Malaysia is stepping up efforts to accelerate electric vehicle (EV) adoption by improving ownership affordability, expanding charging infrastructure and strengthening the domestic EV ecosystem, its Ministry of Investment, Trade and Industry (MITI) said on Wednesday.
Its Minister Sim Tze Tzin told the Parliament that the government remains committed to expanding EV usage as part of the country’s automotive industry transformation strategy and transition towards a low-carbon economy.
He said the EV agenda is aligned with the National Automotive Policy (NAP) 2020, which aims to position Malaysia as a production and export hub for Next Generation Vehicles (NxGV), as well as the New Industrial Master Plan 2030 (NIMP 2030), which identifies electrification as a key growth driver for the manufacturing sector.
Malaysia has set targets for electrified vehicles (xEVs) to account for 20% of total industry volume (TIV) by 2030, rising to 50 percent by 2040 and 80 percent by 2050.
“To achieve these targets, the government is focusing on three key areas, namely stimulating demand, strengthening charging infrastructure and developing the local EV industry ecosystem,” he noted.
To improve EV affordability and encourage adoption, he said the government has introduced various fiscal incentives, including exemptions on import duties, excise duties and sales tax for fully imported (CBU) EVs until Dec 31, 2025, and locally assembled (CKD) EVs until Dec 31, 2027.
The government has also provided individual income tax relief of up to RM2,500 annually for EV charging-related expenses at residences until the 2027 assessment year. Meanwhile, the MARiiCas program offers rebates of up to RM2,400 for electric motorcycle purchases.
As the EV market matures, he said the government is shifting its focus from reliance on fully imported vehicles towards strengthening local assembly capabilities.
The move is aimed at encouraging global automakers to establish local production operations through partnerships with domestic industry players, which would support technology transfer, develop high-value component supply chains and create more skilled employment opportunities.
On charging infrastructure, MITI said Malaysia had installed 6,416 public EV charging points as of May 31, 2026. Of the total, 2,143 units are DC fast chargers, while 4,273 units are AC chargers.
To further address infrastructure gaps, the government has adopted a whole-of-government approach involving agencies such as PLANMalaysia, local authorities, the Energy Commission, Tenaga Nasional Bhd, charging point operators and industry associations.
He said the implementation of the EV Charging Bay Planning Guidelines (GPP EVCB) by PLANMalaysia has helped shorten approval timelines for charging facilities to as fast as 14 working days.
He added that EV infrastructure development is being monitored through the National EV Task Force (NEVTF), chaired by MITI, and the National EV Steering Committee (NEVSC), chaired by Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof.
Beyond infrastructure, he highlighted the importance of developing a competitive domestic EV supply chain, particularly in high-value components such as batteries, electric motors and Advanced Driver Assistance Systems (ADAS).
Under the National EV Project led by Perodua under NIMP 2030, he said 62 local supplier companies and more than 300 Malaysian engineers and automotive specialists have been involved in EV development. Proton’s EV project, meanwhile, aims to involve 40 local companies in its supply chain.
He also said these initiatives would strengthen local vendor capabilities, accelerate technology transfer and enable Malaysian companies to participate in the global EV supply chain.
“The development of EVs is an industrial transformation agenda covering investment, technology, talent, infrastructure and supply chains,” he said, adding that the government would continue to adopt a balanced approach to strengthen the automotive industry while ensuring benefits for consumers and the wider economy.
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