Kuala lumpur: 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 stated that the initiative would enhance automotive investments through a clearer tax framework, fairer incentives, and stronger ecosystem development.
According to BERNAMA News Agency, these measures, alongside efforts to strengthen Malaysia's e-charging infrastructure, aim to align policies with global mobility trends and build the ecosystem needed to boost consumer confidence in electric vehicles (EVs). During his keynote address at the official launch of Chery's iCAUR 03 SUV, Tengku Zafrul highlighted that Malaysia's automotive industry achieved an all-time high of 816,747 units sold in 2024, surpassing the 800,000 threshold for the first time. Although 2025 figures are expected to normalize in terms of total industry volume, the Malaysian Automotive Association projects sales to remain steady at 780,000 vehicles.
He emphasized that the government's focus extends beyond volume to 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 mentioned that MITI and the Malaysia Automotive Robotics and IoT Institute (MARii) are conducting a mid-term review of the National Automotive Policy (NAP) 2020 to adapt to the rapidly changing global automotive landscape and other key industry factors. The NAP review will broadly cover areas such as reducing petrol dependency and expanding component exports to ensure Malaysia remains ahead of mobility megatrends.
As ASEAN Chair in 2025, Malaysia is committed to strengthening automotive supply chains, promoting cross-border EV infrastructure, and encouraging joint R and D in next-generation technologies. Malaysia is positioning itself as a regional hub for innovation and production, serving the entire ASEAN and Asian region, where Malaysian talent contributes to breakthroughs in green mobility. Investors like Chery are pivotal in accelerating technological advancement in Malaysia's automotive industry, and the government is determined to deliver tangible outcomes through stable and consistent policies. Investors need to have confidence and trust not just in policy direction, but also in execution.
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.