Kuala lumpur: The government will introduce an essential list and localisation incentives aimed at strengthening the domestic automotive supply chain and expanding export opportunities to support local vendors, announced Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He emphasized that these measures are part of a broader strategy to enhance the local automotive industry and encourage the development of Malaysia's electric vehicle (EV) manufacturing ecosystem.
According to BERNAMA News Agency, Tengku Zafrul revealed that the existing fully built-up EV tax exemption framework, which is scheduled to continue until December 31, 2025, will be aligned with a broader push for local assembly operations and parts localisation. This strategic shift is intended to boost industrial participation and enhance Malaysia's competitiveness within the regional supply chain. Highlighting the progress of national champions, he noted that Perodua's EV programme is on track, while Proton recently launched the e.MAS 5, underscoring the industry's capability and ambition.
Tengku Zafrul further highlighted the significance of the automotive sector as one of Malaysia's most crucial industrial pillars. He pointed out that Malaysia secured the number one vehicle market position in Southeast Asia during the first half of 2025, surpassing its regional peers. With a strong semiconductor base, abundant rare earth resources, and a mature manufacturing ecosystem, Malaysia is poised to seize future mobility opportunities.
The inaugural Global Automotive Technology Expo (GATE) 2025, organized by the Malaysia Automotive, Robotics and IoT Institute (MARii) and Derrisen Sdn Bhd, is a testament to Malaysia's commitment to shaping the future of mobility in the region. The event brings together global original equipment manufacturers, suppliers, and technology innovators, reinforcing Malaysia's leadership in AI-driven automotive technologies and sustainable smart mobility for ASEAN.
Tengku Zafrul emphasized that GATE 2025 aligns seamlessly with the government's industrial transformation agenda under the Malaysia MADANI framework. Events like GATE are pivotal in strengthening Malaysia's position as a hub for advanced manufacturing and sustainable mobility, supporting the nation's commitment to building a resilient, inclusive, and future-ready economy. The momentum seen at GATE 2025 reflects the strength and determination of Malaysia's industrial ecosystem, he added.