Malaysia open doors to EEV manufacturers

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The road to making Malaysia a regional automotive hub for energy efficient vehicles (EEV) will be kicked off by giving out manufacturing licences for EEVs without any restrictions, a one up on markets such as Thailand and Indonesia that has restrictions on investment and production units for eco cars.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the government hopes to approve three to four manufacturing licenses for EEVs by 2018.

Manufacturing licenses for vehicles with a capacity of 1.8 litres and below were previously frozen.

EEV is defined as vehicles that meet a set of specifications in terms of carbon emission level and fuel consumption. EEV includes fuel-efficient vehicles, hybrid, electric vehicle and alternatively fuelled vehicles such as compressed natural gas (CNG), liquefied petroleum gas (LPG), biodiesel, ethanol, hydrogen and fuel cell.

Based on this vision, about 85% of vehicles produced in Malaysia in 2020 will be EEVs.

Mustapa said there will be no conditions on investment, equity, minimum production units whatsoever and grants and soft loans to the tune of RM2 billion will be given out for EEVs.

The NAP 2014 will also provide customised incentives for both foreign direct investment and domestic direct investment such as pioneer status and investment tax allowance; grants for research and development and training; infrastructure facilitation; lower taxes and expatriates.

For safety, there will be gradual compliance to Whole Vehicle Type Approval.

Meanwhile, the exemption of excise duties and import taxes for hybrids and electric vehicles (EV) will be extended for models that are assembled in Malaysia. The exemption will be extended until Dec 31, 2015 for hybrids and Dec 31, 2017 for EV.

Beyond these dates, the exemptions will be determined based on the strategic value of these CKD assembly investments.
Mustapa said the import and excise duties on CBU hybrid and electric vehicles will be discontinued.

“Although hybrid and EVs are good for the country in terms of carbon emission, in terms of linkages to the local economy, it does not bring too many benefits, because there is no local production and local assembly,” he said.

For now, EEV implementation will be based on standard fuel that is more efficient, while standard for carbon emission will be used when the Euro 4M petrol and diesel is introduced.

A thorough study on the implementation of Euro 4M is being conducted in consultation with industry players and related government agencies.

The move to make Malaysia an EEV hub encompasses strategies and measures to strengthen the entire value chain of the automotive industry and will also lead to environment conservation, high-income job creation, transfer of technology and create new economic opportunities for local companies.

Source : The Sun Daily | January 21, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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