Motorcycle Prices in Malaysia to Soar 20%: Impact on B40 Households

Motorcycle prices in Malaysia are expected to increase by up to 20% following the government’s revision of the Open Market Value (OMV) formula. This change, announced earlier this year, has raised concerns among Malaysians, particularly the B40 income group, who rely on motorcycles as an affordable means of transportation.

The Malaysian Association of Motorcycle and Scooter Assemblers (MASAAM) has highlighted that the new OMV calculation will impact both entry-level and mid-range motorcycle prices, pushing them further out of reach for low-income households. With rising living costs, increased fuel prices, and higher insurance premiums, this development could intensify financial pressures on many Malaysians.

Understanding the OMV Revision

The Open Market Value (OMV) is a key factor in determining excise duties for vehicles. The government’s revised formula adjusts how manufacturers declare costs, including production, assembly, and logistics. This leads to higher excise duties and, ultimately, higher retail prices for motorcycles.

While the government aims to improve transparency and increase revenue through these changes, the ripple effects are hitting consumers hard. Motorcycles, typically seen as an affordable option for commuting, are now moving beyond the reach of many first-time buyers and low-income families.

B40 Group: The Hardest Hit

The B40 group, representing the bottom 40% of income earners, relies heavily on motorcycles for commuting to work, school, and managing daily errands. A 20% price hike could mean:

Fewer Affordable Options: Entry-level motorcycles, once priced under RM5,000, may become unaffordable.

Delayed Purchases: Many may delay upgrading or replacing older motorcycles, increasing safety risks.

Higher Insurance Costs: As vehicle value increases, so do insurance premiums, adding another layer of expense.

Market Shifts: Growth in Used and Scrap Motorcycles

The rising costs are likely to shift demand toward used motorcycles and scrap motorcycles. Buyers looking to save money might explore second-hand options, but this also raises concerns about safety, maintenance costs, and limited warranty coverage.

At the same time, those looking to upgrade may opt to sell their old motorcycles or cars. Platforms like the Motorist app make it easier to sell used cars or even scrap vehicles, providing much-needed cash for new purchases.

How Malaysians Can Adapt to Rising Costs

Sell Your Car to Save Costs

If you own a car that’s costly to maintain, consider selling it and switching to a more affordable motorcycle. The Motorist app allows you to sell your car online, get a free valuation, and secure the best deal.

Buy Smartly

Look for promotions or discounts on motorcycles to offset the price hike. Compare prices across dealerships and consider brands that offer better warranties or maintenance packages.

Optimize Insurance Costs

Rising motorcycle prices mean higher insurance kereta premiums. Use the Motorist app to compare and secure the best insurance Malaysia deals.

Track Petrol Prices and Save

With fluctuating Malaysia petrol prices, tracking fuel trends can help you plan trips more efficiently and save on costs.

Sell or Scrap Your Vehicle

For those with older vehicles, selling or scrapping is a viable option. Platforms like Motorist make it easy to find buyers or scrap services, providing you with funds to invest in a new motorcycle.

Why You Need the Motorist App

The Motorist app is your go-to tool for navigating these changes:

• Sell Cars Quickly: Need to sell a car in Malaysia? Get competitive offers and a hassle-free process.
• Insurance Savings: Find affordable insurance to minimize your expenses.
• Real-Time Traffic Updates: Stay informed on traffic camera Malaysia alerts to avoid unnecessary fines.
• Scrap Services: Explore options for scrapping your vehicle and unlocking funds for a new purchase.

The OMV revision is a wake-up call for Malaysians to reevaluate their financial priorities and transportation choices. While the changes are challenging, they also present opportunities to adapt smartly.

If you’re considering selling your car, finding better insurance rates, or simply looking for ways to manage rising costs, the Motorist app is here to help.

Don’t let rising prices stall your plans. Download the Motorist app today and take the driver’s seat in managing your financial future!

Read More: List of Malaysia highway toll rates - PLUS, KLK, LPT, and others

Download the Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage vehicle related matters.