Posted on 21 Jun 2022
Malaysia is boosting its incentives to attract foreign investment with a plan to become an electric vehicle hub, including company tax exemption.
Investment director of the Consulate General of Malaysia in Guangzhou, Muhammad Sawaddee Islamuddin, recently told China Battery Enterprise Alliance his government is expanding goals and policies around transportation electrification.
“Several global institutions have ranked Malaysia as one of the most investment friendly countries. In order to promote and encourage investors to construct and develop their businesses through Malaysia, the government has carried out supporting policies,” says Mr Islamuddin. “For companies in the electric vehicle industry, incentive measures such as the company tax exemption policies can be applied. This kind of policy covers areas such as electric motors, battery management systems and rechargeable batteries, and can be applied for five to ten years.”
The official adds the manufacturing industry in Malaysia “has already been liberalised” and foreign investors can operate and have 100% ownership of companies, Kallanish notes.
The aim of Malaysia’s current strategy of strengthening the automotive industry during the “digital industrial transformation era of year 2020 to 2030” is to make the country a leader in manufacturing, engineering and technology fields, based on the National Automotive Policy 2020, which was launched in February 2020.
The Southeast Asia country seeks to increase exports of automobiles, automotive components and parts, and related aftersales products, as well as turn Malaysia a regional automotive centre for the European Economic Area and a regional production centre for the next-generation automotive production.
Source:Kallanish
