Motorcycle Prices To Go Up By 20% In Malaysia If Excise Tax Is Implemented
The tax regulations on motorcycles could impact Malaysians in the B40 and M40 income brackets, especially those in the gig economy.
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The livelihoods of Malaysians may be at stake as the price of motorcycles are expected to rise by 20% in the near future, if an excise duty revision is implemented. Excise duty is basically a legislated tax imposed on specific good imported into or manufactured in Malaysia for domestic use.
Speaking to automotive news portal paultan.org, president of Motorcycle and Scooter Assemblers and Distributors Association of Malaysia (MASAAM) Hoo Wan Ting said CKD (Completely Knocked Down – vehicles that are shipped in parts and assembled at a dealership or factory) bikes would go up by 20 percent, impacting Malaysians in the B40 and M40 brackets.
“In alignment with Malaysian Automotive Association (MAA) and Malaysia Automotive Component Parts Manufacturers (MACPMA), MASAAM would also like for the government to relook into the Excise Regulations 2019 situation to avoid significant cost impact to the livelihoods of consumers. Especially so that when it comes to motorcycles, our consumers are mostly in the B40 and M40 groups that will be even more severely impacted,” Hoo said.
“For bikes, the price increases for locally-assembled models between 10 to 20 percent. For example, if a bike is currently priced at RM10,000, with the excise duty revision, the same model will be sold at RM11,000 or RM12,000 next year. For those in need of basic transportation, including those in the gig economy (e.g. delivery riders), that will be a massive increase,” he added.
A little backstory on the excise duty regulations in Malaysia
Back in 2019, new excise duty regulations were introduced in Malaysia which could potentially hike CKD car prices up by 15 percent.
However, the implementation was deferred by the government over several years including last year, that is until the deferrment expired on 31 December, 2024.
Does that mean that vehicle prices have already gone up by now?
Not at the moment, as MAA president Mohd Shamsor Mohd Zain recently confirmed that the excise duty regulation has been deferred by another year, to January 2026.
So, unless the government keeps deferring or maybe even decide to not implement this controversial regulation, we may be looking at significantly higher motorcycle and car prices early next year.
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