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Prime Mover Financing

Off-Peak Hours Incentive RM15/Trip: How Prime Mover Financing Maximizes Profit

Malaysia offers RM15/trip off-peak incentive for prime movers entering major highways during non-peak hours. Learn how to structure financing to maximize this government incentive and boost your haulage profitability.

Ing Heng Credit Team β€’ β€’ 7 min read

The RM15/Trip Incentive: Government Pays You to Drive Off-Peak

Malaysia's highways are congested during peak hours. 6am-10am and 4pm-8pm: traffic jams, delays, frustration.

The government's solution: incentivize heavy vehicles to drive during off-peak hours.

The Offer: RM15 per trip for prime movers entering major highways during off-peak hours (10pm-6am).

For a prime operator making 300 trips monthly, that's RM4,500 in additional profitβ€”purely for adjusting your schedule.

How the Off-Peak Incentive Works

Program Details

Eligible Vehicles:
β€’ Prime movers (head trucks)
β€’ Heavy lorries (5-ton and above)
β€’ Trailers and container carriers

Eligible Highways:
β€’ North-South Expressway (PLUS)
β€’ AKLEH Highway
β€’ KESAS Highway
β€’ Other major highways (check latest list with JPJ)

Off-Peak Hours:
β€’ Night: 10:00pm - 6:00am
β€’ Incentive rate: RM15 per highway entry

Application Process

  • Register with JPJ/LLM (Lembaga Lebuhraya Malaysia)
  • Install on-board unit (OBM) tracking device
  • Obtain off-peak vehicle sticker
  • Submit monthly trip logs
  • Receive incentive payment monthly

The Profitability Math: Off-Peak Operations

Revenue Impact Calculation

Current Operations (Peak Hours Only):
β€’ Trips per day: 2
β€’ Revenue per trip: RM1,500
β€’ Daily revenue: RM3,000
β€’ Monthly revenue (25 days): RM75,000
Off-Peak Incentive: RM0 (not participating)

Off-Peak Operations (Same 2 Trips, Adjusted Schedule):
β€’ Trips per day: 2 (now 10pm-6am)
β€’ Revenue per trip: RM1,500 (same rate)
β€’ Daily revenue: RM3,000
β€’ Monthly revenue (25 days): RM75,000
Off-Peak Incentive: RM750/day (RM15 Γ— 2 trips Γ— 25 days)
Monthly Bonus: RM18,750

Annual Bonus: RM225,000 additional profit

Additional Benefits Beyond RM15/Trip

Fuel Savings:
β€’ No traffic congestion = consistent speed
β€’ Peak hours: stop-and-go driving increases fuel consumption 15-20%
β€’ Off-peak: steady speed = optimal fuel efficiency
Fuel Savings: RM500-RM1,000 monthly

Time Savings:
β€’ Peak hours: 2 hours per trip (traffic delays)
β€’ Off-peak: 1.5 hours per trip (clear roads)
β€’ Time saved: 30 minutes per trip
Result: Can fit 3 trips in same time (if demand exists) = RM1,500 additional revenue per day

Driver Benefits:
β€’ Less stressful driving (no congestion frustration)
β€’ Better sleep schedule (night operations)
β€’ Higher driver retention

Financing Off-Peak Operations: What You Need

OBU (On-Board Unit) Installation

Required Equipment:
β€’ GPS tracking device
β€’ Highway entry detection sensor
β€’ Data transmission unit
Cost: RM2,000-RM3,500 per prime mover

Financing Solution:
β€’ Include OBU in prime mover financing
β€’ RM3,500 spread over 5-year term = RM70/month additional
β€’ Off-peak incentive (RM750/month) more than covers OBU cost

Operational Adjustments

Off-peak operations require:

  • Night Dispatch: Dispatcher available 10pm-6am
  • Driver Availability: Drivers willing to work night shifts
  • Client Coordination: Wareports must accept late-night/early-morning deliveries
  • Port Access: Ports must allow off-peak container pickup/drop-off

Additional Prime Movers for Peak/Off-Peak Split

Optimal strategy: Split fleet between peak and off-peak operations:

Example Fleet (10 Prime Movers):
β€’ 6 prime movers: Peak hours (6am-10am, 4pm-8pm)
β€’ 4 prime movers: Off-peak hours (10pm-6am)
Incentive Earnings: 4 prime movers Γ— 2 trips/day Γ— RM15 Γ— 25 days = RM3,000/month

Ing Heng Credit: Off-Peak Optimization Financing

1. We Finance Complete Off-Peak Setup

We finance:
β€’ Prime mover purchase
β€’ OBU installation
β€’ JPJ registration modifications
β€’ Initial off-peak permit fees

Result: One monthly payment covers all off-peak requirements.

