Malaysia Boosts Electric Vehicle Industry with Tax Incentives

The Malaysian government has recently announced a series of tax incentives to accelerate the development of the electric vehicle (EV) industry. Deputy Prime Minister Liu Zhendong stated that the government will exempt imported complete built-up electric vehicles from import and excise duties until the end of 2025, with domestic EVs enjoying the same tax exemption until the end of 2027. Additionally, companies manufacturing energy-efficient vehicles (EEVs), including EVs and their critical components, will receive preferential income tax treatment or pioneer status.

The government also plans to support the construction of EV charging facilities, aiming to build 10,000 charging stations, including 1,500 direct current fast-charging stations, by 2025. To encourage the achievement of this goal, the government is encouraging public and private capital investment in the charging network, offering policy support for land use and electricity price subsidies.

Malaysia has set environmental regulations and long-term goals, planning to phase out high-emission fuel vehicles by 2040 and achieve carbon neutrality in the transportation sector. It is expected that by 2030, new energy vehicles will account for more than 20% of the market share, setting a clear direction for the industry. Through these measures, Malaysia is committed to becoming a leader in the regional EV industry and paving the way for a green and sustainable future.