Public transport

    Unlimited access monthly pass

    Buses

    • The government intends to invests RM450 million to acquire up to 500 electric buses of various sizes for public transport in selected cities nationwide.
    • The government will further support last-mile connectivity in rural and urban areas by subsidising bus operators with an allocation of RM146 million next year.

    Railway

    • The government intends to proceed with the Rapid Transit System (RTS) between Johor Bahru and Singapore. No timeline for its implementation was given.
    • The rail tracks from Gorge Line between Halogilat Station to Tenom Station in Sabah will be upgraded at a cost of RM50 million
     
     
 

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Latest Fuel Prices

PETROL
RON 95 RM2.08 (0.00)
RON 97 RM2.67 (+0.07)
RON 100 RM3.19
VPR RM3.50
DIESEL
EURO 2M RM2.18 (0.00)
EURO 5 RM2.28 (0.00)
Last Updated 12 Oct 2019