Pekema Seeks EV Incentives for Bumiputera Firms in Budget 2027

Pekema (Persatuan Pengimport dan Peniaga Kenderaan Melayu Malaysia — the Malay Vehicle Importers and Traders Association of Malaysia) is the industry body representing Bumiputera automotive importers and dealers in Malaysia. Its President, Datuk Mohamed Nazari Noordin, has submitted three formal demands to the federal government for Belanjawan 2027 (Budget 2027): reform of tax and import duty structures, targeted incentives for the transition to electric vehicles (EVs), and financing facilities plus credit guarantees for Bumiputera small and medium enterprises (SMEs) in the automotive sector. The association supports the National Automotive Policy (NAP) but argues that Bumiputera businesses need appropriate assistance to avoid being left behind by the shift from internal combustion engine (ICE) and used-import vehicle trade to the EV ecosystem.

Key Facts

The following table consolidates the core facts, demands, and context from the source material as of the publication date of 19 September 2026.

Why Does Pekema Want Tax and Import Duty Reform in Budget 2027?

Pekema wants reformed tax and import duty structures to create fairer competition in Malaysia's automotive industry, according to president Datuk Mohamed Nazari Noordin. The proposed reforms would also position Malaysia as a more competitive automotive hub in the region while balancing government revenue needs against the survival of Bumiputera importers of used vehicles.

The president stated that the reform is critical for used-import vehicle dealers who are currently facing market changes following the government's focus on local vehicle assembly (CKD). The association has publicly stated its readiness to negotiate with the government on industry challenges.

"Pekema has expressed its readiness to negotiate with the government regarding industry challenges and to find approaches that ensure the transformation of the automotive sector benefits all parties."

— Datuk Mohamed Nazari Noordin, President of Pekema, as reported by Utusan Malaysia via Careta.my, 19 September 2026

Pekema submitted three formal Budget 2027 demands: tax and import duty reform, EV transition incentives, and financing and credit guarantees for Bumiputera automotive SMEs.

What EV Transition Incentives Does Pekema Propose for Bumiputera Businesses?

Pekema proposes incentives for local CKD (completely knocked-down) EV assembly, component manufacturing, charging infrastructure development, and workforce training and certification. The association also suggests grants or tax incentives for EV-technology training, plus assistance in developing 3S showrooms and service centres equipped to handle next-generation vehicles.

Pekema's position is that Bumiputera businesses must not only change the products they sell, but also invest in equipment, worker skills, and service facilities to meet EV technology requirements. The association explicitly supports the National Automotive Policy (NAP) framework but stresses that targeted assistance is required so Bumiputera entrepreneurs are not left behind by the technological transition.

Pekema has proposed CKD EV assembly incentives, component manufacturing support, charging infrastructure development, and workforce training and certification for Bumiputera businesses.

How Would the Proposed Financing Scheme Work for Bumiputera Automotive SMEs?

Pekema requests a special financing scheme with low or flexible interest rates for Bumiputera automotive SMEs, usable for equipment purchases, workforce training, and EV-related business expansion. Credit guarantees via Syarikat Jaminan Pembiayaan Perniagaan (SJPP) would help dealers secure bank financing, alongside potential matching-grant or co-financing programmes modelled on the Budget 2026 vehicle-disposal scheme.

The association further proposes that joint business support programmes help automotive SMEs expand, diversify, and integrate operations into upstream and downstream supply chains. The SJPP mechanism is specifically cited as important for facilitating access to bank and financial institution financing for Bumiputera entrepreneurs.

Pekema has requested a special low-interest or flexible financing scheme for Bumiputera automotive SMEs, backed by SJPP credit guarantees and potential matching grants.

What Are the Short-Term Challenges of Ending CBU EV Incentives?

The end of CBU (completely built-up) EV tax incentives in 2026 will create short-term challenges including reduced consumer demand and dealer adjustment difficulties, Pekema acknowledges. However, the association recognises that in the long term, local assembly (CKD) can strengthen domestic industry and attract greater investment into Malaysia's EV ecosystem.

Pekema frames the incentive termination as part of the government's broader strategy to encourage local assembly. The association stated it will continue to support the government's transition efforts while ensuring its members are prepared to seize opportunities in the CKD segment.

The 2026 termination of CBU EV tax incentives is expected to create short-term demand and adjustment challenges, but long-term local assembly could attract more investment to Malaysia's EV ecosystem.

Who Is This For in Malaysia?

The Budget 2027 proposals directly target Bumiputera automotive importers, used-import vehicle dealers, and small and medium enterprises (SMEs) operating in Malaysia's vehicle trade and service sector. These businesses face dual pressure: declining demand for used ICE imports and the capital cost of upgrading showrooms, service centres, and technician skills for EV servicing.

Relevant context for Malaysian readers includes:

• Compact urban operations: Many Pekema members operate in urban centres such as Kuala Lumpur and Selangor where land for 3S facilities is constrained and expensive, making government support for showroom and service-centre upgrades essential.
• Charging infrastructure gap: The proposal for charging infrastructure development aligns with Malaysia's national EV rollout, which requires significant expansion of public and private charging points to support consumer adoption.
• SJPP credit guarantees: These are a recognised Malaysian government-backed mechanism that helps SMEs without strong collateral secure bank financing, making the proposed expanded guarantee scope directly relevant to Bumiputera automotive firms.
• Skill certification: EV servicing in Malaysia requires technician training aligned with national vocational certification standards, which the proposed training and certification incentives aim to support.

Common Questions

What are Pekema's three main demands for Budget 2027?

Pekema's three demands are: first, reform of tax and import duty structures for fairer competition; second, incentives for the EV transition covering CKD assembly, component manufacturing, charging infrastructure, and workforce training; and third, special financing schemes plus SJPP credit guarantees for Bumiputera automotive SMEs.

Why is the end of CBU EV incentives in 2026 a challenge for Bumiputera dealers?

The termination of CBU (completely built-up) EV tax incentives in 2026 is expected to reduce consumer demand for imported EVs in the short term and force dealers to adapt their business models to the local assembly (CKD) market, requiring new investment in equipment, skills, and service facilities.

How can Bumiputera automotive SMEs access the proposed financing?

Pekema proposes a special financing scheme with low or flexible interest rates, plus credit guarantees through Syarikat Jaminan Pembiayaan Perniagaan (SJPP) to help SMEs obtain bank loans. The association also suggests matching-grant or co-financing programmes expanded from the Budget 2026 vehicle-disposal scheme toward EV capability development.

Sources and Methodology

This article is based on the original report published by Careta.my on 19 September 2026, written by Qalif Latif, titled "Belanjawan 2027: Pekema Mahu Insentif Bantu Pengusaha Bumiputera Beralih Kepada EV", which itself cites Utusan Malaysia as the underlying news source. All direct quotes were translated from Malay to English by the editor and attributed to their original speakers. Currency amounts are referenced in Ringgit Malaysia (RM) where applicable; no USD conversions were required because the source material contains no non-RM figures. The article was last updated on 19 September 2026. Information specific to Malaysia was verified against the Careta.my report and the cited Utusan Malaysia coverage of Pekema's Budget 2027 submission.