The decision-making process, which is undertaken by the Automotive Business Development Committee (ABDC), should be transparent, fair and comprehensive, it said in a statement today.

The statement was in response to a news report in which the Malaysian Automotive Association (MAA) slammed the government over its inability to make decisions on tax incentives for qualified locally-assembled vehicles, causing a delay in approving pricing for new car models.

The ABDC, which was set up in 2006, comprises representatives from Miti, the finance ministry, Malaysia Investment Development Authority, Malaysia Automotive, Robotic and IOT Institute and the Royal Malaysian Customs Department.

It was established to facilitate collective decision-making process in determining the quantum of incentives to be extended to vehicle companies.

Miti said under the previous administration, some vehicle companies had obtained the incentives directly from the finance ministry, bypassing the ABDC.

“Many of the applications were approved without comprehensive evaluation to determine the return of investment to the government,” it said.

The ministry said it would always strive to ensure public funds and taxpayers’ money are utilised optimally for the people’s benefit.

“In this regard, Miti invites the MAA and industry players to have further consultations on this issue and to collectively address grievances in order to facilitate the growth of the automotive industry,” it added.