Govt Offers Various Incentives To Boost Local Auto Industry - MITI

According to the Investment, Trade and Industry Ministry (MITI), the government has implemented a number of programs and incentives to strengthen the local auto industry's capabilities with the goal of boosting vehicle exports, including spare parts and components.

MITI emphasized that trade finance services and facilities for exporters through EXIM Bank have been maintained, coupled with fiscal and financial benefits, such as lower direct and indirect taxes, as reported by Bernama.


“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.
More market prospects are available to local businesses because to the cost-competition advantage that local industry players who also received import duty reductions would have.

According to MITI, Malaysia is also pursuing a strategic partnership under the ASEAN Mutual Recognition Arrangement (AMRA) to support regional automakers looking to export their goods.

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

According to MITI, Proton and Perodua exported 24,272 vehicles between 2019 and September of this year, with 17,118 of those being Proton models and 7,154 being Perodua models.