MITI to hold more ABDC meetings

KUALA LUMPUR, Jan 24 (Bernama) -- The Ministry of International Trade and Industry (MITI) will increase the number of Automotive Business Development Committee (ABDC) meetings to twice a month from the current monthly meeting.

Deputy Minister Dr Ong Kian Ming said the increase in the meeting’s frequency which had been agreed by the Malaysian Automotive Association (MAA) president Datuk Aisah Ahmad, will improve ABDC-related processes.

“The dates of the meetings have been decided and it will be shared with MAA members to reduce the turnaround time of applications processing.

“The meetings will go through different Industrial Linkage Programmes (ILPs) and related tax incentives,” he said in a media briefing which addressed issues relating to automotive incentive applications here today.

The ILP is an incentive programme that seeks to encourage local original equipment manufacturers (OEMs) to procure locally-produced parts and components, and build the capacity of local suppliers.

Ong said meeting would continue the process of inviting MAA members to provide additional information when necessary on the approval of relevant ILPs for certain OEMs manufacturers.

He also said MITI would enhance the client charter for MAA members to provide greater transparency and understanding within the context of ABDC, and continue its engagement with stakeholders.

In regards to the cost benefit analysis (CBA) for the energy efficient vehicles customised incentives that is undertaken by the Malaysia Automotive, Robotics and IOT Institute (MARii), Ong said the issues raised by industry players on the complicated application process would be reviewed and made more transparent.

“MARii will also look into the many areas in CBA that require greater details and take into account new developments in the car manufacturing and automotive sector.

“This is important because if the details are not clear to industry players, it can result in a delay to the approval process within the ABDC, which we are hoping speed up,” said Ong.

Meanwhile, Aishah welcomed MITI’s decision and hoped the initiatives taken would also help speed up industry players’ request for incentives in order to get pricing approvals.

“This was among the issue that we faced last year...waiting for many models to get approvals.

“By having higher frequency meetings, we hope our members will be informed and have more clarity on the CBA,” she said.

The recommendations made by ABDC are used by the Ministry of Finance (MOF) to decide on the amount of excise duty reduction to be extended to vehicle companies.

Members of the ABDC consist of representatives from MITI, MOF, Malaysian Investment Development Authority (MIDA), MARii and the Customs Department.

-- BERNAMA