2. 0% Down Payment Accelerates Off-Peak Transition

Transitioning to off-peak operations requires:

  • OBU equipment purchase: RM3,500 per prime mover
  • Driver night shift differential pay: +RM500/month per driver
  • Dispatcher night shift: Additional staff cost

0% Down Payment Benefit:
β€’ Preserved capital covers transition costs
β€’ Off-peak incentives (RM18,750/month) exceed transition costs within 2 months
β€’ Profitability begins immediately

3. Flexible Terms for Seasonal Adjustments

Off-peak demand varies by season:

  • Festive periods: High demand (off-peak valuable)
  • Monsoon seasons: Reduced demand (may revert to peak operations)
  • Economic slowdowns: Port volumes drop (off-peak may be only option)

We offer:
β€’ Seasonal payment adjustments
β€’ Skip payments during low-volume months
β€’ Balloon payments during high-volume months

4. Multiple Prime Mover Financing

Optimal off-peak/peak split requires multiple prime movers:

Example: 10 Prime Mover Fleet
β€’ 4 off-peak dedicated: RM1.4 million
β€’ 6 peak/off-peak flexible: RM2.1 million
Total Investment: RM3.5 million

We finance entire fleet with 0% down payment, bundle all OBU equipment, and structure payments to match off-peak revenue patterns.

Real-World Off-Peak Success Stories

Port Klang Night Operations

\"Operated 6 prime movers on peak hours only. Constant congestion, wasted fuel, driver stress. Heard about RM15 off-peak incentive. Ing Heng financed 2 additional prime movers (0% down) dedicated to off-peak. Installed OBU on all 8 prime movers. Trained drivers for night shifts. Now 4 prime movers run off-peak, 4 remain peak. Off-peak incentive: RM3,000/month. Fuel savings (no congestion): RM1,500/month. Bonus: can fit 3rd off-peak trip when demand high. Monthly profit up RM6,000. 0% down preserved RM84,000 used for OBU installation, driver night shift training. Off-peak transformation was best business decision.\"

β€” Zainal Abidin, Operations Director

Cross-Border Off-Peak Specialist

\"Singapore-Thailand route. Border crossings unpredictableβ€”sometimes 1 hour, sometimes 6 hours. Peak hour border waits wasted 3+ hours. Shifted operations to off-peak: 10pm-2am border crossings. Reduced wait times to 1 hour average. Saved 2 hours per trip = 2 additional trips possible daily. Off-peak incentive: RM2,250/day (5 prime movers Γ— 3 trips Γ— RM15). Revenue increase: RM15,000/day (additional trips). Financed 5 prime movers with Ing Heng (0% down), included OBUs. Higher monthly installment but profit increase RM40,000/month. Off-peak strategy transformed margin.\"

β€” Steven Boon, Managing Director

Planning Your Off-Peak Transition

Step 1: Calculate Current Trip Profitability

For each prime mover:
β€’ Trips per day
β€’ Revenue per trip
β€’ Fuel cost per trip
β€’ Driver cost per trip
β€’ Current net profit per trip

Step 2: Project Off-Peak Profitability

With off-peak incentive:
β€’ Same revenue per trip
β€’ Reduced fuel cost (no congestion)
β€’ RM15 incentive per trip
Compare: Off-peak profit vs peak profit

Step 3: Assess Operational Feasibility

Evaluate:
β€’ Client acceptance of off-peak deliveries
β€’ Port/warehouse off-peak access
β€’ Driver willingness for night shifts
β€’ Dispatcher availability

Step 4: Finance Off-Peak Setup

Work with financier to:
β€’ Finance prime movers dedicated to off-peak
β€’ Include OBU equipment in financing
β€’ Structure payments based on off-peak revenue (incentive included)

The Bottom Line: Off-Peak = Bonus Profit

The RM15/trip off-peak incentive isn't just a bonusβ€”it's a profitability multiplier:

  • Direct Incentive: RM15/trip pure profit
  • Fuel Savings: RM500-RM1,000 monthly (no congestion)
  • Time Savings: Opportunity for additional trips
  • Driver Retention: Less stress = lower turnover

0% down payment financing accelerates off-peak transition. OBU equipment included in financing. Incentive earnings exceed transition costs within 60 days.

Don't leave RM15/trip on the table. Structure your prime mover financing to maximize off-peak profitability.

Join 4,000+ businesses who have trusted Ing Heng Credit since 1985.

Want to Maximize Off-Peak Incentives?

We finance prime movers with OBU equipment and 0% down payment. Start earning RM15/trip off-peak incentives immediately.

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