EMPTA’s 54th annual general meeting

The 54th Annual General Meeting of EMPTA was held on 9 May 2026.

During the meeting, EMPTA Chairman Kau Peng Yap said the war in the Middle East had increased operating costs and brought new challenges to the automotive parts industry.

“The increase in fuel prices is expected to stimulate the sales of electric vehicles (EVs), which is a trend worth our close attention,” he told.

During the meeting, 10 resolutions were passed:

1. Calling upon the Government to establish a coordinated, cross-ministerial industry stakeholder registry to ensure consistent dissemination and consultation of new laws and policies.

2. Calling upon the government to implement the following measures with regard to foreign investment in the automotive parts business.
a. Requiring a minimum Malaysian shareholding of 30% for investment in automotive parts trading companies and repair workshops, and requiring the number of local directors (Malaysian citizen) to be more than foreign directors (non-citizen) in the companies of these two sectors;
b. Requiring automotive parts trading companies and repair workshops with foreign shareholding (directly or indirectly) to have minimum one million ringgit paid-up capital per outlet, because automotive parts and repair workshops are related to road safety, hence accountability is required;
c. Requiring at least 50% of the staff of automotive parts trading companies or repair workshops with foreign shareholding (directly or indirectly) to be Malaysian citizen.

3. Calling upon the Government to strengthen regulatory oversight and licensing requirements for freelance commercial solicitations in the automotive parts distribution and repair sector to prevent unregulated B2B competition and ensure product safety.

4. Calling upon the Government to strengthen oversight and accountability of e-commerce platforms to prevent the sale of counterfeit automotive parts and protect genuine aftermarket brands. EMPTA urges the Government to implement regulatory measures that:
a. Require e-commerce operators to verify product authenticity before listings are published.
b. Make platforms legally accountable for counterfeit products sold through their marketplace.
c. Establish a direct complaint and enforcement channel for end users and brand owners, including cross-border mechanisms to enable timely investigation and action against infringing sellers.
d. These measures would protect consumers, support legitimate businesses, uphold automotive safety standards, and ensure that e-commerce platforms actively maintain marketplace integrity, even in cross-border cases.

5. Calling upon the Government to accept equivalent Component Type Approval (CTA) certifications from Japan (JIS), China (GB), and South Korea (KC) in addition to MS and UNR (E-mark).

6. Calling upon the government to facilitate digital transformation of the automotive parts industry by
a. making the display of vehicle identification number (VIN) on windscreen mandatory for all new vehicles registered with JPJ;
b. providing matching grant for deployment of software and digital services related to the automotive aftermarket industry;
c. providing matching grant for smart logistics and warehouse
automation solutions for the automotive aftermarket industry;
d. granting access of the automotive database of vehicle identification number (VIN number) and vehicle model matching, with Malaysia Automotive, Robotics & IoT Institute (MARii) as the data interface, to facilitate operation of online platforms for automotive parts matching via car licence plate like in the United Kingdom.

7. Calling upon the government to make Malaysia a Southeast Asian automotive aftermarket parts export hub by
a. removing spare parts from the free trade zone’s exemption list, so that spare parts enjoy tax exemption at free trade zone like most other products;
b. abolish the criterion of 3 months for the tax refund in re-export;
c. encouraging more automotive parts players entering licensed manufacturing warehouse (LMW) activity, including re-manufacturing;

8. Calling upon the Government to develop a comprehensive, end-to-end electric vehicle (EV) industry in Malaysia, including local assembly, parts manufacturing, aftermarket, and repair capabilities. EMPTA urges the Government to:
a. Integrate the aftermarket sector in EV policies to support local parts production and servicing;
b. Facilitate knowledge transfer and technology adoption from advanced EV markets;
c. Support local companies through targeted R&D and capacity-building programs;
d. Provide investment incentives for establishing EV-related production, assembly, and repair facilities.

9. Calling upon the government to allow companies with warehouse operation and/or manufacturing operation to hire foreign workers, and to increase the quota for foreign workers, to address the manpower shortage in the industry.

10. Calling upon the Government to reintroduce the Goods and Services Tax (GST). To ensure business and public confidence, EMPTA proposes that:
a. The Government to gurantee GST refund within 30 days, supported by an efficient and automated refund mechanism to safeguard business cash flow;
b. GST be reintroduced at an initial rate of 4%, with future adjustments subject to economic conditions and public consultation.