MITI Insists Tough New EV Rules Aren't Just To Protect Proton & Perodua From China Competitors
![]()
We are barely over a week into Malaysia's controversial new EV import policy, and the "protectionism" debate is already boiling over. While consumers are furious that the strict RM200k price floor effectively bans cheap, imported China EVs, MITI is stepping up to defend the move.
In a parliamentary exchange with Julau MP Datuk Larry Sng, who questioned why EVs are being policed so aggressively compared to traditional petrol cars, Deputy Minister Sim Tze Tzin laid the cards on the table. The ministry is doubling down on its stance, making it clear that the era of easy imports is over because Malaysia needs to build its own industrial powerhouse, not just act as a passive consumer market.
"We Want an Industrial Base, Not Just a Consumer Market"

Sim explained that the liberal, tax-free environment we enjoyed from 2022 through 2025 was simply "Phase 1", a temporary window to spark early adoption and get charging stations built. Now, Malaysia has transitioned into Phase 2, where the name of the game is localisation.
"The government allows the importation of CBU (fully imported) vehicles — no problem — that is with the purpose of complementing the domestic market supply without undermining the development of the national automotive industry."
— Deputy Minister, Sim Tze Tzin
The harsh reality? The government wants foreign brands to stop just shipping finished cars to our ports. They want them to set up physical Completely Knocked-Down (CKD) assembly lines inside Malaysia so local vendors, parts suppliers, and high-skilled workers actually benefit from the global EV boom.
If we keep importing cheap city-runabouts without forcing local assembly, Malaysia will remain "just a market" instead of building a resilient industrial base.
Read: MITI Breaks Silence: The Truth Behind the '80% Export' Ultimatum
The Comparison Nobody is Talking About: Petrol Cars Have Faced This for Decades
-(1).jpg)
One of the most interesting points Sim raised to counter the "protectionism" narrative is that this type of policy isn't actually new, we’ve just been living in an artificial EV bubble for the last four years.
When you look at the traditional Internal Combustion Engine (ICE) market, the Malaysian government has been using regulatory gatekeepers for decades. Fully imported petrol cars have long been strictly limited to engine capacities of 1,800cc and above to prevent them from directly cannibalizing the local manufacturing ecosystem.
So why are the rules for EVs structured around a pricing floor (RM200k CIF) and motor power (180kW) instead of engine size? Sim pointed out that the two industries are at completely different stages of development, which requires a totally different tax approach.
The Secret Battle Against "Tax Under-Declaration"
This is where the math gets high-stakes. While traditional petrol cars face massive, progressive excise duties based on engine size, fully electric vehicles currently enjoy a flat excise duty rate of only 10%.
Because that 10% tax rate is so incredibly low, it creates a massive loophole for sneaky distributors to "under-declare" the actual cost of their incoming cars at customs, allowing them to pay pennies in taxes.
"With the lower excise duty rate, determining the import value of electric vehicles becomes more critical to ensure that the basis for taxation is accurate to reduce the risk of under-declaration of import values below their actual value."
— Deputy Minister, Sim Tze Tzin
By hard-coding a strict RM200,000 CIF (Cost, Insurance, and Freight) baseline, the government is essentially cutting off tax evasion at the border, ensuring that state tax revenues are safeguarded while the local supply chain gets the breathing room it needs to mature.

MITI is doubling down: the rules are here to stay. While consumers might miss the influx of cheap, imported foreign options, the government is betting big that forcing global brands to build factories locally is the only way to keep Malaysia from becoming an economic bystander in the green transition.
Read: RM300,000 Is The New Entry Level: 10+ Popular EVs That Won't Survive MITI’s July 1 Rule
Written By
Sofea Najmi
A Bachelor of English Language and Literature graduate with an obsession for the finer details. Sofea uses her background in translation to decode the technicalities of automotive innovation. She is dedicated to delivering impactful, meticulously researched articles that provide a narrative far beyond the spec sheet. LinkedIn: https://bit.ly/3C018vv
JPJ Running Numbers
KUALA LUMPUR
VRM2064
SELANGOR
BST1341
JOHOR
JC8499J
PULAU PINANG
PSE9405
PERAK
APK8506
PAHANG
CFH5140
KEDAH
KGH6648
NEGERI SEMBILAN
NEL5296
KOTA KINABALU
SJT6377
KUCHING
QAB4359P
Last updated 24 Aug, 2026
Fuel Price
Petrol
RON 95
RM 3.97
+1.38
RON 97
RM 4.90
+1.75
RON 100
RM 7.20
+2.20
VPR
RM 8.23
+2.00
Diesel
EURO 5 B10
RM 5.12
+2.08
EURO 5 B7
RM 5.32
+2.08
Last updated 30 Apr, 2026
Related News
The End of Crazy Price Drops: A Market Analyst Says EV Pricing Is Finally Becoming "Rational" In Malaysia
A CIMB Securities automotive analyst reveals why MITI’s new July 1 CBU EV policy will end aggressive price wars and push imported EV showroom prices past RM300k.
