Malaysia’s Budget 2026 is now being tabled (October 10, 4pm) by finance minister and prime minister Datuk Seri Anwar Ibrahim. As with prior editions, we will be posting live updates on matters related to the automotive and transport sector here – keep refreshing this page.
Langkawi, Labuan duty-free vehicles cannot exceed RM300,000 in value come January 1, 2026
- Luxury vehicle owners taking advantage of vehicle tax exemptions in Langkawi and Labuan
- To address this leakage, the government is proposing that vehicle tax exemptions in Langkawi and Labuan be limited to vehicle values not exceeding RM300,000 come January 1, 2026.
- Full story here
‘Lemon law’ elements to be in Consumer Protection Act
- Following the enactment of the Consumer Credit Act, the government will amend the Consumer Protection Act to include ‘lemon law‘ elements to protect consumers’ rights.
- Full story here
Sabah, Sarawak highway projects
- Nine Pan Borneo Sarawak packages fully completed and open to the public.
- Four Pan Borneo Sabah Phase 1A packages have been completed. RM1.67 billion provided for in 2026 for Pan Borneo Sabah to be implemented according to schedule.
- Sarawak-Sabah Link Road (SSLR) Phase 1 expected to be completed in November 2026; SSLR 2 currently under construction, expected to be completed in mid-2029.
- The Trans Borneo Highway (LTB) project completes the road connection between Sabah and Sarawak. The Letter of Award (LOA) will be issued as early as the first quarter of 2026.
- The government will upgrade the existing road pavement structure for the red line alignment in the Durin and Salim sections, Sibu, Sarawak at a cost of RM350 million.
- Overall, all these public infrastructure projects involve a cost of RM48 billion.
- Full story here
Flood mitigation
RM2.2 billion to continue implementing 43 high-priority Flood Mitigation Plan (RTB) projects according to schedule, including 12 new RTBs that will be implemented next year, including:
- RTB Sungai Mengkibol, Mukim Kluang, Kluang, Johor
- RTB Sungai Chaah, Segamat, Johor
- RTB Sungai Temin/Bata, Kubang Pasu, Kedah
- RTB Sungai Lenggeng, Seremban, Negeri Sembilan
- RTB Sungai Gemencheh, Tampin, Negeri Sembilan
- RTB Sungai Jimah Phase 2, Port Dickson, Negeri Sembilan
- RTB Sungai Si Rusa, Port Dickson, Negeri Sembilan
- RTB Sungai Nyiur, North Seberang Perai, Penang
- RTB Sungai Trong, Larut, Matang and Selama, Perak
- RTB Sungai Buloh Phase 2, Selangor
- RTB Sungai Buaya, Kuala Nerus, Terengganu
- RTB Anak Sungai Ibai, Kuala Terengganu, Terengganu
At the same time, other preventive works are also being carried out to avoid disasters:
- More than RM260 million to prevent, maintain and repair slopes nationwide including federal roads.
- RM55 million to clean and upgrade drains and ditches in all PBTs.
- Full story here
Deepavali: 50% toll discount for two days
- Full story here
Public transport
- RTS Link Project to commence operations by January 1, 2027, capable of transporting 10,000 passengers per hour per direction during peak hours.
- Transit buses at a cost of nearly RM200 million, including adding new routes and additional buses in Johor Bahru to accommodate the needs of the upcoming RTS service.
- Free MyRailLife passes for KTM Komuter and Shuttle DMU train services for the disabled community, all schoolchildren, and will be extended to all children under 6 years old.
- ETS began operating to Kluang Station last August, while the final phase to Johor Bahru Sentral expected to be completed by the end of 2025.
- LRT3 is expected to be operational by the end of 2025, connecting Bandar Utama, Damansara to Johan Setia, Klang, capable of carrying more than 6,200 passengers per hour in each direction.
- ECRL Phase 1 Kota Bharu-Gombak is expected to be completed by the end of 2026. This will reduce the travel time from Kelantan to the Klang Valley to 4 hours.
- Upgrading of Electric Double Track Railway in Klang Valley Phase 2 is expected to be fully completed 2029. This will connect Bandar Tasik Selatan to Seremban and Simpang Pelabuhan Klang to Port Klang with a construction cost of RM4.1 billion.
- The efficiency of the Kelana Jaya Line LRT is increased through the replacement of 26 new train units at a cost of RM1 billion by Prasarana.
- The Mutiara Line LRT begins implementation which will benefit 1.8 million residents in addition to 3.5 million foreign visitors to Penang.
- 310 new buses will be received by February 2026 to increase the frequency of bus services in the focus areas.
- 300 vans for the Demand Responsive Transit (DRT) program will be fully operational by the end of this year, increasing intermediary van services for first- and last-mile access to consumers
- 1,450 electric buses and 300 electric vans will be acquired in phases until 2030 as part of the shift to low-carbon green transportation.
SOCSO (Perkeso) for e-hailing, delivery and freelance workers
- RM200 million for SOCSO contributions covering e-hailing, delivery and freelance workers.
- Platform operators must co-contribute 10 % toward insurance and retirement savings
- SOCSO Health Screening Programme to be expanded to public transport and goods drivers.
- Full story here
Speed limiters for heavy vehicles
- To assist in speed limit enforcement, the government proposes that the cost of purchasing speed limiters for heavy vehicles be given Accelerated Capital Allowance to be claimed within one year.
Road maintenance
- RM2.5 billion for the maintenance of federal highways including paving potholes, installing street lights in risky areas and replacing road furniture. RM700 million is reserved for G1-G4 contractors.
- RM5.6 billion from MARRIS to states to maintain state roads nationwide.
- RM30 million to strengthen the role of District Engineers to expedite minor repair works in districts including citizen complaints via the MYJalan application.
- The Malaysian Highway Authority will install 3,000 units of LED lights at several highway hotspots that are at risk of accidents.
- Full story here
‘Cash for clunkers’ scheme
- Cars over 20 years old that are not economically viable are at risk of compromising safety. The government together with national vehicle manufacturers will provide a matching grant of up to RM4,000 to encourage owners to dispose of old vehicles and purchase new national vehicles.
The post Malaysia Budget 2026 live updates (auto/transport) appeared first on Paul Tan's Automotive News.
