What is the estimated annual cost of the new vehicle concession?

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The estimated annual cost for the new vehicle concession could reach RM300 million after the initial five years.

The proposed new vehicle concession, which is set to involve approximately 12,500 vehicles over a 15-year period, could result in annual management fees for Putrajaya amounting to as much as RM300 million. This significant cost projection applies to the period after the first five years of the concession agreement.
Potential Fleet Composition and Pricing

The new fleet is expected to replace the current vehicles, which include Proton Perdana and Toyota Camry models. Reports suggest the government is considering a mix of luxury minivans, sedans, and mid-range vehicles. Specifically, the procurement might include 32 units of the Toyota Vellfire, priced at approximately RM362,000 each, which would be designated for ministers and deputy ministers. Additionally, up to 3,000 units of the Honda Accord, costing around RM148,512 each, are earmarked for senior government officers.
Additional Vehicle Considerations

Beyond the luxury and executive sedans, the government is also reportedly contemplating the inclusion of up to 8,000 units of more affordable Proton models. These could comprise the Proton Persona and the Proton Saga, indicating a tiered approach to vehicle allocation within the government fleet.
Management Fee Structure and Duration

The projected RM300 million annual cost is specifically for management fees and is anticipated to commence after the initial five-year phase of the 15-year concession. This structure implies that the costs during the first five years might differ, with the full management fee burden potentially materialising in the subsequent years of the agreement.

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What is the estimated annual cost of the new vehicle concession?

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