The government has implemented several initiatives to encourage local companies to increase their efforts to manufacture electric vehicles (EVs) to support the development direction of the local automotive industry.

According to the Investment, Trade and Investment Deputy Minister Liew Chin Tong, among the initiatives or efforts undertaken by the government include the full exemption of import and excise duties for imported completed built up EVs until Dec 31, 2025, and the full exemption of import and excise duties, and sales tax for domestically produced EVs until Dec 31, 2027.

"Other initiatives include income tax allowance or pioneer status for companies manufacturing energy efficient vehicles (EEV) including EVs and related critical components, road tax exemption for EV users until end of next year, the granting of Green Investment Tax Allowance to Charging Point Operators that meet the tax incentive criteria for tax exemption in the form of a 100% Investment Tax Allowance for five years.

"At the same time, income tax exemption on statutory income was also granted for companies manufacturing EV Charging Equipment from 2023 to 2032 and individual income tax relief of up to RM2,500 for the installation or subscription of EV charging facilities at home for the assessment year up to 2027," Liew said in the Parliament today.

He was responding to a question from Kota Melaka MP Khoo Poay Tiong on measures undertaken by the government to encourage local industry players to increase efforts to manufacture EVs to meet local EVs demand.

Liew added that the government have also introduced several initiatives for the development of the EV ecosystem to support the development of EV industry.

"Among them includes the provision of EV charging facilities with a target of 10,000 EV charging bays by 2025, the development of the NxGV test centre (EV Interoperability Centre) and the National Rechargeable Battery Testing Centre to facilitate EV testing and development in the country and reduce costs, and the development of related standards such as charging systems, battery disposal activities, battery swapping, wireless charging and other standards to ensure the safety of EV users," Liew said, adding that the government encourages the automotive industry to continue its transition to a greener manufacturing industry.

The deputy ministry stressed that the "Push for Net Zero" mission under the National Industrial Master Plan 2030 aims to decarbonise Malaysia's industry through the implementation of energy efficiency and locally manufactured electric vehicles.