Budget 2022: Auto sector expects initiatives to boost industry

By BERNAMA | 20 October 2021

KUALA LUMPUR: Automotive players expect the initiatives to strengthen the local electric vehicle (EV) industry and green technology ecosystems will be announced in the upcoming Budget 2022.

This is in progression with the national aspiration of low carbon mobility objectives and green mobility agenda as spelt out in the 12th Malaysian Plan (12MP) unveiled last month.

Volkswagen Passenger Cars Malaysia (VPCM) managing director Erik Winter said the group is encouraged by the government’s ambition as envisaged in the 12MP to enhance electro mobility (e-mobility).

“Malaysia should not lose out on the opportunities that EVs can bring, so we hope the government will allocate funding in Budget 2022 in developing an e-mobility roadmap for Malaysia.

“We need to look into creating a holistic EV ecosystem, expanding proper infrastructures, introducing tax incentives for both businesses and customers, and more. We at VPCM are always ready to support the government with industry insights and knowledge wherever needed,” he said.

Winter said the government’s ambition in the 12MP to enhance e-mobility is a crucial step for the country to become a low-carbon nation, and that the shift is already happening globally where EVs are quickly becoming the norm.


Honda Malaysia Sdn Bhd president and chief operating officer Sarly Adle Sarkum said Honda was the pioneer in introducing hybrid technology to the Malaysian market in line with the government’s effort to promote and develop green technology.

“With this, we appreciate if the government can encourage various green technology policies and incentives to promote green technology among automotive players in the industry,” he said.

Sarly said Honda Malaysia hopes the government would continue to extend the sales tax exemption into 2022.

“We hope the government would consider to further extend the sales tax exemption up until June 2022, as we believe it will help many Malaysians buying cars with extra savings and at the same time boosting the automotive industry.”

Meanwhile, the Federation of Motor and Credit Companies Association of Malaysia is hoping for government grants and soft loans for its members in the national budget.

President Datuk Tony Khor said the federation’s digital initiative called ezAuto, which aims to transform the used car industry, is still a work in progress.