KUALA LUMPUR (Oct 19): Approved permits (APs) for imported completely built-up (CBU) cars remain relevant and essential for protecting and supporting the development of the national automotive industry, said Minister of Investment, Trade, and Industry Tengku Datuk Seri Zafrul Abdul Aziz.

He explained that the primary purpose of the government's use of APs to import cars, including electric vehicles, is to monitor and support the automotive industry in Malaysia. This aligns with the goals outlined in the National Automotive Policy 2020, which aims to establish Malaysia as a regional production hub for energy-efficient vehicles.

Zafrul also emphasised that APs serve as a mechanism for collecting data and information to regulate and enhance policies, as well as for updating guidelines related to the development of the automotive industry.

"The AP mechanism also promotes inclusive growth within the automotive industry, such as encouraging the involvement of Bumiputera entrepreneurs in the automotive supply chain," Zafrul said during an oral question-and-answer session in Dewan Rakyat on Thursday.

He was responding to a question from Kepong MP Lim Lip Eng, who enquired about the government's hesitancy to abolish APs, excise taxes and import duties on electric vehicles to address air pollution issues in Malaysia.

Zafrul said that abolishing APs for imported CBU cars would risk non-standard vehicles being dumped in Malaysia, posing risks to users. However, new or used CBU cars can still be imported through the existing AP mechanism, subject to rules and regulations set by the Ministry of Investment, Trade, and Industry (Miti), including Bumiputera equity and minimum paid-up capital requirements.

He also noted that in line with the government's efforts to achieve net-zero carbon emissions by 2050, the New Industry Master Plan (NIMP) 2030 has identified electric vehicles as the primary catalyst for a green economy.

"Therefore, the government announced in the revised Budget 2023 that a 100% import duty and excise tax on the importation of CBU electric vehicles, including commercial vehicles and motorcycles, will be extended until 2025. Locally assembled electric vehicles will see an extension to 2027," he said.

He also mentioned that from 2011 to September 2023, over 12,000 electric vehicles have been registered in Malaysia, with 3,400 in 2022 alone and 7,500 up to September 2023.

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