BUDGET 2026: MAA CALLS FOR BALANCED POLICY FRAMEWORK TO SUPPORT EV SEGMENT

KUALA LUMPUR, Oct 11 (Bernama) -- The Malaysian Automotive Association (MAA) has urged the government to consider maintaining a balanced policy framework that continues to support both completely built up (CBU) and completely knocked down (CKD) electric vehicle (EVs) segments.

It said this in view of the expiry of CBU EV incentives.

“(This support) is particularly important during the early stages of Malaysia’s transition towards electrified mobility,” MAA said in a statement today in response to yesterday’s Budget 2026 announcement.

"The EV ecosystem in Malaysia is still in its infancy. Continued incentives for CBU models remain critical in creating consumer awareness, market confidence, and demand readiness.

"All of these are prerequisites for the eventual success of local EV assembly programmes," it said.

According to MAA, the government needs to continue evolving its policies in tandem with rapid technological advancements and global industry developments.

The association said it remains confident that the government continues to take a long-term view in shaping the EV policy landscape.

The fast-changing automotive landscape may require progressive and adaptive policy frameworks to facilitate industrial expansion and the adoption of high technology.

MAA also said introducing the RM4,000 matching grant to encourage owners to dispose of vehicles of more than 20 years is a progressive step toward improving safety, promoting environmental sustainability, and supporting Malaysia’s national car brands.

"In further enhancing the impact of these initiatives, MAA is proposing that the government consider extending the eligibility to include locally assembled CKD models of other automotive brands.

-- BERNAMA