AP System To Stay - Safeguard Buyers From Substandard Electric Vehicles!

It is deemed essential to retain Malaysia's vehicle import approval permit (AP) system for motor vehicles since it places a significant emphasis on fostering the expansion of the domestic automotive industry in line with the goals stated in the National Automotive Policy 2020.

Another important factor to restrict the flow of completely built-up (CBU) vehicle imports, which includes electric vehicles (EVs) that might not meet the safety standards imposed for road users. The Minister of Investment, Trade, and Industry, Datuk Seri Tengku Zafrul Abdul Aziz, emphasised the continued significance of issuing APs for CBU imports at a recent Dewan Rakyat meeting when queried by Lim Lip Eng (DAP-Kepong).

The AP system serves as a tool for data collection, which in turn aids in the regulation and improvement of current norms and regulations for the expansion of Malaysia's automotive industry. All imported CBU vehicles, regardless of age, through the AP system would be guaranteed to adhere to the requirements set by the Ministry of Investment, Trade, and Industry (MITI).

With regards to the measures taken by the government to maintain the issuance of import APs and tax exemptions, such as excise duty and import taxes, for all types of EVs, including motorcycles and commercial vehicles, Tengku Zafrul clarified that the excise duty and import tax exemptions, as announced in the 2023 budget, apply to all categories of EVs, including commercial vehicles and motorcycles.

The government will keep providing tax exemption for EVs until 2025, when they are imported as CBUs, and until 2027, when they are locally manufactured and fully knocked down (CKD). A full sales tax exemption is also available to CKD EVs until 2027.

Tengku Zafrul further added that between September 2011 and September 2023, 12,000 units of EV were registered in Malaysia, showing a considerable rise in the market share of EVs. This statistic pertains to battery-electric vehicles (BEVs), which include various types of commercial vehicles and motorcycles. Notably, 3,000 EVs were registered in 2022, and by September 2023, that number had grown to 7,500, a significant rise from the annual average of 300 units in the years prior.

Source: MALAYMAIL