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.