Govt offers various initiatives, incentives to drive local automotive industry, says MITI

18 Nov 2024

The government has introduced various initiatives and incentives to enhance the capacity of the local automotive industry, aiming to increase exports of vehicles, including spare parts and components, according to the Ministry of Investment, Trade, and Industry (Miti).

The ministry emphasised that fiscal and financial incentives, including reductions in both direct and indirect taxes, have been maintained alongside the provision of trade financing facilities and services for exporters through EXIM Bank.

“Among the initiatives taken is the signing of free trade agreements (FTAs) to obtain reductions in import duties when exporting to FTA partner countries,” Miti stated on the Parliament website on Monday.

It was replying to Datuk Indera Mohd Shahar Abdullah (BN-Paya Besar) regarding the development of the local automotive industry.

Miti also said that the import duty reductions obtained by local industry players also provide a cost-competitive advantage, offering greater market opportunities for local automotive companies.

“In addition, Malaysia is undertaking strategic cooperation under the Asean Mutual Recognition Arrangement (AMRA) to facilitate local automotive companies wishing to export their products.

“With AMRA, technical trade barriers, as well as certification and testing requirements, can be addressed or minimised,” it added.

Miti also shared that based on information provided by vehicle manufacturers Proton and Perodua, the total number of vehicles exported by both local brands from 2019 to September 2024 stood at 24,272 units.

Of this total, 17,118 units were Proton models, while the remaining 7,154 units were Perodua models.

Source: Bernama