Pekema Seeks Budget 2027 Support to Pivot Bumiputera Dealers Toward EVs

The Persatuan Pengimport dan Peniaga Kenderaan Melayu Malaysia (Pekema) has officially requested that the federal government prioritize Bumiputera automotive entrepreneurs in the upcoming Budget 2027, specifically to facilitate their transition from trading internal combustion engine (ICE) vehicles to participating in the growing electric vehicle (EV) ecosystem.

According to the report by the original publisher, Pekema president Datuk Mohamed Nazari Noordin emphasized that the national automotive sector is undergoing a profound shift that threatens the business models of traditional reconditioned vehicle dealers. To ensure these entrepreneurs remain competitive, the association has formally submitted three primary requests to the government ahead of the 2027 budget announcement.

These requests include comprehensive reforms to current tax and import duty structures, the introduction of targeted incentives specifically designed to aid the EV transition, and the provision of easier access to financing and credit guarantees for Bumiputera small and medium-sized enterprises (SMEs). Datuk Mohamed Nazari noted that these measures are essential to balancing national revenue goals with the long-term business viability of local importers.

The urgency of this request stems from the government’s ongoing efforts to strengthen local vehicle assembly. As the market moves toward electrification and domestic manufacturing, Pekema believes structural improvements to import policies could not only protect Bumiputera SMEs but also assist in Malaysia’s broader ambition to become a competitive regional automotive hub. The association has expressed its full readiness to engage with policymakers to discuss these challenges.

For the average Malaysian consumer, this shift is significant because it touches on the future of the reconditioned car market. Many Malaysians rely on these dealers for affordable, imported vehicles, and the move toward EVs may change the accessibility of such models. If the government adopts Pekema’s proposals, it could potentially lower the barriers to entry for local dealers to become EV service centers or authorized retailers, potentially increasing the variety of EV brands available to the public.

For the wider workforce and small business owners, the stakes are equally high. With the national unemployment rate holding steady at 3.0%, the survival of these SMEs is vital for maintaining jobs within the automotive service and sales sector. Transitioning from traditional engine mechanics to high-voltage battery systems requires significant capital investment, and the availability of credit guarantees could be the deciding factor for whether these businesses pivot successfully or face obsolescence.

The industry landscape is currently influenced by a volatile fuel environment, with unsubsidized RON95 petrol priced at RM4.37 and diesel at RM5.27 as of September 2026. While the Malaysian economy is showing strength with a real GDP growth of 6.0%, the automotive sector must navigate these costs alongside the government’s push for electrification. Inflation remains manageable at 1.8%, yet the automotive industry faces the dual pressure of transitioning its infrastructure while maintaining profit margins.

Looking ahead, the focus remains on how the government will reconcile the interests of local assembly and traditional importers. While Malaysia continues to incentivize EV adoption, the specific policies intended to integrate SME players into this high-tech value chain remain a subject of upcoming legislative debate.

It is currently unknown whether the government will concede to the request for specific tax reforms or if credit assistance will be channeled through existing state-backed financial institutions. Further details regarding the specific structure of these proposed EV incentives have not been disclosed at this time.