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Budget 2020 highlights for the auto sector and highway-users
11/10/2019
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Chips Yap
RM50 million will be allocated for the repair and maintenance of roads leading to Port Klang so as to make it a regional maritime centre and a cargo logistic hub. The Transport Ministry is also conducting a feasibility study for a Klang Logistic Corridor which will be a new logistic highway to connect Northport, Westport and existing highways. Together with another proposal for a Serendah-Port Klang rail bypass, the two projects are expected to cost RM8.3 billion.
RM25 million will be allocated to set up contestable matching grant fund to support more pilot projects on digital applications such as autonomous vehicles, drone delivery, and blockchain technology.
Average toll charges will be reduced by 18% on all PLUS highways, saving users up to RM1.13 billion in 2020, and a total of RM43 billion until 2038 when the concession expires. PLUS-managed highways include the North-South Expressway (NSE), New Klang Valley Expressway (NKVE), Seremban-Port Dickson Expressway (SPDH), North-South Expressway Central Link (ELITE), Malaysia-Singapore Second Link Highway (Linkedua), the Butterworth-Kulim Expressway (BKE), East-Coast Expressway 2 (LPT2), and the Penang Bridge.
Additionally, 4 Klang Valley highways acquired by the government will see a 30% drop in toll fares during non-peak hours (but likely to be higher during peak hours). The highways are Shah Alam Highway (KESAS), Damansara-Puchong Expressway (LDP), Sprint Expressway (SPRINT), and SMART Tunnel (SMART). These four highways will not have toll charges from midnight until dawn.
The toll rate for the Sultan Abdul Halim Muadzam Shah Bridge or Second Penang bridge will be reduced to RM7 from RM8.50 (for Class 1 vehicles) from January 1, 2020. This will make the rate similar to the first Penang Bridge. Down south, RM85 million will be allocated to address the congestion problem at the Johor Bahru Causeway and Second Link.
The government is firm on moving to B20 biodiesel for the transportation sector at the end of 2020. This will have a positive impact on the oil palm industry as the expected volume is 500,000 tonnes a year.
The petrol subsidy programme (PSP) was announced recently and will be implemented from January 2020. Eligible recipients are those registered for BSH and they will get RM30 per month for car owners and RM12 per month for motorcycle owners. The Finance Minister also mentioned a second group which will get a ‘Kad95’ that entitled them to a subsidy on RON95 petrol at 30 sen less per litre (maximum 100 litres/month for cars, 40 litres/month for motorcycles). Details of ‘Kad95’ and criteria for qualification are not known. The fuel subsidy will only be made available when the market price (based on the APM) for RON95 petrol rises above RM2.08/litre.
Up to RM1 billion will be spent to improve roads around the country; of this, RM326 million will be used in Sabah and RM224 million for Sarawak. The Pan Borneo Highway project is still continuing but the project costs RM1.2 billion less due to cost-savings.
The government will spend RM450 million on the purchase of 500 electric buses for public transport use in cities. There are already 10 electric buses, each costing RM2 million, which have been going around Putrajaya for the past few years.
RM20 million will be allocated for the development of eSports, a growing international activity. UMW Toyota Motor was the first local car company to become involved in eSports with its GR Velocity eSports Championship in 2018 and a second season in 2019.
11/10/2019
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Chips Yap
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Chips Yap
Covering the motor industry since 1977 and still at it!
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