Tariffs, Duties & the Drive Towards Global Competitiveness
-full_normal.jpg)
On April 2, Donald Trump shocked global markets by imposing sweeping tariffs on imported goods, calling it “Liberation Day.” The move, aimed at reviving domestic car manufacturing, is expected to do the opposite - hurting consumer choice, inflating prices, and slashing carmakers’ profits.
But as much of the world scrambles to respond, Malaysia faces a similar reckoning of its own making.
Later this year, Malaysia will remove the import and excise duty exemptions on CBU electric vehicles (EVs). This shift is likely to mirror the fallout in the United States, where new levies have already prompted predictions of collapsing vehicle sales and production slowdowns.
EV imports into Malaysia, which had surged under the tax-free window, are poised to shrink significantly. What’s worse, there’s no clear, long-term plan to attract global brands to invest in local CKD (completely knocked-down) assembly beyond the current 2027 exemption deadline.
-full_normal.jpg)
The absence of a robust EV industrial policy risks making Malaysia an unattractive destination for carmakers. Without clear incentives and infrastructure to support CKD manufacturing or localisation, automakers will think twice before betting on Malaysia as a serious production hub.
What we're seeing now is the tail end of a tax holiday prompting a sales surge, not the beginning of a sustainable transition.
Trump’s tariff shockwave has had ripple effects worldwide, and it’s forcing countries to reevaluate their automotive strategies. Perhaps it’s time Malaysia did the same. If we continue relying on protectionism and short-term incentives, we risk falling behind in a region that’s becoming increasingly competitive in EV manufacturing and investment.
-full_normal.jpg)
Countries like Thailand and Indonesia are pulling ahead, offering clear roadmaps and policies to support long-term growth in green mobility.
Without decisive reforms, Malaysia's auto industry could remain stuck - vulnerable to external shocks, and unattractive for real investment. Rebuilding our local industry doesn’t have to mean shielding it from competition.
Instead, it should mean creating the conditions for it to thrive: consistent policies, investment in skills and infrastructure, and a clear path for automakers to localise production in a way that makes economic sense.

And while we’re at it, why not push for greater transparency and accountability in the auto industry? Moving forward, car brands could be mandated to disclose the exact import and excise duties paid on each vehicle - similar to the import documentation that grey market vehicle buyers receive.
If we expect consumers to make informed choices, isn’t it time we gave them access to the full picture?
If the goal is to create a globally competitive auto industry, then we need to stop using protectionism as a crutch and start using policy as a catalyst. The window to act is closing fast. Let’s not wait for our own “Liberation Day” to realise we missed the EV revolution.
Source: The Economist
Gallery
Written By
Kumeran Sagathevan
More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!
JPJ Running Numbers
KUALA LUMPUR
VQD6353
SELANGOR
BSK8493
JOHOR
JYM7917
PULAU PINANG
PRW5654
PERAK
APD3748
PAHANG
CFE4593
KEDAH
KGD4350
NEGERI SEMBILAN
NEH8965
KOTA KINABALU
SJP2853
KUCHING
QAB7426M
Last updated 16 Dec, 2025
Fuel Price
Petrol
RON 95
RM 2.64
-0.02
RON 97
RM 3.27
-0.02
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 3.06
-0.02
EURO 5 B7
RM 3.26
-0.02
Last updated 11 Dec, 2025
Related News
RM480 Bil Tariff Hit: US Auto Industry Caught in Crossfire
Sweeping US auto tariffs could cost the industry RM480 billion in 2025, hitting Detroit’s Big Three the hardest.
11-04-2025
Malaysia & ASEAN Set to Discuss Tariff Issues with the US
Prime Minister Anwar Ibrahim said Malaysian officials will be sent to the US to begin a dialogue on the tariff issue.
08-04-2025
Budget 2026: RM13bil To Strengthen Road Infrastructure Nationwide
The government will channel RM13 billion to enhance road networks, improve safety.
12-10-2025
Singapore Hits EV Milestone as Region Embraces xEV Future
Singapore hits xEV milestone as EVs account for 40.2% of new Q1 2025 new car sales.
05-05-2025
Latest News
Gemas-JB ETS Needs Better Access To Curb City Traffic - Expert
Experts urge improved first-mile access, feeder buses, and park-and-ride options for the Gemas- JB ETS.
16-12-2025
SCS Adopts Advanced European Testing Systems
SCS raises the bar for vehicle inspections with advanced European testing technology.
16-12-2025
Shah Alam LRT Launch Delayed To Avoid Another 2021 Kelana Jaya Crash
Prasarana delays the Shah Alam LRT opening, prioritising passenger safety and thorough testing after past LRT mishaps.
15-12-2025
Federal Highway Won’t Be Upgraded, Costs Deemed Too High
Despite worsening traffic conditions, the Federal Highway will not be upgraded, with the government citing high costs.
15-12-2025
Bollards Are There for Your Safety, Not Decoration - DBKL
DBKL is reminding the public that bollards play a crucial role in keeping pedestrians safe.
15-12-2025
Experts Call For Stricter Rules, Defensive Driving As Road Deaths Rise
Negligent driving caused over 1,200 fatalities this year, prompting calls for tougher enforcement and smarter driver education.
15-12-2025
New KTM Komuter Timetable Starts Jan 1 Amid Track Works
KTMB will roll out a revised KTM Komuter schedule from Jan 1 due to ongoing KVDT2 works.
15-12-2025
Govt Rules Out Tiered RON95 Pricing After 300 litres
Government rules out tiered RON95 prices under BUDI95, keeps RM1.99 for first 300 litres
12-12-2025
Show More
trending_flat