Miti: EV import policy revised after tax incentives end, RM200,000 CIF threshold set

KUALA LUMPUR, July 8 — The government has revised its electric vehicle (EV) import policy following the expiry of tax incentives for imported Completely Built-Up (CBU) EVs, which were introduced from 2022 until Dec 31, 2025 to encourage early adoption and support the long-term development of Malaysia’s automotive ecosystem.

Ministry of Investment, Trade and Industry (Miti) Deputy Minister Sim Tze Tzin said the government had introduced new requirements, including a minimum Cost, Insurance and Freight (CIF) value of RM200,000 and a minimum motor power output of 180kW.

“These measures are not intended to increase the price floor of EV CBU vehicles. Instead, they represent a rationalisation effort and a strategic transition in the national CBU policy, taking into account several factors,” he told the Dewan Rakyat today.

He was responding to Julau MP Datuk Larry Soon @ Larry Sng Wei Shien, who asked whether the government had conducted an impact assessment on recent policy decisions that resulted in higher prices for imported EVs, particularly in terms of consumer affordability, EV adoption targets, investor confidence and Malaysia’s competitiveness as a regional EV hub.

Sim said Malaysia’s EV development strategy consists of three phases, beginning with the adoption phase from 2022 until the end of 2025, when incentives were provided to encourage Malaysians to adopt EVs and support the development of the EV ecosystem.

The second phase focuses on encouraging local assembly to strengthen Malaysia’s industrial capabilities, while the third phase aims to increase localisation so local vendors can benefit from the expansion of the EV sector.

“Malaysia should not merely become a consumer market but should also develop its own industrial capabilities,” he said.

Sim added that the government had set clear EV adoption targets, with EVs and other electric vehicle categories (XEV) expected to account for 20 per cent of vehicle adoption by 2030, 50 per cent by 2040 and 80 per cent by 2050.

On whether the revised policy would affect investor confidence and competitiveness, Sim said investors require clear and consistent policies before committing to investments.