According to a report by Bernama, the government has introduced various initiatives and incentives to enhance the capacity of the local automotive industry. The ministry of investment, trade and industry (MITI) said one of the targets with this is to increase exports of vehicles as well as spare parts and components.
It 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 exports 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 said in a written response posted on the Parliament website. The ministry was replying to Datuk Indera Mohd Shahar Abdullah (BN-Paya Besar) regarding the efforts made to develop the local automotive industry.
Local industry players who also obtained import duty reductions will be able to have a cost-competition advantage, which offers greater market opportunities for companies here. “In addition, Malaysia is undertaking a strategic cooperation under the ASEAN Mutual Recognition Arrangement (AMRA) to facilitate local automotive companies wishing to export their products,” MITI said.
“With AMRA, technical trade barriers, as well as certification and testing requirements, can be addressed or minimised,” it added. On the matter of vehicle exports, MITI shared that both Proton and Perodua have exported 24,272 units from 2019 to September this year, with the split being 17,118 units for Proton and 7,154 units being Perodua models.
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With these incentives, hope R&D in stuff like design can come again, otherwise its all incentive just rewarding another brand’s product & creation
Haha one Japanese link just rebadge and dump its older tech here another Chinese link also being used to dump its older engine & platform here which is no longer being sold in China or international market.
please no, just kill the industry and focus on other profitable industries. The automative industry is 10 years lacking and can’t keep up. Using incentives when subsidies are cut, this is the worst way possible.