Tanjong Malim:DRB-HICOM Bhd has announced that a tax deduction incentive of up to RM5 million for Malaysian automotive vendors relocating to the Automotive Hi-Tech Valley (AHTV) will accelerate the development of the automotive hub in Tanjong Malim, Perak. The initiative, part of Budget 2027, aims to strengthen Malaysia's position as a key regional automotive investment destination.

According to BERNAMA News Agency, the tax deduction applies to qualifying relocation expenses incurred between January 1, 2027, and December 31, 2030, for wholly Malaysian-owned automotive vendor companies moving their operations to AHTV.

DRB-HICOM group managing director Tan Sri Syed Faisal Albar highlighted that the incentive is crucial for advancing AHTV's ambition to become a center for next-generation and energy-efficient vehicles. He stated that by reducing relocation costs, the initiative would encourage more vendors to set up operations in Tanjong Malim, thereby fostering the growth of the local automotive ecosystem.

A stronger vendor presence in AHTV is expected to deepen local supply chains, support the development of next-generation mobility, and enhance Malaysia's appeal as an automotive investment hub. Syed Faisal also emphasized that the focus on technology, talent development, electric vehicle infrastructure, and industrial capability building would further bolster AHTV's growth.

Additionally, measures supporting EV charging infrastructure, technical and vocational education and training (TVET), and productivity enhancement are anticipated to help AHTV realize its potential as a regional automotive hub.