• Bikes for Sale
  • News
  • Buyer’s guide
    • Buy a Motorcycle
    • First Rides & Reviews
    • Specs, Prices & Others
  • Lifestyle
    • Concepts & Custom
    • Electric Motorcycles
    • Events
    • Motorsport
    • Tips & Stories
    • Travel
  • Locals
imotorbike logo
  • Bikes for Sale
  • News
  • Buyer’s guide
    • Buy a Motorcycle
    • First Rides & Reviews
    • Specs, Prices & Others
  • Lifestyle
    • Concepts & Custom
    • Electric Motorcycles
    • Events
    • Motorsport
    • Tips & Stories
    • Travel
  • Locals
  • Facebook

  • Instagram

  • X (Twitter)

  • YouTube

  • LinkedIn

  • RSS

Industry

Motorcycle Prices Set to Rise 20% in Malaysia, Hitting B40 and M40 Groups Hard

Motorcycle Prices Set to Rise 20% in Malaysia, Hitting B40 and M40 Groups Hard
Hazique Zairill
January 31, 2025

New tax regulations could raise bike prices, hitting gig workers and commuters in the B40 and M40 groups.

Subscribe to our Telegram channel for instant updates!

The livelihoods of many Malaysians, particularly those in the B40 and M40 income brackets, could be severely impacted as motorcycle prices are expected to rise by up to 20% in the near future. This potential increase stems from the implementation of the Excise (Determination of Value of Locally Manufactured Goods for the Purpose of Levying Excise Duty) Regulations 2019, which could significantly raise the cost of locally assembled motorcycles.

Excise duty, a legislated tax imposed on specific goods imported into or manufactured in Malaysia for domestic use, has been a contentious issue in the automotive industry. Earlier this month, the Malaysian Automotive Association (MAA) confirmed that the industry received a temporary reprieve with the deferment of the excise duty revision, also known as the Open Market Value (OMV) or ‘402’ regulation, until December 31, 2025. Without this deferment, the regulation would have taken effect on January 1, 2024, leading to a sharp increase in vehicle prices.

Impact on Motorcycle Prices

The Motorcycle and Scooter Assemblers and Distributors Association of Malaysia (MASAAM) has warned that the excise duty revision could push prices of Completely Knocked Down (CKD) motorcycles—vehicles assembled locally from imported parts—up by 10% to 20%. For example, a motorcycle currently priced at RM10,000 could cost between RM11,000 and RM12,000 after the revision.

MASAAM president Hoo Wan Ting emphasized that this price hike would disproportionately affect Malaysians in the B40 and M40 income groups, who rely heavily on motorcycles for affordable transportation. “For those in need of basic transportation, including gig economy workers like delivery riders, this will be a massive increase,” Hoo told automotive news portal paultan.org.

Hoo also highlighted that over 90% of the motorcycle market in Malaysia consists of CKD models, particularly in the more affordable range. Unlike the car market, which offers a mix of CKD and Completely Built-Up (CBU) models, the motorcycle industry is heavily reliant on locally assembled units. This makes the sector particularly vulnerable to the excise duty revision.

Broader Implications for the Automotive Industry

The excise duty revision, first introduced in 2019, was initially deferred multiple times due to its potential to disrupt the automotive industry. If implemented, it could have increased prices of CKD cars by up to 30%, dealing a severe blow to new car sales. A collapse in sales would not only affect original equipment manufacturers (OEMs) but also their local suppliers, potentially leading to job losses across the industry.

MAA president Mohd Shamsor Mohd Zain recently confirmed that the excise duty regulation has been deferred once again, this time until January 2026. However, unless the government decides to permanently shelve or revise the regulation, Malaysians could face significantly higher vehicle prices as early as next year.

Calls for Government Intervention

MASAAM, along with the Malaysian Automotive Association (MAA) and the Malaysia Automotive Component Parts Manufacturers (MACPMA), has urged the government to reconsider the Excise Regulations 2019. Hoo stressed that the revision would have a cascading effect on the economy, particularly for low- and middle-income earners who depend on motorcycles for their daily commute and livelihoods.

“In alignment with MAA and MACPMA, MASAAM would also like for the government to relook into the Excise Regulations 2019 situation to avoid significant cost impacts on consumers,” Hoo said.

Malaysia

What’s Next?

As it stands, the excise duty revision remains a looming threat to the affordability of motorcycles and cars in Malaysia. While the latest deferment provides temporary relief, the automotive industry and consumers alike are calling for a long-term solution to prevent price hikes that could disrupt livelihoods and economic stability.

For now, Malaysians can breathe a sigh of relief, but the clock is ticking. Unless the government takes decisive action, the new year could bring with it a steep rise in transportation costs, further straining the budgets of those who can least afford it.

This article is based on statements from industry leaders and reports from paultan.org. For further updates on this developing story, stay tuned to our coverage.

Related Items2025featuredGovernmentmalaysianewnewstaxtax excise duty exemption Malaysia
To read the full story
login with google
login with facebook
or
Create an account for free
This won't cost you.
by clicking this button you agree to iMotorbike's visitor agreement
Already have an account? Sign in here
Click here to get notified on every new article
Industry
January 31, 2025
Hazique Zairill

Passionate sports and motorbike enthusiasts who believe in the phrase, "Writing is the painting of the voice."

