<img src="https://static-content-live.caricarz.com/media_library/post/20365/16341827/conversions/social_CariCarz_Tesla-Model-Y-Malaysia-Launch_-9-(1)-full_normal-full_normal.jpg" style="width: 100%;" data-media-id="16341827" alt="social_CariCarz_Tesla-Model-Y-Malaysia-Launch_-9-(1)-full_normal.jpg"> Malaysia’s automotive sector continues to be a major contributor to government coffers, with RM36.3 billion collected from <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2023/02/government-has-no-plans-to-review-automotive-sectors-tax-structure-tengku-zafrul" target="_blank">vehicle-related taxes and fees</a> between 2022 and 2024, according to figures released by the Ministry of Finance (MOF).According to <a rel="nofollow noopener noreferrer" href="https://theedgemalaysia.com/node/779501" target="_blank">The Edge</a>, in a written parliamentary response, the MOF revealed that RM26.47 billion of this total came from import and excise duties imposed on motor vehicles and spare parts. Of that, RM25.15 billion was derived from duties on vehicles, while RM1.32 billion came from spare parts. <img src="https://static-content-live.caricarz.com/media_library/post/20365/16341830/conversions/thumb-(17)-full_normal.jpg" style="width: 100%;" data-media-id="16341830" alt="thumb-(17).jpg"> The ministry explained that these indirect taxes are collected by the Royal Malaysian Customs Department under the Customs Act 1967 and Excise Act 1976, before being channelled into the Consolidated Fund. The revenue supports various government development programmes, public projects, and operating expenditures.Separately, data from the <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2024/08/myjpj-transactions-surpass-rm28mil-in-just-one-month-dg" target="_blank">Road Transport Department (RTD)</a> showed that motor vehicle licence fees contributed an additional RM9.83 billion over the same period, reflecting consistent ownership and road usage nationwide. <img src="https://static-content-live.caricarz.com/media_library/post/20365/16341832/conversions/Porsche_911_GT3_Ice_Grey-27-full_normal.jpg" style="width: 100%;" data-media-id="16341832" alt="Porsche_911_GT3_Ice_Grey-27.jpg"> The figures were disclosed in response to a parliamentary question from Salamiah Mohd Nor (PN–Temerloh), who had asked for the total collection of road tax, import duties, and excise duties on vehicles between 2022 and 2024.While the numbers reaffirm how integral the automotive sector is to Malaysia’s fiscal structure, analysts note that collections could climb even higher once existing tax incentives are phased out. <img src="https://static-content-live.caricarz.com/media_library/post/20365/16341839/conversions/Caricarz-MBA-smart-5-Brabus-Preview-4-full-full_normal.jpg" style="width: 100%;" data-media-id="16341839" alt="Caricarz-MBA-smart-5-Brabus-Preview-4-full.jpg"> This includes the ongoing <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/10/2026-ev-price-shock-what-happens-when-the-tax-break-ends" target="_blank">tax breaks for CBU electric vehicles (EVs)</a>, covering import and excise duties, which are set to expire soon with <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/11/ckd-excise-duty-revision-govt-studying-measures-to-ease-impact" target="_blank">a review reportedly underway</a> as part of Malaysia’s next phase of EV policy incentives.If exemptions lapse without replacement measures, industry observers say vehicle-related tax collections could surge, albeit at the risk of dampening demand and slowing EV adoption. For now, the government maintains it will introduce mitigation steps to balance fiscal needs with affordability and industry growth.

Import and excise duties alone contributed more than RM26 billion, underscoring the auto sector’s economic weight.

MOF: RM36.3B Collected from Vehicle Taxes Over Three Years

<img src="https://static-content-live.caricarz.com/media_library/post/20359/16338570/Untitled-design---2025-09-11T112302.807-(1).png" style="width: 100%;" data-media-id="16338570" alt="Untitled-design---2025-09-11T112302.807-(1).png">


The Regent of Johor, Tunku Mahkota Ismail Sultan Ibrahim, has warned that <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/06/first-rts-link-train-set-delivered-ahead-of-2026-launch" target="_blank" style="">traffic congestion could worsen once the Johor Bahru–Singapore Rapid Transit System (RTS) Link starts operations.</a>
He said <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/11/rts-link-65-complete-first-train-arriving-this-month" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">no clear plan has been laid out to manage the expected surge in traffic, especially around Bukit Chagar,</a> where the RTS station and the Customs, Immigration, and Quarantine (CIQ) complex are located.

