The Investment, Trade and Industry Ministry (MITI) is targeting to roll out a simplified automotive incentive framework next year to boost the localisation of critical components.
Its minister, Datuk Seri Johari Abdul Ghani, said the ministry was currently engaging with various government agencies, foreign investors and stakeholders to iron out the details of the new customised incentive mechanism (NCM).
"If possible, we are targeting to implement it next year but let me finalise it," he said after launching MCE Auto Hub today at the UMW High Value Manufacturing Park in Serendah, Rawang, Selangor.
Johari said the government welcomed foreign automotive brands to establish their assembly operations in Malaysia, promising attractive incentive packages.
"At the same time, investors should reciprocate with a commitment to build up the component industries that benefit locals," he said.
He added that the simplified NCM aimed to encourage the local sourcing of critical technologies rather than just basic manufacturing components.
"The greatest value in tomorrow's automotive industry lies in critical components such as design and engineering, software, electronics, battery technologies, advanced driver assistance systems (ADAS) and intelligent mobility solutions," added Johari.
The MCE Auto Hub, a RM50mil advanced manufacturing facility, is set to bolster the group's design, engineering, and research and development (R&D) capabilities.
