Malaysia’s Budget 2027 is set to be tabled today (October 9) at 3.30pm by finance minister and prime minister Datuk Seri Anwar Ibrahim. Keep refreshing this page for automotive/transport-related developments.

Total allocation for subsidies, assistance and incentives exceed RM80 billion

  • Including fuel subsidies, which are expected to stay high at RM40 billion

Gov’t and Grab to jointly fund a RM160 million package for e-hailing and p-hailing workers (full story here)

  • Increase in minimum earnings rates for e-hailing and p-hailing workers, assistance with vehicle maintenance and insurance costs, as well as SOCSO contributions
  • This is estimated to raise e-hailing drivers’ median net incomes by up to RM227 per month and those for p-hailing delivery workers by up to RM100 per month
  • 35% SOCSO matching contribution incentive for e-hailing and p-hailing workers, increased to 50% if the platform companies also bear the cost of contributions for the workers
  • EPF matching contribution incentive of up to RM600 per year, or RM6,000 over a lifetime
  • P-hailing sector to be regulated under APAD and LPKP

Johor Bahru congestion leading up to RTS Link

  • Elevated Autonomous Rapid Transit (E-ART) to be implemented
  • Stage bus routes and frequencies to be expanded
  • KTM Komuter frequency to be increased
  • Grab Shuttle services will be provided in key areas

Automotive Hi-Tech Valley, Tanjong Malim

  • To encourage wholly locally-owned automotive vendor companies to relocate their operations there, a tax deduction will be granted on eligible relocation costs of up to RM5 million for expenses incurred between January 1, 2027 and December 31, 2030

Malaysia Vision Valley 2.0, Negeri Sembilan

  • New road from KLIA to Bandar Enstek
  • Upgrade Pajam-Nilai-Salak road
  • Implementation of Klang Valley Double Tracking 2 project (KVDT2)

RM3.3 billion for Sabah and Sarawak roads

  • Letter of acceptance (LOA) for Trans-Borneo Highway’s Miri section already issued
  • LOA for Limbang and Lawas sections expected year-end
  • Sarawak-Sabah Link Road 1 and Pan Borneo Sabah Phase 1B targeted to complete end-2027
  • RM350 million in federal road maintenance expenditure earmarked for G1–G4 contractors in Sabah and Sarawak

22-km covered walkway connecting National Mosque, Merdeka Square and Central Market

  • Covered walkways also connecting residential areas with business premises, schools, clinics and public transport stations
  • Buggies for visitors, especially the elderly, at popular attractions such as the National Monument, Botanical Gardens and Carcosa Seri Negara

My50 to continue for the benefit of 300,000 Prasarana bus and rail users in the Klang Valley

  • MyKomuter50 introduced to benefit 40,000 KTM Komuter users – savings up to RM160 per month on average
  • Free passes for 360,000 schoolchildren, OKU (persons with disabilities) and children under the age of six

Prasarana to invest over RM3.4 billion to rehabilitate rail services

  • 42 new trainsets for ETS and KTM Komuter

ECRL Phase 1 (Kota Bharu-Gombak Integrated Terminal) expected to begin operations December

  • Line will be extended to Rantau Panjang

Road Transport Act to be amended to require drivers under influence of alcohol or drugs to pay compensation to victims

Mandatory telematics for commercial vehicles

  • Monitor speed, location and risky driving patterns, including integration with alcohol detection devices before start of journey
  • Voluntary implementation will be in place until 2027, while the government develops a driver database for enforcement purposes

Up to 100% investment tax allowance for green technology and sustainability projects

  • Including EV charging stations

One-off RM1,000 financial aid for 38,000 taxi and hire-car drivers, and 15,000 school bus drivers (full story here)

  • Following recent sale of special ‘H’ number plate series