Malaysia's EV industry needs domestic boost, not just foreign cash

Malaysia's electric vehicle (EV) industry needs a balanced approach, not solely relying on foreign investment, stated Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. He emphasized the importance of integrating domestic value addition, strengthening local vendor networks, and facilitating technology transfer.

"These strategic steps are crucial to ensure the local automotive ecosystem remains competitive, sustainable, and a key driver of national economic growth," Johari said in a written parliamentary reply. He was responding to a question from Mohd. Nazri Abu Hassan regarding new regulations for EV manufacturers and sellers in Malaysia.

The minister stressed that attracting foreign investment must be done cautiously, without neglecting the development of the domestic automotive industry, particularly national car manufacturers. To support this, the government will continue offering tax incentives for locally assembled EVs until December 31, 2027. This measure aims to enable the local industry to produce more competitive EVs for market demand while bolstering the domestic supply chain.