25-05-2026
Why BYD’s Surprise Kedah Plant Visit With Sime Motors Is Huge News For EV Buyers
BYD VP Liu Xueliang’s surprise visit to Sime Motors' Inokom plant in Kulim, Kedah hints at a CKD partnership to save affordable EV prices under new MITI rules.
19-05-2026
Should Ministers Drive EVs? 5 Realities Behind The Move To Electrify The Govt Fleet
Is Malaysia's Cabinet going electric? Minister Johari Abdul Ghani discusses the potential switch to an EV official fleet and the RM7 billion subsidy challenge. Read the 5 realities behind the move.
29-04-2026
MITI: Any Bumiputera Company Can Apply For Open AP Starting July
Any Bumiputera company can apply for the open AP permit to engage in vehicle import and sales, says MITI.
19-06-2024
Perodua, Sime Darby Motors Discuss EV Development And EV Battery Recycling With MITI
Tengku Zafrul reveals via X (Twitter) of discussions Between MITI with Perodua and Sime Darby Motors regarding EV development and EV battery recycling.
26-03-2024
MITI Urges BYD to Invest in CKD Production Amidst Tax Exemption Expiry
Amidst the BEV tax exemption expiry in 2025, MITI has encouraged BYD to invest in CKD production here in Malaysia.
23-02-2024
Over 3,400 Runners Entered The Inaugural Chery Eco Run 2024
Chery Malaysia successfully hosts Chery Eco Run 2024 last weekend, which attracted over 3,400 runners in total.
08-01-2024
Perodua EVs And HEVs Could Take Up 20% Of Total Sales By 2030
Perodua is poised to see 20% of its total Malaysian sales helmed by EVs and HEVs by 2030.
30-11-2023
Latest News
From Batik Uniforms To Bilik Solat: 7 Things To Expect From The 160km/h ECRL
ECRL reveals new batik crew uniforms! Discover 7 key features of the 160km/h train experience, from bilik solat to OKU access, ahead of its 2027 launch.
20-08-2026
Ex-MITI Deputy Says Poor Communication Sparked Public Anger Over RM200k EV Rule
Ex-MITI Deputy Dr. Ong Kian Ming reveals why bad government PR sparked public outrage over Malaysia's RM200k CBU EV import rule and cheap Chinese imports.
19-08-2026
25 EV Fires In 3 Years — Why Bomba Says The Numbers Aren't What You Think
Bomba records 25 EV fires in Malaysia over 3 years. Discover why JBPM says numbers aren't rising and get the real facts behind the Cheras house fire.
18-08-2026
Who Can Fix Your Proton e.MAS Like A Pro? PRO-NET & TVETMARA Certify 37 High-Voltage Techs
PRO-NET & TVETMARA certify 37 Level 2 high-voltage EV technicians across 25 Proton e.MAS dealerships in M'sia to strengthen EV aftersales support.
12-08-2026
30,000 Cars Sold In 20 Months! How Proton e.MAS Became Malaysia's Undisputed #1 xEV Brand
Proton e.MAS hits 30,000+ sales in just 20 months! Discover how cheap condo charging, 4,700+ chargers, and 3 best-selling models made it Malaysia's #1 xEV brand.
11-08-2026
"Don't Just Come Here To Sell Cars": MITI Minister Demands EV Brands Help Build Chargers In Malaysia
MITI Minister Johari Ghani warns EV brands to build chargers in Malaysia, proposing a new EV sales levy to expand public charging nationwide. Read more!
10-08-2026
Not Enough Chargers, Now A New Levy? MP Slams Proposed Fee On EV Buyers
Malaysia's proposed EV levy on new car sales has sparked backlash over missing public chargers. Here is why critics say buyers shouldn't pay for the infrastructure shortfall.
07-08-2026
Is Zeekr’s 8-Year Warranty Worth It? 5 Game-Changing Perks Every Buyer Needs To See
Is Zeekr's 8-Year Extended Warranty worth it? Check out official Malaysia prices starting from RM4,999 for Zeekr X, 7X, & 009, plus key deadlines!
05-08-2026
Show More
trending_flat