Malaysia Considers EV Levy to Fund Public Charging Network

Minister of Investment, Trade and Industry Johari Abdul Ghani announced that the Malaysian government is considering a levy on every electric vehicle sold to fund a dedicated public charging station network. Speaking in the Dewan Negara, Ghani stated that the government cannot rely solely on vehicle manufacturers or distributors for this infrastructure, noting that previous tax exemptions for completely built-up EVs led to RM3.3 billion in lost revenue without producing adequate private investment in charging stations.

While the government will not extend incentives for imported EVs, tax exemptions for completely knocked down EVs will remain until December 31, 2027, to support the domestic industry.

Additionally, the government is seeking confirmation from BYD Company regarding a planned investment in Tanjung Malim, Perak. The proposed investment is contingent on the Chinese carmaker exporting at least 80% of its production and pricing the remaining 20% of units above RM200,000.