KUALA LUMPUR, July 18 — The government will support foreign carmakers in bringing in more electric vehicle (EV) models for local assembly, said Deputy Investment, Trade, and Industry Minister Liew Chin Tong today.
He said EVs assembled in Malaysia are not subject to the minimum price limit of RM100,000 imposed on imported EVs, in line with the National Automotive Policy 2020.
Liew noted the government is focusing on several strategic approaches to strengthen the overall electrified vehicle ecosystem.
To support the development of the EV industry and its ecosystem, he said the government has introduced various initiatives, including non-financial initiatives.
Liew said given the high cost of developing EV technology, it is a challenge for local car manufacturers to produce EVs at competitive prices over internal combustion engine (ICE) vehicles, which have long-established technology.
“To help local carmakers produce EVs at more competitive prices, the government has offered more attractive tax incentives compared to ICE vehicles.
“Specifically, locally assembled battery electric vehicles and fuel cell electric vehicles can enjoy full exemptions from import duties, excise duties, and sales tax until December 31, 2027,” he said during a special chamber session in Parliament.
Liew was responding to a question from Khairil Nizam Khirudin (PN-Jerantut) about efforts to enhance the capability of local carmakers to produce affordable zero-emission vehicles for all segments of the population.
To encourage technology providers to support EVs, Liew said the government offers income tax exemptions through Pioneer Status or Investment Tax Allowance of up to 100 per cent for up to 10 years, to promote investment in the production of EVs and related critical components such as batteries and motors.
He said incentives offered by the government are not limited to manufacturing or assembly activities and completely built-up imported EV models.
The government also offers the Green Investment Tax Allowance to technology providers supporting the EV industry, such as firms providing EV charging services, Liew said.
— Bernama
