KUALA LUMPUR, Malaysia (AP) — Malaysia unveiled a new auto policy Monday, offering incentives and easing curbs on the production of small, energy-efficient cars to vie for investment with neighboring rivals Thailand and Indonesia.

Trade Minister Mustapa Mohamad said new manufacturing licenses will be issued for carmakers producing green vehicles. It is a significant change in policy as the government previously only issued new manufacturing licenses for vehicles with engine size of 1.8 liters and above to protect national car makers Proton and Perodua.