Malaysia introduces new auto policy to attract foreign makers

Malaysia introduces new auto policy to attract foreign makers

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The country of Malaysia announced a new auto policy on Monday, January 20, 2014. The new auto policy of the country means that Malaysia will be offering incentives, as well as easing curbs on the production of small and energy-efficient cars in order to attract investment opportunities with neighboring rivals Thailand and Indonesia.

auto policy

Mustapa Mohamad, the Trade Minister said that new manufacturing licenses will be issued to those car manufacturers which produce green vehicles. This is a massive change in policy as the Malaysian government earlier only issued new manufacturing licenses for those vehicles which featured the engine size of 1.8 liters and above in order to protect the two car makers of the nation ?- Proton and Perodua.

The trade minister went on to say that new policy is looking to increase total industry production to 1.25 million vehicles and exports to 250,000 vehicles in the next 6 years, by 2020. The vehicle production in Malaysia stood at 570,000 units in 2013 and the exports stood at 20,000 units. Thailand makes more than 2 million vehicles on a yearly basis and the annual production of Indonesia exceeds 1 million.

The country of Malaysia is trying its best to catch up with the neighboring countries. Mohamad added that manufacturers will be offered incentives, including tax rebates and grants based on their investment.

Photo Credits: Washington Post