<img src="https://static-content-live.caricarz.com/media_library/post/20359/16338573/MYSG-RTS-Link-TrainSet-Delivery-1-full_normal.jpg" style="width: 50%;" data-media-id="16338573" alt="MYSG-RTS-Link-TrainSet-Delivery-1-full_normal.jpg"><img src="https://static-content-live.caricarz.com/media_library/post/20359/16338577/MYSG-RTS-Link-TrainSet-Delivery-2-full_normal.jpg" style="width: 50%;" data-media-id="16338577" alt="MYSG-RTS-Link-TrainSet-Delivery-2-full_normal.jpg"> <img src="https://static-content-live.caricarz.com/media_library/post/20359/16338582/579c0a91-07f1-48b9-974d-38768479f5d1-(1).jpeg" style="width: 100%;" data-media-id="16338582" alt="579c0a91-07f1-48b9-974d-38768479f5d1-(1).jpeg"> 

"To date, no comprehensive solution has been presented to accommodate the expected increase in traffic including the implementation of an elevated autonomous rail transit (ART) system or other alternative transport options around Bukit Chagar," Tunku Ismail said.He also questioned the federal <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/08/new-law-in-february-to-ease-rts-link-border-checks-home-minister" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">government’s claim of insufficient funds to maintain a fully elevated system. </a>"Yet, Penang has been able to secure the LRT project, which is significantly more expensive than the ART system," he added.The RTS Link is 65 percent complete and is expected to be fully finished by December 2026, with operations starting in January 2027.

 <img src="https://static-content-live.caricarz.com/media_library/post/20359/16338591/Untitled-design---2025-11-03T175623.099.png" style="width: 100%;" data-media-id="16338591" alt="Untitled-design---2025-11-03T175623.099.png"> 

In response, the Johor state government stressed its commitment to working with the federal authorities to tackle key development and public welfare issues. Menteri Besar Datuk Onn Hafiz Ghazi said the goal is to ensure the RTS Link and other projects benefit residents while minimising disruption. <span style="font-size: 12pt; font-family: Arial, sans-serif; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;"> <span style="font-size: 12pt; font-family: Arial, sans-serif; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-variant-position: normal; font-variant-emoji: normal; vertical-align: baseline; white-space-collapse: preserve;">

Tunku Mahkota Ismail flags potential congestion around Bukit Chagar as the JB–SG RTS Link nears completion.

Johor Regent Flags Traffic Concerns Ahead Of RTS Link Launch

<img src="https://static-content-live.caricarz.com/media_library/post/20357/16337317/Diesel-Smuggler-Johor-(1)-full_normal.jpg" style="width: 100%;" data-media-id="16337317" alt="Diesel-Smuggler-Johor-(1)-full_normal.jpg">


Deputy Finance Minister Lim Hui Ying said<a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/10/mof-budi-madani-diesel-sees-rm5-billion-in-annual-savings" target="_blank" style=""> diesel subsidy rationalisation has successfully curbed smuggling and misuse, cutting sales by over 300 million litres a month since June 2024.</a>
“Commercial diesel sales have also increased after the policy took effect, which means that previously, subsidised diesel from petrol stations might have been used for commercial purposes such as machinery and electricity generators at construction sites or factories,” she told Parliament.

<img src="https://static-content-live.caricarz.com/media_library/post/20357/16337318/thumb-Diesel-BudiMadani-full_normal.jpg" style="width: 100%;" data-media-id="16337318" alt="thumb-Diesel-BudiMadani-full_normal.jpg"> <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/08/workshop-busted-for-diesel-smuggling-36000l-seized-worth-rm293000" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">Diesel sales between June and December 2024 averaged 465 million litres per month</a>, down from about 770 million litres from January to May.Lim further mentioned that the BUDI MADANI Diesel programme has generated monthly savings of more than RM400 million, totaling around RM5 billion a year. <img src="https://static-content-live.caricarz.com/media_library/post/20357/16337319/Caricarz-Social-Mazda-CX-5-Diesel-Facelift-Review-10-full_normal.jpg" style="width: 100%;" data-media-id="16337319" alt="Caricarz-Social-Mazda-CX-5-Diesel-Facelift-Review-10-full_normal.jpg"> 

“These savings allow the government to fund development projects and boost social support through programmes like Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah,” she added.The initiative also provides RM200 monthly cash aid to eligible diesel vehicle owners, farmers, and smallholders, benefiting 320,000 individuals. Meanwhile, 121,618 transport companies with 355,074 vehicles have received fleet cards under the programme. <span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">

Diesel subsidy rationalisation cuts sales by over 300 million litres a month, helping curb smuggling.

