Budget 2025: What Benefits Await Motorcycle Riders?

Budget 2025 introduces RM2,400 electric motorcycle subsidy, targeted fuel relief, free helmets for underprivileged families, and improved road safety for Malaysian riders.

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Last Friday, on October 18, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim presented the Belanjawan 2025 (Budget 2025), outlining various measures that will directly benefit motorcyclists across Malaysia. Here’s a summary of the key points motorcyclists should be excited about.

RM2,400 Subsidy for Electric Motorcycles

A significant highlight for riders is the CKD Motorcycle Use Promotion Scheme, which introduces an RM2,400 subsidy aimed at making locally developed electric motorcycles more affordable for Malaysians. An additional RM10 million has been allocated to this initiative, designed to increase the number of electric motorcycles on the road.

This initiative complements the government’s support for Perodua’s development of an electric car, which is expected to be priced under RM100,000. Further benefits include tax incentives for home EV charger installations and waived fees for motorcycle, car, and e-hailing licenses to encourage electric vehicle adoption.

Restructured RON95 Subsidy

Starting mid-2025, the RON95 petrol subsidy will be restructured into a targeted subsidy, which is projected to save the government RM8 billion. Currently, the government spends RM20 billion annually to cap RON95 prices at RM2.05 per litre.

Prime Minister Anwar Ibrahim noted that 40% of the current subsidy benefits foreigners and the wealthiest 15% of Malaysians. The savings from this restructuring will be redirected to enhance education, healthcare, and public transportation.

Despite these changes, the government has assured that 85% of RON95 users—mostly lower-income groups—will continue to receive subsidies amounting to RM12 billion.

Motorcycle License Support for Youths

To assist underprivileged youths, a portion of revenue from the sale of special license plate numbers will be used to cover the cost of obtaining motorcycle licenses for 15,000 individuals, including secondary school students, university students, and young job seekers. 

Additionally, the government will distribute free helmets to 67,000 underprivileged families to enhance safety, particularly for children.

Road Maintenance and Safety Improvements

The government is also prioritizing road safety and maintenance in Budget 2025. RM2.8 billion has been allocated for the refurbishment and maintenance of federal roads, with another RM1 billion set aside for secondary roads, including those in FELDA areas and flood-damaged regions.

Further, RM178 million will be dedicated to installing street lamps and smart traffic lights on federal roads, while RM30 million will be allocated to expedite the repair of potholes. These improvements are expected to significantly reduce accidents caused by dangerous road conditions.

To enhance road safety further, a high-speed weighing-in-motion system will be installed at key locations to detect overweight lorries, helping prevent accidents involving heavy vehicles.

Border Management Upgrades

In terms of national border management, the newly established Malaysian Border Control and Protection Agency (MCBA) will streamline border entry and exit processes. 

A QR code system has been implemented to inspect bus passengers and motorcycle users at key southern entry points, reducing inspection times by up to 40%. RM20 million has been allocated to strengthen national entry points further.

Conclusion

With Budget 2025, motorcyclists can expect various forms of financial support, including subsidies for electric bikes, license assistance for underprivileged youths, and improvements in road safety. 

The government’s focus on promoting greener transportation options and better infrastructure promises a brighter future for riders in Malaysia.