Related Items2025featuredGovernmentmalaysianewnewstaxtax excise duty exemption Malaysia

More in Industry

Racing Against the Norm: Saidatul Zakirah’s Rise in Malaysia’s Racing Scene

Hazique ZairillJune 23, 2025
Read More

Ducati & Lamborghini Forge New Chapter in Italian Performance Legacy

Hazique ZairillApril 8, 2025
Read More

Dickies and Harley-Davidson Launch “Born to Be Alive” Collection

Hazique ZairillApril 3, 2025
Read More
CFMoto New V4 Engine

CFMoto Unveils New Advanced V4 Engine at EICMA 2024

Hazique ZairillNovember 12, 2024
Read More
Kawasaki Unveils World’s First Hydrogen-Powered Motorcycle

Kawasaki Unveils World’s First Hydrogen-Powered Motorcycle

Hazique ZairillAugust 8, 2024
Read More

Aveta Ranger Max Explorer 2023: A Week of Thrilling Clutchless Adventures

Muiz AzizDecember 12, 2023
Read More

Meet Moto Morini’s Stylish New Bikes 

Muiz AzizNovember 9, 2023
Read More

Shoei’s Neotec 3 Grasp

Muiz AzizNovember 7, 2023
Read More

Revolutionary Michelin Motorcycle Tires for 2024

Muiz AzizNovember 7, 2023
Read More

Royal Enfield’s Malaysia Expansion

Muiz AzizNovember 4, 2023
Read More

CFMoto Unveils Thrilling Lineup for EICMA 2023!

Muiz AzizNovember 1, 2023
Read More

Meet the 2024 Royal Alloy Youth Scooters

Muiz AzizOctober 25, 2023
Read More
We want to buy your bike Join us on Telegram
Scroll for more
Tap

Join us on Facebook

  • Popular

  • Latest

  • Comments

  • 6 Best Cruiser Motorcycles in Malaysia You Can Get Your Hands On
    Buyer's guideJune 19, 2025
  • Volonaut Airbike: The Future of Motorcycles Is in the Sky
    NewsJune 5, 2025
  • Yamaha Y15ZR V2 Review: Still the People’s Moped After All These Years
    Buyer's guideJune 13, 2025
  • YADEA GT20 Debuts in Malaysia: Price Starts at RM4,998
    Buyer's guideJune 18, 2025
  • QJMotor SRK 250 RD to Rival Kawasaki Ninja ZX-25R in Malaysia? 
    Buyer's guideJune 5, 2025
  • Modenas Kawasaki Versys 650: The Touring Bike That Gets Everything Right
    Buyer's guideJune 9, 2025
  • Indian Motorcycle Officially Launched in Malaysia
    Buyer's guideJune 23, 2025
  • Ducati Adds Touring Accessories for Multistrada V2 & XDiavel V4
    NewsJune 26, 2025
  • Aleix Espargaró Balances Dual Careers in Motorsport and Pro Cycling
    LifestyleJune 26, 2025
  • Kawasaki Corleo: The Four-Legged Ride of the Future
    NewsJune 25, 2025
  • Akira-Inspired Electric Bike Unveiled by Ichiban Motorcycle
    NewsJune 25, 2025
  • Keanu Reeves & Gard Hollinger’s Creative Journey with Visionaries
    NewsJune 25, 2025
  • Assen 2025: Showdown at the Cathedral of Speed
    NewsJune 25, 2025
  • Bing Ang’s Journey Is Fueled by More Than Just Gasoline
    LifestyleJune 25, 2025
  • MV Agusta Lucky Explorer Project 9.5: testing the Schiranna prototype - news.iNthacity: More Top Breaking News and Popular Stories To Stay Informed says:

    […] Michelle Liew […]

  • CFMOTO 450SR to enter Malaysia in March 2023 at RM29,300 - news.iNthacity: More Top Breaking News and Popular Stories To Stay Informed says:

    […] Michelle Liew […]

  • Suzuki V-Strom now available in Malaysia at RM81,900 - news.iNthacity: More Top Breaking News and Popular Stories To Stay Informed says:

    […] Michelle Liew […]

  • Colin says:

    I hope they make the Dax street legal. Love to…

  • Mohd Razi bin Rosli says:

    Adv 150cc

  • Nena Maxberry says:

    Just curious what they would retail for

  • Adam Kenny says:

    RM4159 for the front fork is it?

Categories

  • Buyer's guide
    • First Rides & Reviews
    • Specs, Prices & Others
  • cafe racer malaysia murah
  • CSR Programme
  • Electric Motorcycles
  • Electric Motorcycles
  • Industry
  • Industry
  • Kedai Motor
  • Lifestyle
    • Concepts & Custom
    • Electric Motorcycles
    • Events
      • EICMa
    • Helmet
    • Motorsport
      • ARRC
      • CubPrix
      • Moto3
      • Motocross
      • MSBK
      • WSBK
    • Tips & Stories
    • Travel
  • Moto2
  • Motor Murah
  • News
    • Locals
    • MotoGP
    • Scoop
  • Review
  • Scoop
  • Scoop
  • Tips & Tricks

Corporate

About Us
Terms of Use
Privacy Policy
Disclosure Policy
Contact Us
SUBSCRIBE NOW!

2024 iMotorbike World Sdn. Bhd.(1205246-M). All rights reserved.

Kawasaki to Unveil Bimota KB998 Rimini in London
KTM Reveals Near-Identical Liveries for 2025 MotoGP Campaign
Nak Jual Beli Motor 😊 ?
WhatsApp
Hi iMotorbike 😊
Open chat