Govt studying more incentives to entice domestic EV ecosystem, says Azmin

Govt studying more incentives to entice domestic EV ecosystem, says Azmin
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KUALA LUMPUR (Oct 5): The government is studying more incentives to encourage electric vehicle (EV) ownership and development of related infrastructure in the country, said International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.

This includes road tax exemption, income tax relief for purchase of EVs, as well as income tax relief for installation of EV charging facilities, the minister told the Dewan Rakyat.

“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 (original equipment manufacturers).

“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,” Mohamed Azmin said during his winding-up speech for the Ministry of International Trade and Industry (MITI) for the recently-tabled 12th Malaysia Plan (12MP).

“The government currently provides incentives in the form of direct and indirect tax relief for manufacturing of EVs, parts manufacturing and ecosystem development such as charging infrastructure,” Mohamed Azmin added.

Among incentives for OEMs here include pioneer status, the investment tax allowance, as well as import and excise duty exemption, he said.

Among EV-related investments in Malaysia is the RM4.3 billion investment by South Korea’s SK Nexilis to set up a facility at the Kota Kinabalu Industrial Park (KKIP) to manufacture electro-deposited copper foil for EV batteries.

Meanwhile, neighbouring Indonesia is set to witness an initial US$1.2 billion (about RM5.02 billion) investment by a consortium led by South Korea’s LG Group to develop the first EV battery manufacturing facility in the South East Asian country by 2023.

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Surin Murugiah