Recap of the RMK-12; All you need to know regarding the automotive sector

During the reading of the 12th Malaysia Plan, or Rancangan Malaysia Ke-12 (RMK-12), at the Dewan Rakyat yesterday, Prime Minister Datuk Seri Ismail Sabri Yaakob revealed a few changes that will directly affect the automotive sector. Here’s a brief recap.

• To achieve its carbon-neutral goal by 2050, the government plans to introduce a new carbon policy and carbon tax by 2022. Read more about it here.
• Putrajaya has started a study to identify mechanisms in phasing out old vehicles in a sustainable manner. This means that the government is relooking at the idea of introducing a vehicle end-of-life (ELV) policy previously mooted in 2009.

• Proposal to include extra benefits such as zero-rated import and excise duties and sales tax for the purchase of electric vehicles (EV). The government has also suggested the zero-road tax incentive be applied to fully-imported (CBU) EVs.
• An energy-efficient driving programme to be made mandatory for all driving licence classes in Malaysia. The programme will teach drivers how to drive in an environmentally-conscious manner.
• To scale up the use of palm oil-based biodiesel from the current B7 and B10 biodiesel to B15 and B20. The government plans to move on to the use of B30 biodiesel fully by 2025. 
• The government is considering reducing parking space and increasing parking charges in city centres. This is to discourage dependence on private vehicles and boost the reliance on public transport.

• To work with relevant parties to improve travel connectivity to increase reliability of the public transport systems. The government suggests aspects like increased feeder bus frequency and realigning routes as part of the measure. 
• Putrajaya also announced an interim maintenance measure to extend the lifespan of roads and bridges with the use of new technologies such as ultra-high-performance concrete (UHPC).

Though these plans were announced yesterday, the government has yet to elaborate more details. Stay tuned for more updates.