Diesel Subsidy Reform Cuts Over 300 Million Litres In Sales

<img src="https://static-content-live.caricarz.com/media_library/post/20351/16334908/Text---Fuel-Update---13---19-November.jpg" style="width: 100%;" data-media-id="16334908" alt="Text---Fuel-Update---13---19-November.jpg"><span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> <span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">The Ministry of Finance (MoF) has announced the retail prices of all fuels in Malaysia, for the coming week of 13 to 19 November, 2025, the rates are as such.<span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Subsidised regular RON95 (Malaysian) is fixed at RM1.99 per litre. This is in accordance with the BUDI MADANI RON95 (BUDI95) subsidy programme.<span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">For the unsubsidised RON95 (Non-Malaysian), the price increases by 5 cents to RM2.65 per litre, following the Automatic Pricing Mechanism (APM) formula.<img src="https://static-content-live.caricarz.com/media_library/post/20351/16334909/Text-2---Fuel-Update---BUDI95.jpeg" style="width: 100%;" data-media-id="16334909" alt="Text-2---Fuel-Update---BUDI95.jpeg"><span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Premium RON97 also sees a hike of 5 cents. The price is now set at RM3.25 per litre.<span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Diesel increases by 5 cents, setting its retail prices in Peninsular Malaysia at RM3.07 per litre (Euro 5 B10/B20) and RM3.27 per litre (Euro 5 B7).<span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Rates for diesel in East Malaysia remains at RM2.15 per litre (Euro 5 B10/B20) and RM2.35 per litre (Euro 5 B7).<span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">That said, these prices take effect from midnight tonight, until the next price announcement from the Ministry next Wednesday, 19 November, 2025.<img src="https://static-content-live.caricarz.com/media_library/post/20351/16334910/Text-1---Fuel-Update---Petrol-Pump.jpg" style="width: 100%;" data-media-id="16334910" alt="Text-1---Fuel-Update---Petrol-Pump.jpg">

The Ministry of Finance (MoF) has announced the retail prices of all fuels in Malaysia, for the coming week of 13 to 19 November, 2025, the rates are as such.

Updated Fuel Prices From 13 To 19 November

<img src="https://static-content-live.caricarz.com/media_library/post/20348/16333422/580959096_18084025286079211_6843066994439222324_n.jpg" style="width: 100%;" data-media-id="16333422" alt="580959096_18084025286079211_6843066994439222324_n.jpg">


Construction has begun on the<a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/08/npe-extension-deal-inked-rm14b-project-starts-q4-2025" target="_blank" style=""> RM1.7 billion New Pantai Expressway Extension (NPE2),</a> aimed at cutting congestion along the Pantai Dalam-Bangsar-Mahameru corridor. 
The 6.4-kilometre main route, or 15 km including ramps, <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/05/ijm-gets-green-light-for-rm14-billion-npe-highway-extension" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">will connect Pantai Dalam Toll Plaza to Jalan Istana via Jalan Syed Putra, with completion expected by 2029.</a>Works Minister Datuk Seri Alexander Nanta Linggi said the extension could save motorists up to 25 minutes travelling from Bangsar or Mid Valley to Subang Jaya. 

<img src="https://static-content-live.caricarz.com/media_library/post/20348/16333423/582991484_18084025295079211_8719693944747521492_n.jpg" data-media-id="16333423" alt="582991484_18084025295079211_8719693944747521492_n.jpg" style="width: 50%;"><img src="https://static-content-live.caricarz.com/media_library/post/20348/16333424/581020959_18084025283079211_5909536788197261822_n.jpg" style="width: 50%;" data-media-id="16333424" alt="581020959_18084025283079211_5909536788197261822_n.jpg"><img src="https://static-content-live.caricarz.com/media_library/post/20348/16333425/581223900_18084025232079211_4541680764892850189_n.jpg" data-media-id="16333425" alt="581223900_18084025232079211_4541680764892850189_n.jpg" style="width: 100%;"> 

