KUALA LUMPUR, 9 September 2025 — Malaysia’s Ministry of Investment, Trade and Industry (MITI) is finalizing a New Customized Incentive Mechanism (NCM) aimed at revamping the nation’s automotive sector through a clearer, fairer, and more transparent incentives structure—signaling a significant upgrade from the previous system.
At the launch of Chery’s iCAUR 03 SUV, MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz outlined the government’s strategy to align its automotive policies with global trends, especially in electric vehicle (EV) adoption and e-charging infrastructure. According to the minister:
“These measures, together with efforts to strengthen Malaysia’s e-charging infrastructure, are aimed at keeping policies aligned with global mobility trends and building the ecosystem needed to boost consumer confidence in electric vehicles.”
A Record-Setting Industry Seeks Sustainable Growth
In 2024, Malaysia’s automotive output broke records, with 816,747 vehicles sold, surpassing the 800,000-unit benchmark for the first time. While 2025 volumes are expected to moderate—with projections holding steady around 780,000 units—MITI’s renewed focus is on raising standards, not just numbers. The strategy revolves around promoting advanced powertrains, modern safety, and high-tech features in locally assembled vehicles.
Mid-Term National Automotive Policy (NAP) Review Underway
In tandem with the NCM announcement, MITI and the Malaysia Automotive Robotics and IoT Institute (MARii) are conducting a mid-term review of the National Automotive Policy 2020 (NAP). The audit seeks to recalibrate strategies to accelerate Malaysia’s green transition, reduce petrol dependency, and expand component exports. The revision underscores the nation’s goal to stay ahead of emerging mobility megatrends.
Aims Anchored by ASEAN Leadership Role
As ASEAN Chair in 2025, Malaysia is stepping up efforts to fortify regional automotive supply chains, expand EV infrastructure across borders, and promote joint R&D for next-generation technologies. Tengku Zafrul emphasized that the nation is positioning itself as a regional hub for innovation and production, where vehicles manufactured in Malaysia can serve the broader Asian market, powered by Malaysian ingenuity in green mobility.
The minister also highlighted that investors like Chery are crucial to accelerating technological change in the country’s automotive ecosystem. “We are determined to deliver tangible outcomes through stable and consistent policies,” he noted, recognizing the importance of policy credibility in maintaining investor trust and commitment.
