IN THE KNOW
Cool trains, new fisheries, electric vehicle insurance and more
There’s an insurance story behind every news item, whether it’s personal insurance for an individual or commercial insurance for a business. We’ve been looking at recent stories from our region, each with an insurance slant. Here’s our take on the ECRL project in Kelantan, two big construction scams, Kedah’s new fishery agreement, and the future of electric vehicles and bikes.
KELANTAN’S MASSIVE ECRL PROJECT 80% COMPLETE
The East Coast Rail Link project in Kelantan is progressing nicely. In mid-July the Transport Ministry announced the work was 79.81% complete, with 428 out of 468 bridge beam launching spans installed on the main line and building work on both Kelantan stations underway. The track installation at Kelantan should kick off in Q4 2024.
The new 665km line will connect the east and west Malaysia, making travelling between Kelantan, Terengganu, Pahang and Selangor easier and faster. The link, which was started in 2017, will carry both passengers and cargo.
As you can imagine a huge and complex building project like this demands equally complicated insurance. Construction and engineering insurance, consequential loss insurance, liability insurance, workers insurance and commercial vehicle insurance are just the tip of the iceberg.
SCAMMERS FOOL EXPERTS AT THE HIGHEST LEVEL
Scams are becoming more sophisticated. Take the recent construction scam that was so convincing it even fooled a former deputy minister.
The Malaysian Anti-Corruption Commission has arrested eight people for bribes over two Klang Valley highway projects. The suspects from the highway concessionaire – including its CEO - are accused of asking for and accepting bribes to secure building contracts worth RM1 billion and RM670 million. No wonder more businesses are buying cyber insurance and companies are busy making sure their Directors & Officers and Crime & Fidelity policies are up to date.
KEDAH’S NEW FISHERY
A business from China is collaborating with the state government of Kedah to build a fishery hub. The agreement between Fujian Straits Planning Institute and the Hua Min Digital Intelligence Technology Company gives the green light to the Kedah State Marine and Fisheries Economic Zone, a huge construction task covering port development and cold chain warehousing as well as the aquaculture operations themselves.
The estimated cost of the project comes to an eye-watering CNY 1.2 billion, boosting resource sharing and sharing important resources between the countries. China is respected for its experience in aquaculture and wild-caught fishery. They’ll be bringing their expertise in port equipment, aquaculture technology and cold chain tech to the project, which is predicted to give a welcome boost to Fujian’s ocean economy.
– A jetty at the Pantai Murni beach in Kedah, Malaysia | Photo courtesy of Cik Bak/Shutterstock
Insurance-wise there’s a lot to do to keep the project afloat, everything from marine cargo insurance to protect the equipment being transported to Malaysia, to Bonds and Guarantees insurance to cover every party’s contractual obligations.
GOOD NEWS FOR ELECTRIC VEHICLES AND MOTORBIKES
The Malaysian government has put electric vehicles at the forefront of its National Energy Transition Roadmap or NETR. It wants EVs to make up 15% of all vehicles sold by 2030, rising to 80% by 2050, and the decision comes with all sorts of advantages for everyone involved.
EV prices will remain lower than normal thanks to full exemption from import and excise duty. EV owners, who have been exempt from road tax since 2022, won’t have to pay until the end of 2025. From 2026 EVs will be taxed at a dramatically lower rate than petrol and diesel vehicles, with tax rates based on how powerful the electric vehicle’s engine is.
The government is offering people RM2,500 in annual income tax relief until 2027 for installing, renting or buying EV charging equipment and paying subscription fees. And there’s even a RM2,400 tax rebate on electric motorcycles in 2024 for some people, depending on what you earn.
Manufacturers investing in making EVs, including hybrids, electric vehicles and components get an income tax exemption and there’s an equivalent income tax exemption tax investment allowance on eligible capital expenditure. Companies investing in supporting tech like EV charger installation, maintenance and repair also get a generous tax exemption as well as a Green Investment Tax Allowance.
Insurance-wise, if four and two wheel EVs turn out to have either more or fewer accidents than non-EV vehicles, our sector will look carefully at how to underwrite the new motor insurance risks as fairly as possible.
HOW CAN WE HELP YOU WITH INSURANCE TODAY?
We’ll cover your personal life and business life with quality insurance at a fair price, from respected insurers with excellent reputations. If you’d like cover, call the TGC Asia team.
Sourceshttps://www.freemalaysiatoday.com/category/business/2024/07/11/ecrl-project-in-kelantan-almost-80-complete-as-of-may-says-mot/
https://www.malaysiakini.com/news/710650
https://www.freemalaysiatoday.com/category/nation/2024/06/25/datuk-ceo-of-highway-concessionaire-arrested-by-macc/
https://www.seafoodsource.com/news/supply-trade/chinese-companies-sign-on-to-build-malaysia-fishery-aquaculture-project
https://www.msn.com/en-my/news/other/going-ev-what-the-malaysian-government-is-doing-to-charge-up-the-transition/ar-BB1pDdAY