Mida Will Focus On EV Supply Chain For Future Automotive Investment Incentives

"EV is the way forward for us”, she said at an investors and vendors convention organised by Proton Holdings Bhd to promote investment into the Automotive Hi-Tech Valley (AHTV) in Tanjung Malim on Monday (July 17). In relation to the AHTV project, Lim stated that the government is willing to extend tax breaks for companies planning to invest in AHTV for a maximum of 15 years, rather than the traditional five to ten years.

"It depends on the value of investment. If you're investing RM10 million to RM500 million, you can get a straight forward of up to 10 years. If the investment is anything more than RM500 million, you are getting up to 15 years," Lim explained.
Following that, Lim stated that Mida does not currently bestow any grants because no additional allocation was made in Budget 2023. According to Lim, grants are activity-based, with previous ones focusing on training and research and development (R&D).

“is in the process of requesting additional grants for the private sector to conduct primarily training and R&D activities”, Lim added. Aside from manufacturing plants, Lim encouraged companies to consider establishing operational headquarters in Malaysia, supplementing that by bringing over support services, as Mida offers some incentives for supportive activities.

When asked if tax breaks could be extended to local vendors who want to relocate to AHTV, Lim said it depends on the value creation generated by their activities.
"We will look at whether they are topping up investments or not, or are they just relocating. So, there are a lot of considerations where we look at valuation for tax incentives. We will use criteria like capital investments, job opportunities that they created,” she said.