The government says it is in the midst of identifying new strategies to promote the electric vehicle (EV) industry in Malaysia among foreign investors. According to international trade and industry minister Datuk Seri Azmin Ali, these are expected to outline a number of specific initiatives, including those to strengthen the development of the EV ecosystem.
This includes the manufacturing of critical components, the establishment of standards to support the EV ecosystem and encouraging research and development activities to develop local technologies.
Speaking at the Dewan Rakyat earlier today, he said elements focusing on policy formulation efforts were discussed with the finance ministry recently in a Budget 2022 dialogue, and these included plans for an incentive package to attract investment in addition to strengthening existing incentives for the production of EV vehicles and components as well incentives focusing on consumers.
He added that the move, which is in line with the government’s goal to reduce carbon emissions by the transport sector, is expected to encourage investment in terms of EV production or its components, develop infrastructure support including EV charging stations as well as increase consumer demand for EV vehicles.
Earlier this year, it was reported that the new EV policy would offer a “handsome level” of tax incentives, including fixed incentives that will benefit both users and the industry, and a host of benefits for EV adopters.
According to Malaysia Automotive, Robotics and IoT Institute (MARii) CEO Datuk Madani Sahari, users could look forward to direct incentives such as lower road tax, the benefit of a green parking scheme, toll rebates as well as rebates on the installation of home chargers.
He said this would be on top of a huge tax reduction for EVs, which would enjoy zero excise and import duties, full sales tax exemption and zero road tax. Hopefully, more details of the new EV policy will emerge in the Budget 2022, which will be tabled in Parliament at the end of October.