Govt to offer incentives for local EV players

pic by TMR FILE

THE government plans to increase investment and demand in the electric vehicle (EV) industry as well as identifying new strategies to promote EVs among local players and consumers.

International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said that the strategies involved include offering incentive packages such as road tax exemption, income tax relief for the purchase of EVs, and income tax relief for installing EV charging stations.

“Malaysia takes the compare-and-offer approach by forming a comprehensive, clear and consistent policy to cover the entire EV industry supplies and provide incentives in the use of EV,” he told Dewan Rakyat yesterday.

Mohamed Azmin noted that Malaysia’s regional competitors only focus on incentives to original equipment manufacturers (OEM).

“Among incentives for OEMs include pioneer status, investment tax allowance, as well as import and excise duty exemption,” he said.

For Malaysia, the government has planned several initiatives aimed to boost EVs like the National Automotive Policy which underlines specific initiatives to strengthen the EV ecosystem.

“These include critical parts manufacturers, standard-setting, as well as encouraging research and development, commercialisation and innovation to develop local technologies,” he stated.

According to Mohamed Azmin, the government currently provides incentives in the form of direct and indirect tax relief for the manufacturing of EVs, parts manufacturing and ecosystem development such as charging facilities.

“This effort is in line with Malaysia’s new investment policy through the National Investment Aspiration which focuses on attracting investments with a high level of economic complexity, advanced technology, and meets the environmental, social and governance framework,” he added.

In addition, Malaysia has received an investment worth RM4.3 billion from South Korea’s SK Nexilis to manufacture electro-deposited copper foil for EV batteries.

“The industry (EV facility) will be set up in Sabah, creating opportunities for new high-tech and highly skilled jobs.

“This proves the foreign investors’ confidence in Malaysia as a superior investment destination in the EV,” he further said.

This will also be able to contribute towards realising the government’s aspiration to be a carbon-neutral nation by 2050.