"It will also improve traffic flow, divert cars from busy city roads, and boost local economic growth in Pantai Dalam, Bangsar, and Lembah Pantai by supporting housing, commercial, and business development," he said in a Bernama report.Fully funded by New Pantai Expressway Sdn Bhd, <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2024/09/partial-closure-of-npe-besraya-from-saturday-midnight-for-ijm-marathon" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">a subsidiary of IJM Corporation Bhd, the project requires no government allocation. </a>“This is a prime example of a successful public-private partnership in sustainable infrastructure development,” Nanta said.The extension will feature modern infrastructure, including smart lighting, CCTV, EV fast chargers, and free-flow ramps. A new Multi-Lane Free Flow (MLFF) tolling system will provide gateless, AI-driven toll collection.

<img src="https://static-content-live.caricarz.com/media_library/post/20348/16333426/3489497.jpg" style="width: 100%;" data-media-id="16333426" alt="3489497.jpg"> 

With only 5% of land acquisition needed, disruption to residents and businesses is minimal, the minister assured.The NPE2 will also improve connectivity between NPE, Besraya, and the upcoming Laluan Istana-Kiara Expressway, offering commuters faster, safer, and more efficient travel while supporting regional development and modern infrastructure goals.

The NPE2 will connect Pantai Dalam to Jalan Istana, cutting travel time by up to 25 minutes and improving traffic flow across KL.

RM1.7b NPE2 Extension To Ease KL Congestion By 2029 - Nanta

<img src="https://static-content-live.caricarz.com/media_library/post/20343/16331379/conversions/BYD-Shark-Teaser-MY-full_normal.jpg" style="width: 100%;" data-media-id="16331379" alt="BYD-Shark-Teaser-MY.jpg"> <h6 style="text-align: center; ">BYD Cars Malaysia has dropped a teaser for the BYD Shark PHEV pick-up truck. Coming to Malaysia soon?</h6>Just a few months after its <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/08/byd-shark-6-sale-in-thailand-cancelled-due-to-low-demands" target="_blank">sales cancellation in Thailand</a>, it seems like the <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2024/05/byd-shark-phev-pick-up-truck-unveiled-in-mexico-with-100-km-ev-range" target="_blank">BYD Shark</a> might be heading to Malaysia, as the pick-up truck appeared in a teaser post published by <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/10/byd-seal-6-ivory-gold-limited-run-exclusive-only-100-units-for-malaysia" target="_blank">BYD Cars Malaysia</a>.Published on its <a rel="nofollow noopener noreferrer" href="https://www.facebook.com/share/p/1D1mGLLBUN/" target="_blank">official Facebook page</a>, the post is made in conjunction with the automaker’s upcoming event, the BYD Tech Discovery 2025. From the posting, it showcases a shadow image of a pick-up truck that will be shown at the Adventure Zone of said event.<img src="https://static-content-live.caricarz.com/media_library/post/20343/16331385/conversions/BYD-Shark6-RHD-4-full_normal.jpg" data-media-id="16331385" alt="BYD-Shark6-RHD-4.jpg" style="width: 50%;"><img src="https://static-content-live.caricarz.com/media_library/post/20343/16331386/conversions/BYD-Shark6-RHD-5-full_normal.jpg" style="width: 50%;" data-media-id="16331386" alt="BYD-Shark6-RHD-5.jpg"> From the shadowy silhouette of the teaser, we can clearly tell that the mysterious model in question is the <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2024/11/byd-shark-6-phev-previewed-in-thailand-malaysia-next" target="_blank">BYD Shark</a>, as that is the only pick-up truck available in the automaker’s arsenal. As of now, the Shark is only available with a plug-in hybrid (PHEV) powertrain option, featuring the brand’s proprietary DMO (Dual Mode Off-road) super hybrid powertrain setup.<img src="https://static-content-live.caricarz.com/media_library/post/20343/16331387/conversions/BYD-Shark6-RHD-3-full_normal.jpg" data-media-id="16331387" alt="BYD-Shark6-RHD-3.jpg" style="width: 50%;"><img src="https://static-content-live.caricarz.com/media_library/post/20343/16331388/conversions/BYD-Shark6-RHD-2-full_normal.jpg" style="width: 50%;" data-media-id="16331388" alt="BYD-Shark6-RHD-2.jpg"> This setup uses a 1.5-litre 4-cyl turbocharged petrol engine rated at 184 PS and 260 Nm as its core, which is then mated to two electric motors to deliver a combined output of 436 PS and 650 Nm. This is good enough to propel this midsize truck from 0 to 100 km/h in just 5.7 seconds and to a top speed of 160 km/h.Juice is provided by a sizable 29.58 kWh BYD ‘Blade’ LFP battery pack that supplies the Shark up to 100 km of pure electric range, as well as a comprehensive range of 840 km. Charging-wise, the LFP pack can accept both AC 7 kW and DC 55 kW charging methods, with the latter enabling a 30-80% charge to be completed in 25 minutes.Not to forget, the Shark PHEV also supports vehicle-to-load (V2L) function that can deliver up to 6 kW to power small electrical appliances.<img src="https://static-content-live.caricarz.com/media_library/post/20343/16331389/conversions/BYD-Shark6-RHD-7-full_normal.jpg" style="width: 100%;" data-media-id="16331389" alt="BYD-Shark6-RHD-7.jpg"> Dimension-wise, the Shark PHEV spans 5,457 mm long, 1,917 mm wide, 1,925 mm tall, and has a wheelbase of 3,260 mm. This puts it on par with other midsize pick-up trucks on sale here, such as the <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/11/all-new-ninth-gen-toyota-hilux-bows-with-ice-bev-fcev-power" target="_blank">Toyota Hilux</a>, <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/07/isuzu-d-max-sees-3081-units-shifted-in-h1-2025" target="_blank">Isuzu D-Max</a>, <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/08/launched-ford-ranger-wildtrak-30l-v6-turbo-diesel-rm192888" target="_blank">Ford Ranger</a>, <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/11/launched-2025-mazda-bt-50-1-cbu-variant-rm138000" target="_blank">Mazda BT-50</a>, and even the <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/03/launched-jac-t9-diesel-ev-pick-up-truck-rm119k-rm199k" target="_blank">JAC T9 EV</a>.<img src="https://static-content-live.caricarz.com/media_library/post/20343/16331396/conversions/BYD-Shark6-RHD-1-full_normal.jpg" style="width: 100%;" data-media-id="16331396" alt="BYD-Shark6-RHD-1.jpg"> With the Shark sales now cancelled in Thailand, it remains to be seen whether this PHEV pick-up truck will ever go on sale here in Malaysia. That being said, the Shark will definitely be a standout model in the local pick-up truck scene, where it could potentially be the first and only PHEV pick-up truck to be sold here in Malaysia.

