Budget 2023 – all auto and transport-related points – paultan.org

Malaysia’s revised Budget 2023 (Bajet 2023) is presently being tabled by finance minister and prime minister Datuk Seri Anwar Ibrahim in parliament. As with previous editions, we will be monitoring his speech for any automotive- and transport-related matters.

The original tabling of Budget 2023 by the previous administration in October 2022 brought the announcement that fully-imported (CBU) electric vehicles would be exempt from import and excise duties until December 31, 2024, an extension of a year from the previous end date of December 31, 2023.

More EV incentives could be announced today, given the broad hints that have already come about on the matter. Last month, natural resources, environment and climate change minister Nik Nazmi Nik Ahmad said that the government intends to offer additional EV incentives, and earlier this week minister of international trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that proposed incentives had been submitted to the finance ministry.

Also expected to be included in the revised budget is the announcement of a targeted fuel subsidy, which Anwar has said is a topic he wants to address as quickly as possible.

In addition to automotive-related matters, we’ll also be looking out for any public transport and infrastructure news. Live updates on these will be posted here, so stay tuned.

LIVE UPDATE POINTS

In his speech, Anwar said there was a pressing need to plug leakages from wastage as well as irregular payments and collections, something highlighted in the Auditor General’s reports for 2020 and 2021. The reports revealed that there was a leakage of almost RM3 billion, resulting in the loss of public money. One example of this is in the under-collection of vehicle import duty, where the government has lost RM72 million due to a weak import duty collection process.

In addition, there is also a leakage in the implementation of diesel subsidies – it is estimated that nearly RM10 billion worth of diesel subsidies were misappropriated last year.

Absorbing the cost of licence tests
The government will bear the cost of riding test for B2 motorcycle category (below 250 cc),
It will also absorb the cost for taxi, bus and e-hailing licence PSV test fees

Electricity tariffs
Electricity tariffs have been maintained for all domestic consumers and SME businesses, but those for all large companies (except those in the food and agriculture sector) have been increased. This means that there will be no impact in costs to charging an EV at home.

Airport upgrades
The government says it has plans to expand and improve the capacity of Penang International Airport and Subang Airport.

Upgrading and maintaining federal and rural roads

RM2.7 billion will be allocated to maintain and upgrade federal roads.
RM1.5 billion will also be provided to upgrade rural roads and build new ones.

On the issue of potholed roads, district JKR offices will speed up the paving of federal road damage as well as other urgent repairs based on complaints received from the people. RM100,000 will be allocated to each district for this purpose.

Road lighting infrastructure to be improved
A total of RM50 million will be provided to install street lights, especially in high accident areas.

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