Every time the festive season arrives, the government will offer highway toll exemptions to ease the travel burdens of the rakyat travelling back to their hometowns.
However, this practice will be stopped starting this year in lieu of a more targeted approach.
According to the Minister of Works, Datuk Seri Alexander Nanta Linggi, this matter was decided at a cabinet meeting last year.
Nevertheless, he stated that the government will replace the cessation of free tolls with a more targeted approach.
Without specifying the targeted approach, he said: “There will be no more free tolls during the festive season.”
“We will announce the more targeted approach in the near future. Last year, the government decided that 2024 would be the final year for free tolls during the festive season.”
Photo by PROLINTAS
Previously, the government said that it had to cover the costs of providing free tolls.
On average, the government pays about RM20 million daily to the highway concessionaire companies through the provision of free tolls.
Just last year, the government paid RM80.07 million for Aidilfitri, RM42.31 million for Deepavali, RM41.21 million for the Chinese New Year, and RM38 million for Christmas.
The provision of free tolls last Christmas was the final instance of such government support during the festive season.
Deputy Minister of Finance Lim Hui Ying revealed that the targeted diesel subsidy, implemented in June this year, has enabled the government to generate savings of RM600 million a month.
She stated that these savings will be reinvested back into the community. This is further evidenced by the increase in the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) schemes in the coming year.
“The government’s savings will ensure that more resources are available to be directed towards other critical sectors, thereby improving the quality of life for the people, including public infrastructure, healthcare, and education.
“Certainly, this includes roads, hospitals, and schools. The STR and SARA for 2025 will also see an increase compared to 2024,” she said.
She made these comments in response to a question from the Member of Parliament for Permatang Pauh, Muhammad Fawwaz Mohamad Jan, who inquired about the government’s savings resulting from the decision to withdraw diesel subsidies.
Hui Ying also addressed an additional question from Mohammad Fawwaz regarding the government’s plans for implementing targeted diesel subsidies in Sabah and Sarawak.
She explained that the predominant mode of transportation for economic activities in those areas uses diesel, and their geographical conditions are two primary factors that have delayed implementation.
She clarified that this might be executed after the government completes its studies to address these challenges, ensuring that any decisions made do not burden the citizens.
In response to a question from Azli Yusof (PH-Shah Alam) concerning the weaknesses in the adjustment of diesel subsidies, Hui Ying acknowledged the shortcomings but confirmed that stringent monitoring is still in place.
“The government recognises the existence of weaknesses; that is why we are still in the process of engaging with stakeholders and industry players to make improvements. However, as this adjustment has now been in place for less than six months, we will continue to monitor it regularly,” she remarked.
The government does not intend to allow vehicles owned by non-citizens to enjoy the RON95 subsidy, said the Ministry of Economy.
The ministry said the move was in line with the government’s objective to strengthen the country’s fiscal positition as stated in the 12th Malaysia Plan (12MP).
“The implementation of the RON95 subsidy in 2025 is expected to provide savings of RM3.6 billion to government expenditure, or a reduction of 21.9 per cent, to the total subsidy expenditure, if the subsidies are only given to the B85 group and citizens.
“By ensuring that the targeted RON95 subsidies do not involve non-citizens, it will give savings of RM0.3 billion (2.0 per cent) to the government,” said the ministry in a written reply on the Parliament website today.
The Economy Ministry said this in response to a question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) on the ministry’s proposal to allow vehicles registered in Brunei to use RON95 in Malaysia.
The government will implement the targeted RON95 subsidy in the middle of 2025, covering 85 per cent of the people which will be determined based on Basic Expenditure of Decent Living (PAKW) of households.
Kenanga Research predicts that the government will provide more incentives to boost the demand for electric vehicles (EVs) among the people of Malaysia, as reported by Utusan Malaysia.
The research firm said that this aligns with the national target for EVs and hybrid vehicles to constitute 15 percent of the total industry sales (TIV) by the year 2030, and further, to reach 38 percent by 2040.
“The current vehicle sales are supported by new battery electric vehicles (BEVs) enjoying sales and service tax (SST) exemptions and EV facility incentives until 2025 for completely built-up (CBU) and until 2027 for completely knocked down (CKD) units.
“New registrations for BEVs surged from 274 units in 2021 to over 3,400 units in 2022, 10,159 units in 2023, and 6,617 units in the first half of 2024 (according to the quarterly report),” the research notes stated.
According to Kenanga Research, the targeted reduction in petrol fuel subsidies expected to be implemented by the government may also increase the interest of the M40 group in EVs.
“The M40 group may refrain from buying new cars, or they may choose to switch to smaller vehicles or switch to EVs to reduce their fuel bills after the rationalization of fuel subsidies,” it said.
Meanwhile, the research firm mentioned that the Malaysian government will also expedite the approval of charging stations across the country.
“The current operating number of charging stations stands at 3,951, and it is expected to nearly triple to 10,000 by the end of this year,” it said.
