Prime Minister cum Finance Minister, Datuk Seri Anwar Ibrahim has just announced Budget 2024 for Malaysia. Many things have been discussed during the budget presentation, and here are EV-related updates you need to know from Malaysia’s Budget 2024.
First and foremost, the government is welcoming investments of over RM170 million from companies such as TNB, Gentari, and Tesla to install 180 EV charging stations across Malaysia.
The government has also suggested extending the offering of individual income tax rebates of up to RM2,500 for electric vehicle (EV) facility-related spending from the original period of two years to four years. Tax rebates for EV rental have also suggested to be be extended by another two years.
Besides welcoming investments from EV companies, the federal government will also start using EVs as official cars, according to the prime minister during the Budget 2024 presentation. The government has a track record of using internal combustion engine (ICE) powered cars such as the Toyota Vellfire, Toyota Alphard, and Proton Perdana in the recent past.
RELATED: Malaysia targets 10,000 public EV chargers by 2025 – 1,246 built so far
Other transport-related updates from the Budget 2024 include the third lane expansion of the Plus North-South Expressway – from the area of Sedenak to Simpang Renggam. The expansion will cost a total of RM931 million.
The targeted diesel subsidy policy has also been announced. The subsidised price for diesel fuel will continue to be at RM2.15 per litre, which is still cheaper compared to the market price of RM3.75 per litre.
According to user data, sales of subsidised diesel fuel have risen by 40% since 2019, while sales of diesel vehicles in Malaysia have only risen by less than 3%. This suggests the probability of serious smuggling cases happening in Malaysia caused by the affordable fuel price.
To prevent these cases from happening, the government intends to implement the diesel fuel subsidy in phases. The diesel subsidy will be made available to selected consumers only such as goods transportation companies.
Other consumers will be charged higher prices for diesel fuels. This is said to help prevent subsidy leakage, and simultaneously lighten the impact of goods prices for the people.
To support the LRT3 project, Prasarana Malaysia has agreed to obtain 150 electric buses and build three bus depots at the cost of RM600 million.
RELATED: Fraction of M40 group may be excluded from targeted fuel subsidy, says Kenanga Research