BYD Cars Malaysia has dropped a teaser for the BYD Shark PHEV pick-up truck. Coming to Malaysia soon?

BYD Shark PHEV Pick-Up Truck Teased by BYD Cars Malaysia – Coming Soon?

<img src="https://static-content-live.caricarz.com/media_library/post/20342/16331154/Cars-SoyaCincau-948x632.jpg" style="width: 100%;" data-media-id="16331154" alt="Cars-SoyaCincau-948x632.jpg"> 

Car buyers are set to save more with<a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/10/hire-purchase-amendment-bill-2025-passed-by-parliament" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;"> the Hire-Purchase (Amendment) Bill 2025, which removes the long-criticized Rule of 78 and flat-rate interest for fixed-rate loans.&nbsp;</a>Approved by the Dewan Rakyat on Oct 8, the law introduces <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2024/10/no-need-to-rush-lemon-law-experts" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">a reducing balance system and effective interest rate (EIR), making loan costs more transparent.</a>Under the old system, most interest was front-loaded, leaving early settlements almost pointless. Now, borrowers pay interest only on what’s left of the loan, meaning early repayment and shorter terms offer real savings.


<img src="https://static-content-live.caricarz.com/media_library/post/20342/16331155/Car-loan-types-Fixed-R78-yearly-1-630x225-full_normal.jpg" style="width: 100%;" data-media-id="16331155" alt="Car-loan-types-Fixed-R78-yearly-1-630x225-full_normal.jpg"> <span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">“This is a more equitable and transparent model that better reflects borrowing costs,” said BIMB Securities in a NST report, which noted lenders must now disclose the true interest rate.
Economist Assoc Prof Dr Ida Yasin said the change brings Malaysia in line with global standards.&nbsp;“With the reducing balance system, interest is only calculated on what you still owe, which is a more accurate reflection of your debt,” she said in a The Star report.

