Malaysia proposes one-time EV subsidy to spur adoption and cut fuel subsidies

Malaysia proposes one-time EV subsidy to spur adoption and cut fuel subsidies

KUALA LUMPUR: The Ministry of Investment, Trade, and Industry announced its proposal for a one-time subsidy aimed at accelerating electric vehicle (EV) adoption and moving away from traditional engines.

KEY TAKEAWAYS

  • What good could this subsidy provide to the government?

    It' an opportunity to reduce the burden of long-term fuel subsidies
  • How did this idea come about?

    It was a key topic at the national EV steering committee discussions
  • smart Malaysia 100 days of excellence

    As reported by The Edge, Deputy Minister Liew Chin Tong announced in a Dewan Rakyat session that the proposed initiative for a one-time subsidy to encourage electric vehicle (EV) adoption was a key topic at the national EV steering committee discussions.

    This proposal has since been submitted to the Ministry of Finance for thorough evaluation. Liew emphasized the significant opportunity this subsidy presents in reducing the burden of long-term fuel subsidies, marking a strategic move towards sustainable transportation solutions.

    Liew Chin Tong

    Liew informed that the Finance Ministry is currently evaluating the subsidy proposal. Malaysia is not new to incentivising EV ownership; the nation already benefits from various perks like exemptions on excise, import duties, and road tax, along with income tax deductions for EV charging installations.

    Local automotive giants, Proton and Perodua, are on track to roll out their EV models by 2025. Amidst a significant 400% increase in EV sales, as noted by Liew in response to Datuk Iskandar Dzulkarnain Abdul Khalid of Perikatan Nasional-Kuala Kangsar, the government is also focusing on expanding the fast-charging infrastructure to keep up with demand. The surge in EV purchases saw sales jump to 13,257 units in 2023 from 3,127 units the previous year.

    EV charging Malaysia

    Addressing the crucial issue of "range anxiety" among EV users, especially for long journeys, the government is committed to boosting the availability of direct current (DC) fast charging stations.

    According to the Low Carbon Mobility Blueprint, Malaysia aims to set up 10,000 EV charging points by 2025, including 9,000 AC chargers and 1,000 DC chargers. As of the end of 2023, the country had installed 2,020 charging stations in 750 locations, with a mix of 1,591 AC and 429 DC chargers.

    Mercedes-Benz global high-power charging network

    Liew mentioned ongoing collaborative efforts with various agencies to reassess and potentially enhance the targets for DC fast charger deployment. He stated that updates and further proposals are expected to be discussed in the next National Electric Vehicle Steering Committee meeting slated for the second quarter of 2024.

    Also Read:  Malaysia to Integrate EVs into government fleet

    Adam Aubrey

    Adam Aubrey

    Adam Aubrey is an experienced writer and presenter with over a decade in the automotive industry, known for his passion for rebuilding older cars from the golden era of automotive design. His work also delves into the future of vehicles, highlighting the exciting potential of electric propulsion.

    Read Full Bio

    Sell your car at the best price

    Verified and genuine buyers Verified and genuine buyers
    Free listing Free listing
    List your car

    You might also be interested in

    • News
    • Featured Stories
    • Upcoming
    • Proton e.MAS 7 ev
      Proton e.MAS 7
      Price coming soon
      Expected Launch Dec, 2024 Alert Me When Launched
    • Toyota Yaris Cross
      Toyota Yaris Cross
      RM 130,400 Expected Price Kuala Lumpur
      Expected Launch Dec, 2024 Alert Me When Launched
    • Toyota Hilux Champ
      Toyota Hilux Champ
      RM 59,000 Expected Price Kuala Lumpur
      Expected Launch Dec, 2024 Alert Me When Launched
    • Perodua EM-O ev
      Perodua EM-O
      Price coming soon
      Expected Launch Dec, 2024 Alert Me When Launched
    • Chery Tiggo 8 Pro PHEV phev
      Chery Tiggo 8 Pro PHEV
      Price coming soon
      Expected Launch Dec, 2024 Alert Me When Launched

    Latest Car Videos on Zigwheels

    Zigwheels
    • ZEEKR X and ZEEKR 009 now open for booking in Malaysia
      ZEEKR X and ZEEKR 009 now open for booking in Malaysia
      15 Oct, 2024 .
    • 2024 smart#3 Pro review - The ideal daily?
      2024 smart#3 Pro review - The ideal daily?
      15 Oct, 2024 .
    • BMW i5 REALLY the Best EV for City Driving? Let's find out
      BMW i5 REALLY the Best EV for City Driving? Let's find out
      15 Oct, 2024 .
    • GMW Haval H6 | Review
      GMW Haval H6 | Review
      27 Sep, 2024 .
    • Leapmotor C10 Previewed in Malaysia
      Leapmotor C10 Previewed in Malaysia
      27 Sep, 2024 .
    • 2024 Mitsubishi Xpander Facelift is here! Starting from RM99,980
      2024 Mitsubishi Xpander Facelift is here! Starting from RM99,980
      23 Sep, 2024 .
    • 2024 Mercedes-Benz E-Class and GLC350e
      2024 Mercedes-Benz E-Class and GLC350e
      23 Sep, 2024 .
    • BYD’s got some exciting stuff going on at Sime Darby Motor's AutoMania this weekend!
      BYD’s got some exciting stuff going on at Sime Darby Motor's AutoMania this weekend!
      23 Sep, 2024 .
    • 2024 Peugeot 408 review - Striking design, great performance - worth the Premium?
      2024 Peugeot 408 review - Striking design, great performance - worth the Premium?
      04 Sep, 2024 .
    • First Look: Dongfeng Box EV Preview in Malaysia - October Launch, Specs & Features Unveiled!
      First Look: Dongfeng Box EV Preview in Malaysia - October Launch, Specs & Features Unveiled!
      28 Aug, 2024 .
    Watch Car Videos

    Compare

    You can add 3 variants maximum*