Malaysia will impose new rules on imported fully built electric vehicles (EV CBU) from July 1, requiring a minimum value of RM200,000 and revised performance thresholds, as the government tightens policy following the expiry of a special exemption scheme.
The Investment, Trade and Industry Ministry (MITI) said the four-year exemption for EV imports under the Approved Permit (AP) franchise scheme ended on Dec 31, 2025, marking a shift back to standard regulatory conditions.
“Under the new framework, all EV CBU imported into Malaysia must meet a minimum Cost, Insurance and Freight value of RM200,000. In addition, the minimum motor power requirement has been adjusted to 180kW and above, down slightly from the previous 200kW threshold,” the ministry shared.
However, MITI noted that companies will still be allowed to clear existing inventories, including stock already in the country, at ports or in transit, under the previous exemption terms until supplies are exhausted.
MITI highlighted that the updated rules follow industry engagement sessions with AP holders and are aimed at ensuring a more structured and balanced EV ecosystem, while safeguarding national economic interests and consumer rights.
The ministry reiterated its commitment to maintaining a transparent and consistent policy environment to support the development of Malaysia’s automotive sector, even as it recalibrates incentives in line with market maturity and long-term industry goals.
