DRB-Hicom Welcomes RM5 Mln Tax Deduction Incentive For AHTV Under Budget 2027

KUALA LUMPUR, Oct 9 (Bernama) -- DRB-HICOM Bhd says the tax deduction of up to RM5 million for Malaysian automotive vendors relocating to the Automotive Hi-Tech Valley (AHTV) in Tanjong Malim, Perak, will accelerate the development of the automotive hub and strengthen Malaysia’s position as a regional automotive investment destination.

Under Budget 2027, wholly Malaysian-owned automotive vendor companies that relocate their operations to AHTV will be eligible for a tax deduction of up to RM5 million on qualifying relocation expenses incurred between Jan 1, 2027 and Dec 31, 2030.

DRB-HICOM group managing director Tan Sri Syed Faisal Albar said the incentive represented another important step towards realising AHTV’s long-term ambition of becoming a hub for next-generation vehicles and energy-efficient vehicles.

“By helping to reduce relocation costs, it will encourage more Malaysian automotive vendors to establish operations in Tanjong Malim and accelerate the growth of the automotive ecosystem within AHTV.

“A stronger vendor presence will deepen local supply chains, support the development of next-generation mobility and enhance Malaysia’s attractiveness as a destination for automotive investment,” he said in a statement.

He said the broader emphasis on technology, talent development, electric vehicle (EV) infrastructure and industrial capability building would further strengthen AHTV’s development.

Syed Faisal added that measures to support EV charging infrastructure, technical and vocational education and training (TVET), and productivity enhancement would help create a stronger ecosystem for AHTV to realise its full potential as a regional automotive hub.

-- BERNAMA