New Customised Incentive Mechanism Set To Support Investments In Malaysia’s Automotive Sector - MITI

KUALA LUMPUR, Sept 9 (Bernama) --  The Ministry of Investment, Trade and Industry (MITI) is finalising the New Customised Incentive Mechanism (NCM), aimed at providing a more transparent and attractive tax and incentive structure to strengthen Malaysia’s automotive industry.

MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz said the initiative would support automotive investments through a clearer tax framework, fairer incentives and stronger ecosystem development.

“These measures, together with efforts to strengthen Malaysia’s e-charging infrastructure, are aimed at keeping policies aligned with global mobility trends and building the ecosystem needed to boost consumer confidence in electric vehicles (EVs),” he said in his keynote address at the official launch of Chery’s iCAUR 03 SUV here tonight.

Tengku Zafrul said the country’s automotive industry recorded an all-time high of 816,747 units sold in 2024, surpassing the 800,000 threshold for the first time. “While 2025 figures are expected to normalise in terms of total industry volume, the Malaysian Automotive Association projects sales to remain steady at 780,000 vehicles,” he noted.

He highlighted that the government’s focus is not only on volume but also on quality, ensuring Malaysians have access to vehicles with advanced powertrains, modern safety features and technology packages that deliver efficiency and reliability.

Speaking on Malaysia’s green transition goals, he said MITI and the Malaysia Automotive Robotics and IoT Institute (MARii) are conducting a mid-term review of the National Automotive Policy (NAP) 2020 to reflect the fast-changing global automotive landscape and other key industry factors. “Broadly, the NAP review will cover areas such as reducing petrol dependency and expanding component exports, to ensure Malaysia stays ahead of mobility megatrends,” he added. 

Tengku Zafrul said as ASEAN Chair in 2025, Malaysia is committed to strengthening automotive supply chains, promoting cross-border EV infrastructure and encouraging joint R&D in next-generation technologies. “We are positioning Malaysia as a regional hub for innovation and production, where vehicles made here can serve the entire ASEAN and Asian region, and where Malaysian talent contributes to breakthroughs in green mobility,” he said.

Tengku Zafrul noted that investors such as Chery play an important role in accelerating technological advancement in Malaysia’s automotive industry and that the government is determined to deliver tangible outcomes through stable and consistent policies. “We understand that investors like Chery need to have confidence and trust not just in our policy direction, but also in our execution,” he said.

The NCM is Malaysia’s upcoming, revamped framework for automotive sector incentives, designed to be transparent and fair, replacing the more opaque Customised Incentives (CI) system.

--BERNAMA