Incentives for the Automotive Industry

Promoting the assembly and manufacturing of Energy Efficient Vehicles and its critical components/systems is crucial to enhance the development of Malaysia’s automotive industry.

MIDA provides incentives in the form of income tax exemption or income tax exemption equivalent of Investment Tax Allowance (ITA) for a period of five or ten years to companies which have plans to undertake the following activities,

i. Assembly of Energy Efficient Vehicles;

ii. Manufacturing of Critical Components/Systems for Energy Efficient Vehicles or Non-Energy Efficient Vehicles such as transmission, engines, airbag & components, handling & control mechanism and brake mechanism; and

iii. Manufacturing of components for Hybrid and Electric Vehicles such as electric motors, electric batteries and battery management systems.