The research firm also maintained its forecast for new vehicle sales in Malaysia for 2024, also known as TIV, at 740,000 units (eight percent lower), which is slightly more conservative compared to the forecast of 765,000 units by the Malaysian Automotive Association (MAA).
Overall, the firm said, the income visibility level of the industry remains good, supported by a balance of orders totaling 170,000 units at the end of July 2024, unchanged from the previous month.
“More than half of this balance consists of new models, indicating the attraction of new models to car buyers,” it concluded, emphasizing that the rationalization of petrol subsidies and the implementation of e-invoices could put pressure on vehicle sales in the second quarter of 2024.
IN an effort to promote the use of electric vehicles (EV), Housing and Local Government (KPKT) Minister Nga Kor Ming said the government is considering waiving parking fees for EVs in cities.
According to a report by The Star, Nga said that the proposal is being mulled following the recent announcement to introduce “green plates” for EVs.
He added that his ministry is in discussions with the respective local councils to consider the feasibility of the proposal.
Nga cited London as an example, where a congestion fee of about RM90 per entry is imposed on non-EV cars into the city while EVs are exempted from parking fees.
In May, Transport Minister Anthony Loke, announced a new road tax structure for EVs that is up to 85% lower than the outgoing one.
It’s really nice to own an EV in Malaysia…
It is commendable that the government is always seeking ways to accelerate and promote the use of EVs among the public but as we know, all EVs in Malaysia are being sold above the RM100,000 mark, meaning those who can actually afford them are from the upper-middle to upper class.
So why does the government feel the need to give free parking to them? As far as this writer is concerned, parking fees have never been an issue for them.
It does feel like EV owners have been given enough privileges. Not only they are exempted from paying road tax until 2026, they can now park for free whenever they enter the city.
Instead of continuously giving away more benefits to just one group of people, it would be better if the government shifts its focus to bettering public transportation services so that they can be fully utilised by the rakyat.
Premier of Sarawak, Tan Sri Abang Johari Tun Openg, suggested that the federal government should seek and explore cheap and sustainable alternative energy sources to replace the use of diesel throughout Malaysia.
He said that this long-term effort would also eliminate the need for the diesel subsidy borne by the country.
Abang Johari. Photo by: Malay Mail
“If people still use diesel and ask for subsidies, when the prices go up, they will ask for more… so why not have alternative energy so there won’t be a need to use diesel,” he said in a press conference yesterday.
Abang Johari said, for example, the government could explore the use of emerging energy sources like hydrogen, which is being actively implemented by the Sarawak government.
On Sunday, Second Finance Minister, Datuk Seri Amir Hamzah Azizan, announced that the price of diesel at all retail stations in Peninsular Malaysia was set at RM3.35 per liter, the market price without subsidies, starting from 12.01 am on Monday.
Under “Budi Madani,” a cash assistance of RM200 per month is provided to private diesel vehicle owners, small-scale farmers, and small-scale commodity growers.
Registration for Budi Madani opened on May 28 following the discontinuation of diesel subsidies, and 30,000 diesel vehicle owners will receive the assistance starting today.
THE government has set the retail price of diesel fuel at RM3.35 per liter starting from midnight tonight (June 10, 2024).
According to the Second Finance Minister, YB Senator Datuk Seri Amir Hamzah Azizan, the new price will be enforced at all petrol stations across Peninsular Malaysia. The retail price of diesel fuel in Sabah, Sarawak, and Labuan will remain at RM2.15 per liter.
Through the implementation of diesel subsidy targeting, the government has set the diesel prices for eligible sectors as follows:
Subsidized Diesel Control System (SKDS) 2.0 using fleet card method for logistic vehicles, set at RM2.15 per liter
Subsidized Diesel Control System (SKDS) 1.0 for public land transport vehicles including school buses, express buses, ambulances, and fire engines at RM1.88 per liter
Subsidized diesel for fishermen remains at RM1.65 per liter
The subsidy targeting is introduced in the form of cash assistance through the following initiatives:
Individual BUDI Cash Assistance of RM200 per month for citizens who own private diesel vehicles
Agri-Commodity BUDI Cash Assistance of RM200 per month for small-scale farmers and commodity smallholders
It is understood that the first group of over 30,000 recipients will benefit from Individual BUDI and Agri-Commodity BUDI assistance starting tomorrow (June 10, 2024).
Application for the Subsidy Assistance Program BUDI MADANI, involving private diesel vehicle owners, small farmers, and small commodity planters, will open today (May 28, 2024).
Qualified recipients will receive BUDI MADANI assistance of RM200 per month in line with the implementation of diesel subsidy distribution.
Second Finance Minister, Senator Datuk Seri Amir Hamzah Azizan said, private diesel vehicle owners meeting specific eligibility criteria can apply under the BUDI Individual category.
