Malaysia govt refining EV incentives, working with utility company to boost fast-charging stations

Malaysia is actively working to accelerate the adoption of electric vehicles by refining its policies and incentives for charging infrastructure. The government is collaborating with utility provider Tenaga Nasional (TNB) to construct essential power substations, which are crucial for supplying the direct current needed by fast chargers.

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Electric vehicles are a new technology and product segment. As we develop this industry, the government is continuously adjusting its policies and incentives while expanding the number of charging points.

Deputy Investment, Trade and Industry Minister Sim Tze Tzin stated that as the EV industry develops, the government continuously adjusts its strategies and expands charging points. He emphasized that substations are a key component of the charging ecosystem, ensuring sufficient power for effective charger operation. The government is also developing targeted incentives to encourage further investment in charging infrastructure by operators.

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What the government is doing now is collaborating with stakeholders, particularly TNB, to construct substations.

Responding to suggestions, Sim acknowledged the need for EV manufacturers to play a more active role in building charging stations and incorporating facilities into new housing developments. While these changes will take time, the government is considering these proposals to improve its efforts. The minister also highlighted the different regulatory approach for EVs compared to internal combustion engine (ICE) vehicles, noting that EV policies must support both consumer adoption and the growth of local EV industries.

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For charging points to function effectively, we need substations to supply sufficient direct current power, which means we must construct more of these substations.

To protect tax revenue and prevent under-declaration of import values for completely built-up EVs, Malaysia has introduced a minimum Cost, Insurance, and Freight (CIF) value. This measure, along with a lower excise duty of 10 percent for EVs compared to ICE vehicles, aims to create a more balanced and supportive environment for the burgeoning EV market.

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While this process will take time, the government has taken note of the suggestions raised by Kubang Pasu, and we will continue to improve our efforts.