Machinery Financing Malaysia - Construction Budget Breakdown 2026

2026 Construction Budget Planning

Construction companies need machinery. Excavators, lorries, forklifts. The costs add up fast. Smart contractors plan equipment budgets for 2026.

This guide breaks down machinery financing options. Real numbers. Bank requirements. Alternative solutions that preserve cash flow.

Essential Construction Machinery Prices

Excavator Prices 2026

• Komatsu PC200: RM340,000 - RM380,000
• CAT 320: RM450,000 - RM520,000
• Used 5-year unit: RM180,000 - RM220,000

Lorry Prices 2026

• 5-ton lorry: RM120,000 - RM150,000
• 10-ton lorry: RM180,000 - RM220,000
• Prime mover: RM250,000 - RM320,000

Forklift Prices 2026

• 2.5-ton electric: RM45,000 - RM65,000
• 3-ton diesel: RM55,000 - RM75,000
• 5-ton heavy duty: RM90,000 - RM120,000

Bank Financing Requirements 2026

What Banks Offer

• Interest rate: 4.6% - 6.0% per year
• Maximum loan: 90% of equipment value
• Down payment: 10% - 20% required
• Equipment age limit: 5 years maximum
• Processing time: 2 - 4 weeks

Real Example: Komatsu PC200

Equipment price: RM340,000

Bank Offer:
• Down payment: RM34,000 (10%)
• Loan amount: RM306,000
• Interest (5% × 7 years): RM107,100
• Monthly payment: RM4,900
• Total cost: RM447,100

Problem: RM34,000 cash needed upfront. Used equipment over 5 years rejected.

Ing Heng Credit: Better Option

What We Offer

• Interest rate: Competitive rates
• Maximum loan: 100% full financing
• Down payment: 0% zero deposit
• Equipment age: No age limit
• Processing time: 24 - 48 hours

Same Komatsu PC200 with Us

Equipment price: RM340,000

Ing Heng Offer:
• Down payment: RM0 (0%)
• Loan amount: RM340,000
• Monthly payment: RM4,850
• Total cost: RM407,400
• Cash saved: RM34,000 for operations

Benefit: No upfront cash. Fast approval. Used equipment OK.

2026 Budget Planning by Equipment Type

Small Contractor Budget

Starting construction business. Need first excavator.

Equipment: Used Komatsu PC200 (RM180,000)

Bank: Rejected (8 years old)
Ing Heng: Approved 100% financing, RM0 down

Growing Fleet Budget

Adding 3 lorries to existing fleet.

Equipment: 3 × 5-ton lorries (RM360,000 total)

Bank: RM36,000 down payment required
Ing Heng: RM0 down, preserve cash for fuel and maintenance

Warehouse Expansion Budget

Construction company adding warehouse. Need forklifts.

Equipment: 2 × 3-ton forklifts (RM130,000 total)

Bank: RM13,000 - RM26,000 down payment
Ing Heng: 0% deposit, same monthly payment

Capital Allowance Tax Benefits 2026

Construction Equipment Depreciation

Year 1: 40% initial allowance = RM136,000 deduction on RM340,000 excavator
Year 2-5: 20% annual allowance

Total tax deductions exceed equipment cost. Reduces taxable income significantly.

Why 0% Down Payment Matters

Construction is cash-intensive. Fuel, wages, materials, rental. Every RM matters.

RM34,000 down payment on excavator = 2 months fuel for fleet. Or 1 month wages. Or materials for small project.

0% down keeps cash working. Not tied up in equipment deposit.

Used Equipment Financing

Banks reject equipment over 5 years old. Many good machines last 10+ years.

We finance used equipment based on condition. Komatsu, CAT, Toyota, Nissan. Any brand. Any age. If it works, we finance it.

Fast Approval for Time-Sensitive Projects

Construction deadlines wait for no one. Bank takes 3-4 weeks. Project awarded tomorrow needs equipment next week.

We approve in 24-48 hours. Equipment on-site. Project starts on time.

2026 Machinery Budget Summary

• Plan equipment needs for the year
• Compare bank vs alternative financing
• Calculate total cost including down payment
• Consider used equipment savings
• Factor tax benefits into budget

Smart machinery financing preserves cash flow. Gets equipment needed. Builds business value through ownership.