Malaysian Govt To Create Special Tax Incentive For NAC Companies

TANJUNG MALIM (Perak, Malaysia), Feb 3 (Bernama) -- The Malaysian government plans to create a special tax incentive for automotive vendors investing in the newly-launched National Automotive Cluster @ Proton City (NAC), says the International Trade and Industry Ministry (MITI). Second MITI Minister, Ong Ka Chuan said, while it is still at an early stage, this special tax incentive is definitely in the pipeline. "We are currently drawing up some guidelines for it," he told a press conference after Prime Minister Najib Tun Razak launched the NAC here Saturday. He said with this development in place, Tanjung Malim had the potential to generate RM24 billion (US$1 = RM3.89) in economic activities, besides giving a new direction for local automotive players in terms of exploring new markets. DRB-Hicom Bhd Group Managing Director, Syed Faisal Albar said Proton City belonged to the group and the area had been earmarked for an automotive hub since the mid-1990s. "The group's confidence in developing Proton City comes with the renewed vigour of the national carmaker, given its strategic partnership with Zhejiang Geely Holding Group. "A lot of it (the NAC) is still at a conceptual basis and we are drawing up what needs to be done. The key is to look for investors and we are currently discussing with a few potential investors, both international and local," he added. Syed Faisal said the Geely partnership would give the group access to the latest home-grown technology and models, and also allow the Proton brand to have exclusivity in the ASEAN right-hand drive markets. The ASEAN car market is very large, with more than three million cars sold annually. He said with the larger ASEAN market, DRB-Hicom was now confident that Proton could turn the corner, and once fully developed, the NAC would augur well in its plans to export Proton cars regionally and globally. The NAC, 386.6 hectares in size, would feature dedicated areas for specific segments of the industry, such as hubs for green technology, electric cars and other tech components of a modern automobile, as well as a road system that would double-up as a test track for Proton. Commenting on the Proton-Geely SUV, Syed Faisal said the launch was on track for year-end. -- BERNAMA