KUALA LUMPUR: The Government has announced the extension and enhancement of automotive industry incentives in its effort to make the industry competitive as it transitions towards electromobility.
While the extended incentives would continue to promote investments in energy efficient vehicles, they have been expanded to cover a range of high-tech and high-value products such as electric vehicles, engines, powertrains, light detection and ranging (LIDAR), radio detection and ranging (RADAR) and advanced driver-assistance systems (ADAS).
Details were not disclosed.
The Government is hoping that such incentives would attract foreign investors and spur more homegrown companies to explore expansion opportunities by venturing into new high-tech and high value-added products while expanding their supply chain in the region.
READ MORE: Malaysia needs to shift focus to EV perks — fast
From 2014 until now, the Malaysians Government had approved tax incentives for 13 automotive projects with investments of RM4.6 billion via the Malaysian Investment Development Authority.
However, with the global auto industry undergoing a structural shift, the Government said it saw the need to revise its plans for the local industry to ensure its growth.
The announcement comes at a time when various Asean countries such as Thailand and Indonesia are jockeying to become the future production hub for the next generation of mobility products such as electric vehicles and fuel cell vehicles as well as related components.
Last week, Thailand said it aims to only sell zero-emission vehicles in the country from 2035 as it works to transform itself from a regional hub for the production of conventional autos to one making electric cars.
Indonesia sees itself as an energy storage hub. In February, Indonesia had received an investment proposal from US electric car maker Tesla, which is keen to exploit the sprawling country's nickel reserves to make batteries. At 21 million tonnes, Indonesia holds 22% of the world's nickel reserves.
Indonesia has been publicly wooing Tesla to invest in the country to help develop its ambitious EV and battery industry plans.
