Investment, Trade and Industry (MITI) Minister Datuk Seri Johari Abdul Ghani has sent a clear message to the industry: bringing EVs into the country is no longer just about pushing sales volumes. Automakers must take active responsibility in building the country's charging ecosystem.
Speaking at the opening of the Autodeutsch vehicle service centre, Johari stressed that accelerating EV sales without matching public charging infrastructure creates severe headaches for everyday Malaysians.
The pressure is particularly acute for apartment and high-rise residents who purchase affordable EVs but lack the option to install private home wallboxes. To prevent range anxiety and grid bottlenecks from stifling long-term adoption, MITI is currently evaluating a proposed EV sales levy on manufacturers to directly fund nationwide public charging expansion.
The Infrastructure Bottleneck: Why Selling EVs Isn't Enough
For years, the Malaysian government incentivized early EV adoption through generous import, excise, and sales tax exemptions. While this brought a wave of new electric models into showrooms, it resulted in over RM3.3 billion in foregone tax revenue between 2022 and 2025 without yielding a proportionate expansion in public charging stations.
The minister highlighted that while early adopters with landed properties could easily charge overnight, mass-market adoption requires serving buyers in high-rise residences. Without public charging stations accessible near flat complexes, apartments, and public hubs, cheaper EV imports risk leaving buyers stranded.
"If there is no ecosystem, and you come only to sell cars, there will be problems. Who will have the problem? The people who buy them."
— Datuk Seri Johari Abdul Ghani, Minister of Investment, Trade and Industry
Strategic Shift At A Glance
Malaysia is transitioning from subsidizing imported EV buyers (which cost RM3.3B in lost revenue) to requiring automakers to co-fund the public charging network. The side-by-side comparison below details how MITI’s policy pivot restructures EV incentives.
Malaysia EV Policy Pivot: Tax Exemptions vs. Infrastructure Levy
Comparing the 2022–2025 CBU incentive phase against MITI's proposed public charger funding framework.
Policy Dimension
Former Incentive Era (2022–2025)
Proposed Infrastructure Model
Primary Goal
Market Growth
Drive initial EV market interest via lower vehicle prices.
Infrastructure First
Accelerate nationwide public charging availability & grid readiness.
Tax Mechanism
Full CBU import duty, excise, and sales tax exemptions.
Potential levy imposed per EV unit sold.
Funding Strategy
Government foregoes revenue to spur private investment.
Dedicated fund dedicated to public charger rollouts.
Target Infrastructure
Left largely to private CPOs and automakers.
Mandatory stations every 50–100 km on major routes.
Addressing Range Anxiety & High-Rise Reality
A core focus of MITI's strategy is ensuring long-distance interstate travel is seamless. Johari noted that drivers traveling long stretches, such as from Johor to Perlis, should never have to worry about running out of battery in heavy festive traffic.
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
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