The government is considering imposing a levy on every electric vehicle (EV) sold in Malaysia, with the proceeds channelled into a dedicated fund to accelerate the expansion of public charging stations nationwide.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the proposal was being studied as the government faced financial constraints in developing charging infrastructure on the scale required to support wider EV adoption.
“We may impose a levy on every EV sold and channel the proceeds into a dedicated fund to build public charging stations because we cannot rely solely on vehicle manufacturers or distributors to undertake such investments,” he said.
Johari highlighted that the lack of accessible public chargers remained the biggest obstacle to EV uptake, particularly among residents of apartments and People’s Housing Programme developments who cannot install private charging points.
“The government had previously granted import duty, excise duty and sales tax exemptions for completely built-up EVs for four years to stimulate demand and attract investment.
“However, the incentives resulted in RM3.3 billion in forgone tax revenue, while investment by industry players in public charging facilities failed to meet expectations.
“After four years, when we looked for public charging stations, the investment from EV industry players was simply not there,” he shared.
The government subsequently allowed the incentives for imported EVs to lapse, while retaining tax exemptions for completely knocked down EVs until Dec 31, 2027, to support domestic assembly and industry development.
Nevertheless, Johari said Malaysia would continue welcoming EV investments that delivered broader economic benefits, including local vendor development, technology transfers and high-skilled employment.
While EVs represented the future of mobility, he said a comprehensive and accessible charging network was essential before adoption could expand meaningfully across the country.
