Sunday, November 13, 2005


I wrote this long time back but forgot to put it up on the blog. So here is the framework of the National Automotive Policy of Malaysia.

The Objectives:
1. To promote a competitive and viable automotive sector, in particular he national car manufacturers.
2. To become a regional hub for manufacturing, assembly and distribution for automotive vehicles.
3. To enhance value added and local capabilites in the automotive sector.
4. To promote export-oriented Malaysian manufacturers as well as component and parts vendors.
5. To promote competitive and broad-based Bumiputra participation in vehicle manufacturing, distribution and importation as well as in component and parts manufacturing.


- Reduction in import duties for CBU vehicles. ASEAN countries: from 20% to 15% and Non-ASEAN: From 50% to 30%

- Import duties for CKDs maintained: 0% for vehicles from ASEAN and at 10% on non-ASEAN.

- Reduction in excise duties for passenger cars and 4WDs. The reduction is the highest in passenger cars: 90%-250% to 80%-200%.

- However, Excise duties for MPV/vans to increase.

- Approved Permits (AP) to be phased out in the long term.

This represent a movement in the right direction but maybe a bit too late as other countires like Thailand have already moved way ahead.

However as they say, better late than never.

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