According to a report by Harian Metro, the Melaka state government has received a proposal from an international company based in China interested in setting up an electric vehicle (EV) assembly plant in the country. This was revealed by the Datuk Seri Ab Rauf Yusoh, who is the chairman of the industry, investment and entrepreneur development committee in the Melaka state executive council (exco).
“The company’s representative has contacted me recently and expressed the intention. At the state government level, I will first study the proposal with the Melaka State Development Corporation (PKNM), including selecting a suitable location to set up the EV assembly plant,” said Ab Rauf.
“Basically, we have no obstacles, but it requires careful discussions with all relevant agencies on matters like the location as well as the economic impact on the state and the rakyat as a whole,” he added.
Ab Rauf also stated that beginning from next year, the state government, through PKNM, will prioritise the automotive industry, which is considered as one of the largest industries to be brought into the state.
He also mentioned Honda’s assembly plant in Pegoh, Alor Gajah, which had succeeded in proving its operational capability, as proof that the state is a good location for local vehicle assembly in Malaysia.
In late October, initiatives to promote the EV industry here were presented during the tabling of Budget 2022 (Bajet 2022). Among the measures mentioned include 100% import and excise duty exemption on fully-imported (CBU) EVs, while locally-assembled (CKD) EVs will benefit from 100% excise and sales tax exemption. Meanwhile, components used to assembly EVs here will also be exempted from import duty.
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