While small farmers and small planters can apply under the BUDI Agri-Commodity category.
“The follow-up implementation statement to the Prime Minister’s National Address by Datuk Seri Anwar Ibrahim last week regarding the Cabinet’s decision to implement diesel fuel subsidy distribution involving consumers in Peninsular Malaysia,” he said in a statement.
For the BUDI Individual category, applicants must be Malaysian citizens, own registered private diesel vehicles with the Road Transport Department besides luxury vehicles under 10 years old.
The owned vehicles must have active road tax and individual or spouse annual income of RM100,000 and below.
As for the BUDI Agri-Commodity category, applicants must be registered as small farmers or planters with relevant agencies under the Ministry of Agriculture and Food Security (KPKM) or the Ministry of Agriculture and Commodities (KPK).
Applicants should be active commodity small farmers or planters with annual agricultural sales between RM50,000 and RM300,000.
“Each application received will be cross-checked with data under the Inland Revenue Board of Malaysia (LHDNM) to exclude luxury vehicle owners under 10 years old and high-income individuals (T20),” he said.
Applications can be made online at the website https://budimadani.gov.my, which will be open throughout the year.
For applications made and approved before June 3, the first BUDI MADANI will be received by mid-June, with subsequent assistance distributed monthly.
While for applications approved after June 3, the first BUDI MADANI will be received within two weeks and subsequently on a monthly basis.
BUDI MADANI will be credited to the recipient’s bank account every month, while recipients without bank accounts can claim BUDI MADANI in cash at any National Savings Bank (BSN) branch across Peninsular Malaysia.
Amir Hamzah said that the BUDI MADANI Program complements the Government’s existing efforts in targeting diesel subsidies through the MySubsidi Diesel system managed by the Ministry of Domestic Trade and Consumer Affairs.
So far, nearly 90,000 fleet cards have been issued to companies in the public land transport sector and the land freight transport sector.
“As frequently emphasized by the Prime Minister, diesel subsidy distribution is among the fiscal reform measures under the MADANI Economic framework, to build Government financial sustainability and enhance Malaysia’s competitiveness.
“The BUDI MADANI initiative reflects the integrated efforts of the MADANI Government machinery to ensure that the diesel subsidy distribution mechanism is comprehensive, efficient, and effective, so that the logistics sector and the majority of the people are continuously protected,” he added.
For more information and to apply for the BUDI MADANI eligibility requirements, visit https://budimadani.gov.my.
Applicants can also contact the BUDI MADANI assistance hotline at 1-800-88-2747 / 03-8882 4565 / 03-8882 4566 or via email at budimadani@treasury.gov.my.
Further inquiries and information can also be obtained at all Inland Revenue Board offices across Peninsular Malaysia.
The government is now in the early stages of reviewing and investigating the possibility of establishing a “lemon law,” said Minister of Domestic Trade and Consumer Affairs, Armizan Mohd Ali.
Photo: Malay Mail
Speaking to FMT, Armizan stated that Malaysia is actively addressing consumer protection issues related to damaged vehicles and analyzing international practices before adapting them for local use.
He commented on the demand by the Penang Consumers Association (CAP) for the introduction of a “lemon law,” which is a legal remedy for consumers who purchase faulty vehicles, whether new or old, that fail to meet specific quality and performance criteria within a specific period.
The United States, Singapore, South Korea, China, and the Philippines are among the countries that implement such laws.
However, Armizan mentioned that the Consumer Protection Act 1999, which is enforced in Malaysia, also protects consumers from faulty vehicles.
“The Act protects consumers in several ways related to faulty vehicles, even though it is not specifically a ‘lemon law’ and does not offer specific remedies such as repurchasing a car that cannot be repaired. It provides various provisions that can be used to address faulty vehicle issues.”
Recently, there have been two reports of newly purchased vehicles breaking down, which have been widely shared on social media.
A clerk, S Nagakanni, reported that her new Perodua Bezza broke down eight hours after purchase, and she had to continue paying the monthly loan of RM537, even though the car was stranded at the service center.
Noriya Mamat from Terengganu also stated that her newly purchased Honda HR-V was stranded at the service center for months after sending it for servicing one month after the purchase upon reaching a mileage of 1,000km. She mentioned that she had to make monthly payments of RM1,500 for a car that she couldn’t drive at all.
The government has agreed to provide toll-free highways across Malaysia for two days in conjunction with the Christmas celebration on December 25.
Deputy Minister of Works, Datuk Seri Ahmad Maslan, stated that the toll exemption will be effective on December 23 and 26, 2023, for all types of vehicles.
“The decision was made after a cabinet meeting on December 6 in conjunction with this year’s Christmas celebration.
The exemption is granted for all types of vehicles on all highways within the country, except for two toll plazas at the national border, namely the Bangunan Sultan Iskandar Toll Plaza and the Tanjung Kupang Toll Plaza,” he explained in a press conference today.
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