madani wm

Budget 2015‘s auto-related matters are likely to be aligned with the aspirations of the National Automotive Policy (NAP 2014), Malaysia Automotive Institute (MAI) CEO Mohamad Madani Sahari has said, according to a Bernama report.

“The automotive segment in the forthcoming Budget 2015 should align itself with the NAP,” Madani told the national news agency. “The fundamentals of implementation could be touched on in the budget and cover factors such as infrastructure, skilled workers, supply chains and the development of technologies.”

To be tabled in Parliament on October 10, Budget 2015 is also expected to yield a list of zero-rated or tax-exempted items with respect to the upcoming Goods and Services Tax (GST) – will our petrol and diesel be GST-ed?

nap 2014 roadmap slide 1

Bernama reports that NAP 2014, which concentrates on green initiatives, developing technologies and human capital, expanding the market and strengthening the industry ecosystem, has seen Proton and Perodua lead in the industry’s response. The launches of the Iriz and Axia are cited as examples.

Non-national carmakers, however, have asked for an extension of incentives for electric and hybrid vehicles. “Electric vehicles also need an incentive in the form of an extended duty exemption or on tax,” BMW Malaysia MD Alan Harris told Bernama.

“There was an incentive in the previous budget prior to the NAP 2014 which outlined that only locally-assembled vehicles would get incentivised. But electric vehicles are still new, not like the EEV (Energy Efficient Vehicle). Electric cars need a good take up and in the meantime, still need to be imported,” he added.

Meanwhile, Mercedes-Benz Malaysia sales and marketing VP Kai Schlickum said the government took a step in the right direction with the NAP-incentivised locally-assembled hybrid.

“It does benefit us, especially our S-Class Hybrid. With the S 400 L model qualifying and receiving full duty exemption, we are proud to be able to contribute in helping Malaysia fulfill its ambition of becoming a regional EEV hub.

“However, since the (CKD) hybrid incentive will expire in 2015, we wish it to be extended,” he told Bernama.

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