KUALA LUMPUR, Nov 13 (Bernama) -- The government will introduce the essential list and localisation incentives to strengthen the domestic automotive supply chain and expand export opportunities to support local vendors, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said that to encourage the development of Malaysia’s electric vehicle (EV) manufacturing ecosystem, the existing fully built up EV tax exemption framework currently scheduled to run until Dec 31, 2025 is being aligned with a broader push for local assembly operations and parts localisation.
“The strategic shift aimed to strengthen industrial participation and enhance Malaysia’s competitiveness within the regional supply chain.
“Our national champions are making strong progress as Perodua’s EV programme is on track, while Proton recently launched the e.MAS 5, giving a clear signal of our industry’s capability and ambition,” he said during the opening of the inaugural Global Automotive Technology Expo (GATE) 2025 today.
Tengku Zafrul highlighted that the automotive sector is one of Malaysia's most important industrial pillars.
“In fact, Malaysia held the number one vehicle market position in Southeast Asia during the first half of 2025, ahead of its regional peers.
“Malaysia is ready to capture the opportunities for the future of mobility with a strong semiconductor base, abundant rare earth resources and a mature manufacturing ecosystem,” he added.
Organised by the Malaysia Automotive, Robotics and IoT Institute (MARii) and Derrisen Sdn Bhd, GATE 2025 brings together global original equipment manufacturers, suppliers, and technology innovators under one roof.
With GATE 2025, Malaysia reinforces its leadership in the region’s mobility future, shaping the next wave of innovation in AI-driven automotive technologies and sustainable smart mobility for ASEAN.
Tengku Zafrul emphasised that the vision behind GATE 2025 is fully aligned with the government’s industrial transformation agenda under the Malaysia MADANI framework.
“Through events like GATE, Malaysia is strengthening its position as a hub for advanced manufacturing and sustainable mobility, while supporting our commitment to building an economy that is resilient, inclusive and future-ready.
“The momentum we see at GATE 2025 demonstrates the strength and determination of Malaysia’s industrial ecosystem,” he added.
-- BERNAMA
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