THE forthcoming Budget 2026 is viewed as a defining moment for the nation’s higher education sector and electric vehicle (EV) industry, with key stakeholders calling for forward-thinking policies to secure global competitiveness and sustainable growth.
Bernama cited Prof Mushtak Al-Atabi, Provost and CEO of Heriot-Watt University Malaysia, describing last year’s RM18 billion allocation for higher education as a positive foundation but stressed the need for increased ambition to prepare graduates who are “innovative, inclusive, and resilient.”
He highlighted that Budget 2026 must focus on nurturing these qualities to ensure Malaysia’s long-term success on the global stage.
Mushtak, also chairman of the Vice Chancellors Council for Private Universities, underlined the importance of internationalisation, noting that Malaysia is on track to meet its target of 250,000 international students by 2025.
He urged the government to introduce targeted incentives to attract more students, particularly to private institutions, which would enhance Malaysia’s global standing and generate economic benefits.
He further called for support of “blue-sky” research to foster breakthroughs without immediate commercial applications, emphasising that “increased funding and stronger academia-industry partnerships will create a dynamic research ecosystem that fosters creativity, discovery and leadership.”
Investments in virtual learning platforms, smart campus infrastructure, and digital tools were also deemed critical to prepare students for a flexible and personalised workforce.
On inclusivity, Mushtak insisted that supporting neurodiverse and disabled learners is both a moral imperative and a way to unlock hidden talent, recommending dedicated funding and policies to improve accessibility.
To elevate education standards, he advocated for a unified national quality framework aligned with international benchmarks to boost graduate employability and Malaysia’s global university reputation.
Mushtak also called for Malaysia to lead in STEM and Artificial Intelligence (AI), describing these fields as essential for future innovation and economic growth.
“Budget 2026 is not just about numbers, it is an opportunity to invest in Malaysia’s future,” he said.
Meanwhile, the Malaysian Automotive Association (MAA) has urged the government to extend tax incentives for battery electric vehicles (BEVs) to sustain growth and attract investments. Current incentives exempt fully-imported BEVs from import and excise duties until the end of 2025, and locally assembled BEVs until 2027.
MAA President Mohd Shamsor Mohd Zain proposed extending these incentives to 2027 for fully-imported BEVs and to 2030 for locally assembled models.
He noted that BEVs currently make up only 4 per cent of total industry volume despite a 91 per cent growth from the previous year, stressing that continued incentives are vital to maintaining momentum.
Shamsor highlighted that imported BEV models often incorporate advanced technology and safety features, which build consumer confidence and encourage the transition away from internal combustion engine vehicles.
Extending incentives would also accelerate the development of electric vehicle charging bays, which currently number 4,161 nationwide, with a government target of 10,000 by the end of 2025.
He also pointed to the increasing involvement of Chinese original equipment manufacturers (OEMs) in Malaysia and expressed optimism that stronger confidence from BEV OEMs would lead to more local assembly operations, creating jobs for Technical and Vocational Education and Training graduates.
To ease the transition towards full electrification, MAA has recommended a 75 per cent reduction in customs duties for locally assembled hybrid electric vehicles (HEVs) until 2027.
Shamsor explained that HEVs serve as a practical intermediary for consumers concerned about range anxiety, charging infrastructure, and charging time.
The government’s target is for electrified vehicles, including BEVs, HEVs, plug-in hybrids and fuel cell vehicles, to constitute 15 per cent of total industry volume by 2030 and 38 per cent by 2040.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim is scheduled to present Budget 2026 in Parliament on 10 October. - October 2, 2025
