Malaysia Considers EV Levy and Import Tax Changes Amid Slow Charger Rollout
Experts warn proposed policy moves could raise ownership costs and weaken Malaysia's appeal as an EV manufacturing hub.
Quick Look
Economists and experts warn that proposed EV policy moves in Malaysia, including a potential sales levy and changes to import tax exemptions, could raise costs and weaken the nation's appeal as a manufacturing hub as charging infrastructure lags behind targets.
AI-generated summary
Why It Matters
Malaysia forgone about 3.3 billion ringgit in tax revenue through exemptions for fully imported EVs between 2022 and 2025.
Economists and industry experts warn the two policy moves could raise ownership costs while weakening Malaysia’s appeal as a manufacturing base at a time when regional rivals are competing for EV investment.
EV sales more than doubled to 30,848 units in 2025, according to the Malaysian Automotive Association, while government data showed cumulative electric-car registrations had reached 115,349 by the end of June 2026.
Malaysia’s Ministry of Investment, Trade and Industry (Miti) was studying a levy on every EV sold to expand the public charging network, minister Johari Abdul Ghani told the upper house of parliament on Tuesday.
Johari said Putrajaya had forgone about 3.3 billion ringgit in tax revenue through exemptions for fully imported EVs between 2022 and 2025, but private investment in chargers had failed to keep pace.
Malaysia had installed 6,416 public charging points by May 31, including 2,143 fast chargers, according to a written parliamentary reply from Miti in July – still below an earlier target of 10,000 by the end of 2025.
What to Watch
AI outlook — possibilities, not facts
Ministry to study levy implementation for EV charging network expansion
Likely · Within months
Open Questions
- What will be the exact amount of the proposed EV levy?
- When will the Ministry of Investment, Trade and Industry finalize the policy?
