Malaysia Plans EV Surcharges to Expand Public Charging Network

On August 4, Malaysia’s Minister of Investment, Trade and Industry, Datuk Seri Zahari, stated that the government is considering imposing an additional fee on every electric vehicle (EV) sold and establishing a dedicated fund to expand the country’s public EV charging network. Due to financial constraints limiting the government’s ability to subsidize nationwide public charging infrastructure at the scale seen in China, it is conducting an in-depth study of this proposal. Previously, the Malaysian government granted a four-year exemption from import duties, excise duties, and sales taxes on fully imported EVs to stimulate market growth and attract foreign investment. This policy resulted in a revenue loss of RM3.3 billion (approximately RMB 5.473 billion) over the period, yet investments in public charging infrastructure fell short of expectations. Consequently, the government did not extend the tax incentives for imported EVs but maintained the tax exemption for locally assembled EVs until December 31, 2027, to support the domestic EV industry. Zahari emphasized that Malaysia will continue welcoming EV investments as long as they drive the development of local suppliers, facilitate technology transfer, and create high-skilled jobs. He stressed that only a robust public charging network can enable widespread EV adoption across the nation.