Malaysia's Budget 2024: Live updates of all automotive and transport announcements

Welcome to WapCar.my's live coverage of Budget 2024, in which the Prime Minister Datuk Seri Anwar Ibrahim will be tabling in Parliament later today.

All transport-related highlights and quick updates will be posted here. 

The 2024 Budget is the highest of all budgets, with RM 398.3 billion allocated by the government.

Fuel subsidies

• Total subsidies have reached RM 81 billion in 2023, one of the world's highest
• RM 1.5 billion on subsidies for diesel spent so far
• Staggered subsidy rationalisation for diesel. In principle, subsidised diesel prices will continue to be enjoyed by selected users such as freight transportation companies, while other consumers will be subject to higher prices
• Current market price of diesel is RM 3.75 per litre, subsidy is RM 1.60 per litre

Also read: Budget 2024 on fuel subsidies reform: RON 95 petrol safe for now, diesel and EV users targeted but solar incentives extended

Electric subsidies

• Electric bill subsidies reduced for T10 group

Sales and services tax (SST)

• Increased to 8%, but 6% remains for car parks, logistics, food, and telecommunication

Roads

• RM 5.4 billion allocated to the Malaysian Road Record Information System (MARRIS) to maintain state roads
• RM 2.8 billion allocated for the maintenance of federal roads and bridges
• RM 100 million allocated for changing to LED streetlamps; saves electricity by 60%
• RM 50 million allocated to upgrade to 30 smart traffic lights at accident-prone federal roads
• RM 30 million allocated to fix small and unexpected issues on federal roads
• RM 50 million is provided as a matching grant with the Port Klang Authority to maintain Port Klang Road while also enforcing weight load limits on heavy vehicles

Rural infrastructure

• RM 1.63 billion allocated for the construction and improvement of rural and village roads
• RM 134 million earmarked for the installation of 60,000 street lamps and maintenance of over 500,000 existing ones
• RM 57 million dedicated to 115 projects, including 54 for the enhancement and construction of bridges

Tax and investment benefits

• To encourage further commitment from investors to make Malaysia a global service centre, a Global Services Hub tax incentive with an income tax rate incentive of 5% or 10% based on performance will be offered, up to 10 years

Technical and Vocational Education and Training (TVET)

• RM 100 million is allocated to provide industry-recognised professional certification to TVET graduates and as an incentive for the industry to collaborate with public TVET institutions
• RM 180 million allocated by the Skills Development Fund Corporation (PTPK), in collaboration with the TVET training fund will provide education loans to 12,000 trainees participating in skills certification programs
• RM 70 million allocated for the Academy in Industry Program to provide on-the-job training for up to 18 months, to address the shortage of local talent and skill mismatches
• Will benefit vocational and technical training schools, including automotive training

Carbon neutrality

• RM 2 billion to establish the National Energy Easy Transition Fund to achieve National Energy Transition Roadmap (NETR) aspirations
• RM 200 billion in financing value to encourage industries to transition towards a low-carbon economy
• Govt to further explore third-party access (TPA) model and develop suitable implementation methods to drive investments into new renewable energy
• Target to achieve 70% renewable energy capacity by 2050

Electric vehicles (EV)

• The government welcomes investments of over RM 170 million by leading companies such as TNB, Gentari, and Tesla Malaysia to install 180 EV charging stations
• Electric Motorcyle Adoption Incentive Scheme to be introduced for individuals with annual incomes below RM 120,000; providing rebates of up to RM 2,400 to buy electric bikes
• Individual income tax exemption for spending on EV charging facilities planned to be extended for another 4 years to 2027
• Tax deductions for EV rental costs planned to be continued for another 2 years to 2025
• Putrajaya to use electric vehicles (EVs) as official cars

Public transportation

• To support the needs of the LRT3 project, Prasarana Malaysia Berhad has agreed to acquire 150 electric buses and build 3 bus depots at a cost of RM 600 million
• RM 4.7 billion to resume 5 previously-cancelled LRT3 stations; Tropicana, Raja Muda, Temasya, Bukit Raja, Bandar Botanic stations

Solar panel incentives

• The government is prepared to extend the offer period of the Net Energy Metering (NEM) program until 31-December 2024, to encourage more residential premises to install panels
• The government is also developing a rooftop solar buy-back program
• The government calls upon companies to offer a 'Zero Capital Cost' subscription model, as will be offered by Gentari for residential categories

Revenue from special number plates

• A portion of the income generated from the sale of special license plates will be utilised to alleviate the burden of less privileged groups
• The Government agrees to continue bearing the driving test fees for motorcycle license class B2, e-hailing, and taxi licenses for the benefit of over 40,000 youths from underprivileged families
• A total of 100,000 helmets, including those for children, will be supplied for free to underprivileged families