Scrapping Road Tax For Bikes Under 150cc Could Backfire - Expert

A proposal to abolish road tax for motorcycles under 150cc, pitched as a way to ease the burden on the B40 group could bring unintended consequences, warns road safety expert Assoc. Prof. Dr. Law Teik Hua of Universiti Putra Malaysia.

He says while the move might save riders a small sum, it risks encouraging more motorcycles on the road, adding to congestion, emissions, and accident risks. 

“Road tax is not just a fee. It funds road maintenance and upgrades. If we cut it, we reduce the pool of money needed to make our roads safer,” Dr. Law told Sinar Harian.

Instead of abolishing the tax entirely, he suggests targeted reductions for those in genuine financial need. 
“If there’s a solid reason, then fine. But removing it completely sends the wrong message. We should be discouraging unnecessary private vehicle use, not promoting it,” he said.

The proposal comes as the government invests heavily in public transport projects like the RM68 billion MRT3, aimed at reducing traffic and getting more people out of their cars and bikes.

Malaysia’s public transport usage remains low at 25%, far behind cities like Singapore (67%) and Tokyo (73%). By the end of 2024, the country had 38.7 million registered vehicles, more than its population, including 18.1 million cars and 17.5 million motorcycles.
“This isn’t just about saving a few ringgit in tax,” Dr. Law stressed. “It’s about the bigger picture, which is the future of our transport system and whether we want to keep encouraging private vehicle growth.”