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    MG S5 EV CKD launched in Malaysia from RM116,900

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Budget 2026: Imported EVs to cost more in 2026 — the motoring takeaways

tiencars by tiencars
10/10/2025
in Malaysia
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Budget 2026: Imported EVs to cost more in 2026 — the motoring takeaways
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Imported EVs about to get pricier

If you’ve been eyeing an imported electric vehicle, you’ve got until the end of the year to pull the trigger.

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MG S5 EV CKD launched in Malaysia from RM116,900

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Come Jan 1, 2026, the government won’t be extending those sweet import and excise duty exemptions for fully imported (CBU) EVs. That tax holiday? Over.

The good news is that locally assembled EVs still get their incentives through 2027, which means Proton, Perodua, and other CKD manufacturers will have a serious price advantage going forward.

Lemon Law is finally happening

Here’s something Malaysian consumers have been asking for: actual legal recourse when you buy a lemon. The government’s planning to amend the Consumer Protection Act to include proper Lemon Law provisions.

Translation? If you end up with a defective car—or frankly, any dodgy product — you’ll have clearer rights and remedies.

Goodbye, Langkawi luxury car loophole

You know that frustrating trick where wealthy folks register their Ferraris in Langkawi or Labuan to dodge duties?

That’s getting shut down. Starting Jan 1, the duty-free vehicle exemption in both places will cap at RM300,000. No more supercar tax dodging.

Roads are getting some serious attention

The federal government’s throwing RM2.5 billion at road maintenance — we’re talking proper resurfacing, better lighting at dangerous spots, and replacing all that battered road furniture.

About RM700 million is going to smaller G1-G4 contractors, which should help spread the work around.

States aren’t being left out either. They’re getting RM5.6 billion through MARRIS for their own road networks.

And the Highway Authority? They’re installing 3,000 LED lights at accident-prone highway locations. Maybe those pitch-black stretches will finally get some illumination.

Cash for clunkers — with a catch

Got a car that’s hit the 20-year mark? The government’s offering up to RM4,000 in matching grants if you scrap it. But here’s the thing: you’ve got to replace it with a new Proton or Perodua. No Honda, no Toyota —strictly national cars only.

It’s obviously designed to boost local manufacturers, but if you were already considering a new Myvi or X90, it’s not a bad deal. Plus, you’re helping get genuinely unsafe old bangers off the road.

Speed limit crackdown for heavy vehicles

Heavy vehicle operators, heads up: enforcement on speed limits is tightening.

To soften the blow, companies that install approved speed limiters can claim Accelerated Capital Allowance within a year. It’s the government’s version of a stick with a small carrot attached.

They’re also putting RM30 million towards beefing up district engineers’ capacity for quick repairs, including all those potholes people report through the MYJalan app.

Deepavali perks

In the spirit of the season, there’s a 50% toll discount for two days during Deepavali, which falls on Oct 20.  Not groundbreaking, but every bit helps when you’re planning festive trips.

Tags: Budget 2026Lemon LawPricier EVs
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tiencars

tiencars

Veteran writer, street food lover and all-around car enthusiast. The creator of all that you see on this patch of the Internet. Call me Ed.

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