In line with the low carbon mobility goals and green mobility program outlined in Malaysia’s 12th Plan (RMK-12), initiatives to strengthen the local electric vehicle (EV) industry and green technology ecosystems are expected to be announced in the next 2022 budget., Bernama reports.
This has been welcomed by members of the local auto industry, who say the move is timely. According to Erik Winter, Managing Director of Volkswagen Passenger Cars Malaysia (VPCM), the government’s ambition to improve electric mobility is a crucial step for the country to become a low-carbon nation, and change is already happening. on a global scale where electric vehicles are rapidly becoming the norm.
“Malaysia should not lose the opportunities that electric vehicles can bring, so we hope the government will allocate funds in budget 2022 to develop an electric mobility roadmap for Malaysia. We need to consider creating a holistic ecosystem for electric vehicles, expanding an appropriate infrastructure, introducing tax incentives for businesses and customers, and more. At VPCM, we are always ready to support government with ideas and industry knowledge where needed, ”he told the national news agency.
Meanwhile, Honda Malaysia president and chief operating officer Sarly Adle Sarkum said the company is eagerly awaiting developments. “We appreciate that the government encourages various green technology policies and incentives to promote green technologies among automotive industry players,” he said.
In RMK-12, the government stated that the use of green vehicles will be encouraged to help transition users to cleaner mobility. To this end, it will examine the incentives given to manufacturers based in the country for the production of these vehicles, as well as their purchase by customers.
Earlier this month, Minister of International Trade and Industry Datuk Seri Azmin Ali said various strategies would be used to promote electric vehicles in the country, covering aspects of production, sales and production. development of a recharging infrastructure, within the framework of a global, clear and coherent policy. .
He said the National Automobile Policy Update (NAP 2020) will highlight specific initiatives to strengthen the electric vehicle ecosystem, such as critical parts manufacturing, standard setting and encouragement of research and development, marketing and innovation to develop local technologies.
Incentives will take the form of direct and indirect tax breaks for the manufacture of electric vehicles, the manufacture of spare parts and the development of ecosystems such as charging infrastructure, and the incentives for OEMs include pioneer status, a tax deduction for investment as well as exemption from import and excise duties for electric vehicles. Users are also expected to benefit from full road tax exemption as well as income tax relief for the purchase of electric vehicles as well as for the installation of electric vehicle chargers.