The government auction is expected to bring in at least $300 million for the countrys transportation system, a spokesman said on Monday.
“This will allow the government to fund critical public transportation projects, such as new high-speed rail and public transport upgrades,” Ahmad Zahir said.
“In addition, this will allow us to increase the amount of revenue we receive from taxes on the sale of government vehicles, to fund the construction of roads and other infrastructure projects.”
The Malaysian government is hoping the auction will boost its tourism industry and boost the economy.
The government will also use the proceeds to create new jobs for locals, Zahir added.
“The government has already begun the process of applying the proceeds from this auction to construction of public transport infrastructure, including high- speed rail, and to build roads,” he said.
The move follows a government announcement earlier this year to raise $10 billion to expand the country’s high-tech infrastructure.
The funds will come from a new tax on vehicles sold in the country.