Incentives must benefit entire automotive supply chain


Proton's e.Mas 7 electric vehicles at the company's plant in Tanjung Malim, Perak - Bloomberg

KUALA LUMPUR: Incentives for investments in the national automotive industry should create a multiplier effect, driving growth across the entire supply chain and supporting vendor development, says the Proton Vendors Association (PVA).

Hence, the PVA said it fully supported the Investment, Trade and Industry Ministry in its efforts to safeguard and strengthen Malaysia’s automotive ecosystem.

“While Malaysia continues to welcome foreign investments, it is important to recognise that automotive companies operating here benefit from various incentives and a well-established industrial base.

“In return, such investment incentives must deliver broader value to the nation beyond immediate commercial gains,” the association said in a statement yesterday.

The PVA said incentives channelled to carmakers should also support the development of Tier 1, Tier 2 and Tier 3 vendors.

“This approach ensures long-term sustainability, strengthens local capabilities and reinforces Malaysia’s position as a competitive and resilient automotive hub,” it added. — Bernama

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