Govt considers EV levy to fund nationwide public charging network expansion

THE government is considering introducing a levy on every electric vehicle (EV) sold in Malaysia to establish a dedicated fund for expanding the country's public charging network.

Investment, Trade and Industry (MITI) Minister Datuk Seri Johari Abdul Ghani said the proposed mechanism is being studied to ensure the development of Malaysia's EV ecosystem can keep pace with rising consumer adoption.

"We need to find a mechanism on how to develop public chargers. Perhaps every EV sold here will be charged a fee to be placed into a fund to build public chargers," he said during an oral question-and-answer session in the Dewan Negara on Tuesday.

Johari said Malaysia currently has more than 1,000 public charging points, but the figure remains insufficient, particularly for supporting long-distance travel.

He said charging infrastructure development must be accelerated if EVs are to become a viable alternative to internal combustion engine vehicles, which are currently supported by about 3,500 petrol stations nationwide.

Johari added that the government does not intend to extend the full import tax exemption for completely built-up (CBU) EVs after the four-year incentive period resulted in an estimated RM3.3 billion in foregone tax revenue.

He said the decision was also influenced by the fact that public charging infrastructure development by industry players had not met government expectations.

However, incentives for locally assembled (CKD) EVs will continue until Dec 31, 2027, subject to conditions set by the government.

On Chinese automotive giant BYD's reported investment in Tanjung Malim, Johari said the Ministry of Investment, Trade and Industry (MITI) had yet to receive any official information regarding the status of the investment.

He stressed that the government would continue ensuring new investments in the automotive sector deliver greater economic value through local vendor development, technology transfer, the creation of high-skilled employment opportunities and increased export activities. - August 4, 2026