Government introduces essential list and localisation incentives to strengthen domestic automotive supply chain and boost exports for local vendors
KUALA LUMPUR: The government will introduce an essential list and localisation incentives to strengthen Malaysia’s domestic automotive supply chain.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said these measures would expand export opportunities for local vendors.
He announced the initiative during the opening of the inaugural Global Automotive Technology Expo (GATE) 2025 today.
To encourage electric vehicle manufacturing development, existing fully built-up EV tax exemptions are being aligned with local assembly operations.
The tax exemption framework is currently scheduled to run until December 31, 2025.
“This strategic shift aims to strengthen industrial participation and enhance Malaysia’s competitiveness within the regional supply chain,” Tengku Zafrul said.
“Our national champions are making strong progress as Perodua’s EV programme is on track, while Proton recently launched the e.MAS 5.”
He highlighted that the automotive sector remains one of Malaysia’s most important industrial pillars.
Malaysia held the number one vehicle market position in Southeast Asia during the first half of 2025.
The country leads regional peers in automotive market performance.
“Malaysia is ready to capture opportunities for the future of mobility with a strong semiconductor base,” he added.
The country also possesses abundant rare earth resources and a mature manufacturing ecosystem.
GATE 2025 brings together global original equipment manufacturers, suppliers and technology innovators.
The event is organised by MARii and Derrisen Sdn Bhd.
Tengku Zafrul emphasised that GATE 2025 aligns with the government’s industrial transformation agenda under Malaysia MADANI.
“Through events like GATE, Malaysia is strengthening its position as a hub for advanced manufacturing and sustainable mobility,” he said.
The expo reinforces Malaysia’s leadership in shaping ASEAN’s mobility future.
It focuses on AI-driven automotive technologies and sustainable smart mobility innovation.
“The momentum we see at GATE 2025 demonstrates the strength of Malaysia’s industrial ecosystem,” he added. – Bernama
