A BMW X5 being charged at Paradigm Mall in Petaling Jaya. The mall offers a handful of chargers for electric cars at its car park. Charging is free.
KUALA LUMPUR: The government is studying incentive packages to encourage electric vehicle (EV) ownership among Malaysians, says Senior Minister (International and Trade) Datuk Seri Mohamed Azmin Ali.
Azmin said this involved road tax exemptions, incentives via income tax returns, and income tax relief for the installation of EV facilities.
Azmin said Malaysia currently employed the "compare and offer" approach by implementing clear and consistent policies covering the entire supply chain of the EV industry, aside from encouraging the use of such vehicles in the country.
"In comparison, regional competitors focus on incentives to OEMs (original equipment manufacturers),'' he said in Parliament during his winding-up speech on the 12th Malaysian Plan (12MP) on Tuesday (Oct 5).
Azmin said the national automotive policy (NAP) has outlined specific initiatives to strengthen local EV ecosystems such as critical component manufacturers, setting standards and encouraging research, development, commercialisation and innovation.
At present, Azmin said the government is offering incentives such as direct and indirect tax relief for the installation or manufacturing of EVs, the manufacturing of components and the installation of charging facilities.
"Among incentives enjoyed by the OEM include pioneer status, investment tax allowances, as well as import and excise duty exemption," he added.
Azmin said efforts to encourage the use of EVs among Malaysians is also in line with the government's efforts to attract high-value investments.
At present, Azmin said the government had attracted RM4.3bil worth of investments from South Korea-based SK Nexillis to set up a facility at the Kota Kinabalu Industrial Park to manufacture electro-deposited copper foil for EV batteries.
"The SK Nexillis investment is the first outside of South Korea and this proves the confidence of foreign investors in Malaysia as a superior investment destination in the EV industry," he said.
"These efforts will contribute towards the government's move to make Malaysia a carbon-neutral country by 2050," he added.
