KUALA LUMPUR, Oct 12 (BusinessToday): The Transport Ministry (MOT) has welcomed the Budget 2026 as a reflection of the government’s continued commitment to developing a safe, sustainable and people-oriented transport system, in line with the Madani Economy agenda and the upcoming 13th Malaysia Plan (2026-2030).
In a statement, the ministry said the RM470 billion budget, including RM81 billion for development, underscores the government’s determination to enhance infrastructure, boost logistics efficiency and expand access to modern mobility nationwide.
“The budget embodies the government’s resolve to strengthen Malaysia’s transportation network — for the people, the economy and the nation,” the ministry said.
Among key highlights in the Budget 2026 announcement by Prime Minister Datuk Seri Anwar Ibrahim on Oct 10, the land transport sector will see excise and sales tax exemptions of up to RM10,000 for new national taxis, benefitting over 21,000 taxi drivers, while new bus routes and fleets in Johor will complement the Johor Bahru-Singapore Rapid Transit System (RTS) launching in 2027.
The government will also fund B2 motorcycle licence fees for youth delivery riders, introduce RM4,000 scrappage grants for vehicles over 20 years old and expand OKU-friendly mobility vans across Klang Valley and Penang.
On rail transport, the ministry highlighted progress on major projects — including the East Coast Rail Link (ECRL) Phase 1, now 88% complete and set to begin phased operations in December 2026; the LRT3 Shah Alam Line, scheduled for service by end-2025; and the RTS Link, which will connect 10,000 passengers per hour between Johor and Singapore when operational in January 2027.
Other initiatives include upgrading the Pasir Mas-Rantau Panjang railway line to boost cross-border trade with Thailand, conserving Kuala Lumpur Railway Station as a heritage landmark and introducing new LRT trains worth RM1 billion on the Kelana Jaya Line.
In the aviation sector, the government is set to advance the Subang Airport Regeneration Plan, upgrade multiple regional airports and strengthen Malaysia Airports Holdings Bhd’s management capacity. Meanwhile, the Selangor Aero Park in Sepang is expected to create 30,000 high-skilled jobs through high-impact logistics and aerospace investments.
For the maritime and logistics sectors, initiatives include the creation of a Teaching Shipyard TVET Marine Complex at Universiti Malaysia Terengganu, upgrades to jetties in Pulau Banggi, Sabah, and installation of new cargo scanners at the Perlis Inland Port to strengthen border logistics.
“With Budget 2026, the ministry will continue to build an inclusive, green and resilient transport system ensuring every Malaysian enjoys better mobility and connectivity,” the statement said.
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