Image from MITI
Malaysia’s Ministry of Investment, Trade and Industry (MITI) is finalising the New Customised Incentive Mechanism, which is set to replace the current system with a fixed and fairer structure. So, what should you know about it?
For your information, the initiative will introduce a clearer tax and incentive framework for vehicle investments. It aims to give the automotive industry more certainty while encouraging ecosystem development and aligning with global mobility trends.
What’s changing with the incentive system
Additionally, the new mechanism will replace the previous case-by-case “Customised Incentives” that have been in place since the National Automotive Policy of 2014.
Moreover, the older system often relied on Cost-Benefit Analyses and committee approvals, which created uncertainty for automakers.
Furthermore, thanks to the New Customised Incentive Mechanism (NCM), companies can expect a more transparent and standardised structure. This includes support for localisation, exports, research and development, technology transfer, supply chain growth, and EV infrastructure.
During the launch of iCaur 03, MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz highlighted that these measures also focus on strengthening Malaysia’s e-charging network to build consumer confidence in electric vehicles.
Our thoughts
The shift towards a rule-based and transparent system is timely. Industry players have been expecting the rollout around October, and this could help reduce negotiation delays while allowing automakers to plan better.
Although the finer details are still to come, the policy could simplify how incentives are applied and boost Malaysia’s position in the automotive and EV sectors.
What’s next?
What do you think? Will this new framework make Malaysia more attractive for carmakers and EV investments? Stay tuned to TechNave.com for more updates.
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