The recently announced Budget 2022 provides various incentives to the electric mobility industry
by TMR / pic by BLOOMBERG
MALAYSIAN Green Technology and Climate Change Corp (MGTC) said they are committed to ensuring that the public-private partnership will enhance its commitment to increase its currently 400 odd charging stations infra throughout Peninsular Malaysia to more than 2,500 units.
“We call upon the public to heed this opportunity to migrate to electric vehicle (EV),” MGTC CEO Tan Sri Shamsul Bahar Mohd Nor said in a recent statement.
He added that the Budget 2022 introduction of tax exemptions on the import of EVs, road tax exemption for EVs and personal tax relief of up to RM2,500 for costs relating to EV charging stations would not only benefit the consumers but also allow participation from EV manufacturers to populate their EV brands into Malaysia.
“This will certainly pave the way for Malaysia to be a regional manufacturing hub for EV as well as charging stations. With the growing request for hydrogen vehicles to be used for the long haul, this incentive could generate a variety of zero-carbon vehicles to be introduced in the near future,” Shamsul Bahar said.
“The immense budget allocated towards sustainability reiterates Malaysia’s commitment to be a net zero greenhouse gasses (GHG) emission nation by 2050 and has clearly demonstrated its seriousness in combating climate change,” he added.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said in tabling the Budget 2022 last week that the government plans to provide full exemption on import duty, excise duty and road tax for EV cars. On top of that, road tax exemption of up to 100% is also given to the vehicles.
“The government sees the potential of EV that have the characteristics of energy efficient vehicles as an effort to minimise vehicle smoke pollution into the air,” said Tengku Zafrul.
According to MGTC, the transport sector is responsible for the emission of almost a quarter of carbon dioxide in Malaysia and more than 165 million tonnes of GHG emission needs to be removed as indicated in the Low Carbon Mobility Blueprint by 2030. This reduction is equivalent to the planting of over 400 million trees.
“In realising the objective, the electric mobility industry has to be incentivised to spur the interest of the early adopters to switch to EV from internal combustion engine,” said Shamsul Bahar.
MGTC noted that the RM1 billion fund in the Budget 2022 under Bank Negara Malayasia would certainly help the small and medium enterprises (SMEs) to restart their operations while embracing sustainable and low carbon practices in their business.
The fund is aimed to allow micro-SMEs to transition to low carbon and the expansion of the green tax incentives to include green technology products and the usage of sustainable raw materials and renewable energy and to also improve the energy efficiency of buildings or machinery.