DESPITE offering one of the region’s most generous tax holidays for electric vehicles (EVs), Malaysia has yet to see the mass-market explosion enjoyed by its Asean neighbours, particularly Thailand and Indonesia.
According to an article by NST, with the tax exemption for completely built-up (CBU) imported EVs set to expire on Dec 31, 2025, Malaysia faces a critical juncture.
While the tax holiday successfully stimulated initial interest in electric vehicles, several structural barriers to mass adoption of battery electric vehicles remain unaddressed.
If Malaysia wants to achieve the goals stated in the National Energy Transition Roadmap, the country must devote more thought to a long-term policy framework focused on production and infrastructure.
After three years of a total tax holiday, Malaysia’s EV market share in 2025 is set to languish between 5.0 and 6.0 per cent – a veritable laggard when compared to Thailand’s double-digit adoption rate, which now approaches 20 per cent of total industry volume. Read more here.
