Malaysia

Govt must build EV ecosystem to boost take-up rate, says MCA

Tax incentives not enough to encourage more to invest in an electric car.

Updated 2 years ago · Published on 06 Jun 2024 2:26PM

Govt must build EV ecosystem to boost take-up rate, says MCA
The government will levy a road tax on electric vehicles, starting 2026. – Pixabay pic, June 6, 2024.

THE government must step up efforts to build an ecosystem to promote the use of electric vehicles (EVs), MCA deputy president Wee Jeck Seng said today.

He said this includes providing sufficient charging stations, ensuring reasonable charging fees, and enhancing existing EV infrastructure.

The Tanjung Piai MP said tax incentives for zero-emission vehicles were not enough to encourage more people to invest in an EV.

“Support policies and incentives should also be offered to encourage more charging station installations at petrol stations, shopping centres, condominiums, and public places to expand access for EV drivers.

“This is because the lack of charging facilities and the high prices of EVs are among the factors that influence consumers’ decisions on purchasing EVs,” he said in a statement.

Wee added that by addressing consumers’ concerns and providing a better EV ecosystem, the government could significantly boosy the adoption of EVs.

On Tuesday, Transport Minister Anthony Loke announced the road tax rate for EVs, effective January 1, 2026.

Loke said the new fee is 85% lower than the current rate to encourage people to switch to EVs.

In February 2022, the Road Transport Department announced the incentive of a full road tax exemption for EV vehicles from January 1, 2022, to December 31, 2025.

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