<img src="https://static-content-live.caricarz.com/media_library/post/20342/16331158/Bank-Negara-Malaysia_Aug-16-2024.jpg" style="width: 100%;" data-media-id="16331158" alt="Bank-Negara-Malaysia_Aug-16-2024.jpg"> 

Economist Prof Emeritus Dr Barjoyai Bardai echoed the statement saying that the reform could also encourage<a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2024/09/malaysia-auto-sales-to-m40-could-drag-by-e-invoicing-fuel-subsidy-rationalisation-kenanga" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;"> shorter loans and make car ownership feel more affordable.&nbsp;</a>“Borrowers will have more incentive to take shorter loan terms and repay early. For used-car buyers, whose loans are typically shorter, this makes a meaningful difference,” he told the daily news portal.The bill caps fixed-rate loans at 17% per year for five years or less, and 16% for longer terms, with variable rates staying at 17%.&nbsp;

<img src="https://static-content-live.caricarz.com/media_library/post/20342/16331159/DSC_4355.jpg" style="width: 100%;" data-media-id="16331159" alt="DSC_4355.jpg"> 

Banks and finance companies have an 18-month transition period to adjust systems, though some lawmakers are pushing to shorten it.

Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali stressed the changes are part of a broader push for transparency and consumer protection.&nbsp; <img src="https://static-content-live.caricarz.com/media_library/post/20342/16331209/conversions/303223-full_normal.jpg" style="width: 100%;" data-media-id="16331209" alt="303223.jpeg"> 

“The main goal is to create a fairer and more transparent consumer credit environment,” he noted, marking a major step forward for Malaysian borrowers.

Malaysia ends the Rule of 78, letting car loan borrowers save more with fairer interest.

Malaysia Scraps Rule of 78, Car Loan Savings Ahead - Analysts

<img src="https://static-content-live.caricarz.com/media_library/post/20337/16329428/571358092_1246659444156295_2973851986010127125_n-(1).jpg" style="width: 100%;" data-media-id="16329428" alt="571358092_1246659444156295_2973851986010127125_n-(1).jpg"><span style="font-size:12pt;font-family:Arial,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">



Transport Minister Anthony Loke has dismissed claims that the government is forcing express bus operators to use only the Terminal Bersepadu Selatan (TBS) or Terminal Bersepadu Gombak (TBG). “It’s not true that we’re forcing anyone. We’re not restricting Aeroline or any other operator to TBS or TBG but they must operate from a safe, licensed terminal,” Loke said in a Bernama report.His clarification came after the <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/11/apad-orders-aeroline-to-halt-services-over-repeated-non-compliance" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">Land Public Transport Agency (APAD) suspended Aeroline’s licence for a month for using unauthorised pick-up and drop-off points, including Corus Hotel KLCC. </a> <img src="https://static-content-live.caricarz.com/media_library/post/20337/16329429/Aeroline-IG-pic-e1761983224577-(2).jpg" style="width: 100%;" data-media-id="16329429" alt="Aeroline-IG-pic-e1761983224577-(2).jpg"> 

Loke said while convenience matters, public safety cannot be compromised.“Corus Hotel is right in the middle of Kuala Lumpur, by the roadside. As far as roadside pick-ups are concerned, that’s a no-no,” he stressed.To offer passengers safer yet convenient options, Loke said <a rel="nofollow noopener noreferrer" href="https://www.carz.com.my/2025/11/aeroline-suspension-shows-outdated-transport-rules-experts" target="_blank" style="font-family: Arial, sans-serif; font-size: 12pt; white-space-collapse: preserve;">the ministry is working with shopping mall operators such as 1 Utama, Lalaport Bukit Bintang and IOI City Mall Putrajaya to help them obtain terminal licences.</a>“The malls themselves must apply for the licence, but we’re reaching out to help them get it done. I’ve also told APAD to simplify the licensing process so it’s easier to set up proper terminals,” Loke added.


<img src="https://static-content-live.caricarz.com/media_library/post/20337/16329430/574412163_10162389175903597_3725694132802867904_n-(2).jpg" style="width: 100%;" data-media-id="16329430" alt="574412163_10162389175903597_3725694132802867904_n-(2).jpg"> 

The minister emphasised the government’s goal is to strike a balance between safety and convenience for passengers.“Everyone says it’s not convenient now, but the moment an accident happens, the blame will fall on us. We want convenience, yes, but safety comes first,” he concluded.

Express bus operators aren’t forced to use TBS or TBG but must run from safe, licensed terminals.

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