PETALING JAYA: DRB-Hicom Bhd
expects the tax incentive for automotive vendors relocating to the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak, to encourage investment and strengthen the local automotive supply chain.
Under Budget 2027, wholly Malaysian-owned automotive vendors relocating their operations to AHTV will be eligible for a tax deduction of up to RM5mil on qualifying relocation expenses incurred between Jan 1, 2027, and Dec 31, 2030.
In a statement, DRB-HICOM group managing director Tan Sri Syed Faisal Albar said the incentive would help reduce relocation costs and encourage more Malaysian automotive vendors to establish operations in Tanjong Malim.
“A stronger vendor presence will deepen local supply chains, support the development of next-generation mobility and enhance Malaysia’s attractiveness as a destination for automotive investment.
“The wider emphasis on technology, talent development, electric vehicle infrastructure and industrial capability building further strengthens this ambition. Measures supporting EV charging infrastructure, TVET and productivity enhancement will help create a stronger ecosystem for AHTV to realise its full potential as a regional automotive hub,” he said.
AHTV is being developed by AHTV Alliance Sdn Bhd, a joint venture between DRB-HICOM and China's Zhejiang Geely Holding Group Co Ltd.
The development will include research and development facilities, automotive manufacturing clusters, logistics services, training institutions and supporting infrastructure.
