Despite last year’s election manifesto promise, and persistent calls for a reduction in Malaysia’s high car prices, the International Trade and Industry Minister has confirmed that the Government has no plans to reduce vehicle excise duties at the present time.
Recently the Minister’s comments came as he unveiled the new National Automotive Policy (NAP) 2014 that, it is planned, will promote the required increased domestic production, particularly of energy-efficient vehicles (EEVs). The NAP will, with immediate effect, allow foreign automotive companies to build smaller cars with engines of 1.8 litres or less, in an effort to make Malaysia into an EEV productive hub.
The Minister confirmed that EEV production projects led by foreign producers will not need domestic investment partners, and they will be provided with the necessary incentives, such as specific excise duty and import tax reductions or exemptions for fixed periods.
