Customized Incentives

The National Automotive Policy (NAP) provides Customized Incentives (CI) to attract strategic investments into Malaysia specifically in EEV and NxGV, to further develop the overall ecosystem in the local automotive industry. The decision made by the Government on incentives provided are dependent on the level of strategic activities such as Completely Knocked Down (CKD) investments, production volume, technology transfer, research and development activities, supply chain development, employment, exports programme and other factors.

The quantum of the incentive given is subject to the Cost Benefit Analysis (CBA) and the recommendation by the Automotive Business Development Committee (ABDC), a strategic committee.

Chaired by the Ministry of Investment, Trade and Industry (MITI). Representatives from;-

i) Ministry of Finance (MOF)
ii) Royal Malaysian Customs Department (RMCD)
iii) Malaysia Automotive Robotics and IoT Institute (MARii)
iv) Malaysian Investment Development Authority (MIDA)

The CI refers to incentives that enable a higher multiplier than the standard Industrial Linkage Program (ILP) ratio (greater than ratio 1:1) that results in higher import, excise duty, and sales tax reduction by taking into account potential benefits to the country i.e. new investment, employment, technology. The CI also may consider the duties reduction percentage of vehicles subject to the strategic business plan of respective companies and ABDC discussion.

The purpose of this document is to define the procedure and requirements for Customised Incentives (CI) application through the evaluation of Cost Benefit Analysis (CBA). This procedure shall serve as a guide for applicants with regard to their request for tax exemption such as excise duty, import duty, or sales tax. SOP Document Downloadable

1. MARii CBA Template 2021 – CBU 2. MARii CBA Template 2021 (28102021) – Direct ED Reduction_2W 3. MARii CBA Template 2021 (28102021) – Direct ED Reduction_PV 4. MARii CBA Template 2021 (28102021) – ILP Ratio_2W 5. MARii CBA Template 2021 (28102021) – ILP Ratio_PV

Investment Guideline Downloadable

For further information on the programme kindly
email to cba@marii.my