With most developed countries having gradually embraced the electric vehicle (EV) market into their economy, Malaysia too is looking to follow suit by refining its own EV policy. According to international trade and industry minister Mohamed Azmin Ali, the government is studying to add more attractive incentives in order to encourage the ownership and development of related infrastructure of electric-based vehicles in the country.
Examples of such incentives include full road tax exemption, and also income tax relief for both EV purchases and installation of charging facilities, he added. Meanwhile, OEM (original equipment manufacturers) specific incentives include pioneer status, investment tax allowance, as well as import and excise duty exemption.
“Malaysia takes the ‘compare and offer’ approach by forming a comprehensive, clear and consistent policy to entice EV use, while our regional competitors focus on incentives to OEMs,” Azmin told the Dewan Rakyat earlier today. “The National Automotive Policy underlines specific initiatives to strengthen the EV ecosystem, such as critical parts manufacturers, standard setting, and encouraging research and development, commercialisation and innovation to develop local technologies.”
In the case of Malaysian-based OEMs, the implementation of these new incentives will also add to the existing benefits offered by the government. Azmin says local manufacturers are currently provided with direct and indirect tax relief for the development of electric vehicles and their parts, as well as the development of EV-based ecosystems (ie: charging infrastructure etc).
Whether Malaysia would eventually see substantial growth in EV ownership and development remains to be seen. Nevertheless, it will likely take several years until we are able to see the potential outcome.
(Source: The Edge)