CUSTOMISED INCENTIVES (CI)

INTRODUCTION

Introduction of Customised Incentives:The National Automotive Policy (NAP) provides CI to attract strategic investments into Malaysia specifically on EEV and NxGV, as 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). The ABDC is a strategic committee chaired by the Ministry of International Trade and Industry (MITI) and comprises representatives from Ministry of Finance (MOF), Royal Malaysian Customs Department (RMCD), Malaysia Automotive Robotics and IoT Institute (MARii), and Malaysian Investment Development Authority (MIDA). The frequency of meetings held by the ABDC will be twice a month or whenever necessary to discuss and conduct comprehensive evaluation on the incentives application from companies, alongside other matters related to the Malaysian automotive development.

The CI refers to incentives that enable 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 of potential benefits to the country i.e. new investment, employment, technology. The CI also may consider duties reduction percentage of vehicle subject to strategic business plan of respective companies and ABDC discussion.

SOP FOR CBA

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 serves 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

CBA TEMPLATE

• MARii CBA Template 2021 – CBU
• MARii CBA Template 2021 (28102021) – Direct ED Reduction_2W
• MARii CBA Template 2021 (28102021) – Direct ED Reduction_PV
• MARii CBA Template 2021 (28102021) – ILP Ratio_2W
• MARii CBA Template 2021 (28102021) – ILP Ratio_PV

INVESTMENT GUIDELINE

• Investment Guideline Downloadable

CONTACT US

Malaysia Automotive, Robotics and IoT Institute (MARii) 
MARii website : www.marii.my 
Tel : (603) 8318-7742 
Fax : (603) 8318-7743  
Email : cba@marii.my