Industry Leader Praises Revised Malaysia Auto Policy

A Malaysian auto industry official says the government’s revised National Automotive Policy will promote local assembly, particularly of energy-efficient vehicles.

Malaysia Automotive Institute CEO Madani Sahari says the revamped policy will see manufacturing licenses and pre-packaged customized incentives given for production of and investment in energy-efficient vehicles.

A vehicle will be classified as energy-efficient if it meets or performs better than a set fuel-consumption figure for its curb weight and, unlike the current 2.0L cap for a hybrid-vehicle-tax exemption that expires Dec. 31, there will be no engine-size restrictions, Madani says in a statement.

This has been approved, and a table of vehicle curb weights and their corresponding fuel-economy figures required for energy-efficient status has been drawn up.

The country’s Road Transport Dept. will measure the vehicles’ fuel consumption against the New European Driving Cycle and U.N. Economic Commission for Europe standards.

Madani says the private sector will be encouraged to establish testing facilities in Malaysia.

Meeting with members of the media, Madani also says that of all the factors influencing car prices in Malaysia, only import, excise and sales taxes are within government control. But liberalization through free-trade agreements could increase market competition and, in turn, lower new-car prices, he says.

“The final (retail) prices of cars are determined by market forces and fixed by the manufacturers,” he says. “The government has no say as far as the final price is concerned.”