Published on October 6th, 2021 | by Subhash Nair0
Malaysian EV Adopters May Get Road Tax Exemption, Income Tax Relief
The Malaysian government are close to formulating EV incentives for customers and carmakers.
When it comes to transitioning to new energy vehicles, Malaysia is far behind many regional and global markets. The approach here has always been short-sighted and most of the time has been aimed at helping premium car brands sell plug-in hybrids, which even the EU thinks aren’t that good for the environment. Now though, the Malaysian government is finally studying a proper framework to encourage electric vehicle adoption. We’re not looking forward to anything that would force older cars to be scrapped in exchange for new electric vehicles, but it’s still exciting to see the country finally moving forward.
As reported by The Edge, MITI Minister Datuk Seri Azmin Ali said that the government would study incentives to encourage electric vehicle ownership and the development of related infrastructure.
How Will The Government Incentivise EV Adoption?
On the electric ownership side, he mentioned road tax exemption and income tax relief for Malaysians who purchase electric vehicles. This would be complemented by further income tax relief for the installation of EV charging facilities. Of course, this probably means AC home chargers.
As for the industry, he said the country would take the ‘compare and offer’ approach… which honestly sounds like the 2021 rebranding of “customised incentives”. Some of the incentives planned are ‘pioneer status’, investment tax allowance, and the classic import and excite duty exemption, which would directly reduce the price of electric vehicles on the showroom floor versus petrol counterparts.
Further Developments in the Private Sector
A day after the statements, Socar announced they’d be partnering up with Tenaga Nasional to set up 50 electric vehicles zones in the country within the next 14 months. This plan involves rolling 22 kW AC chargers and DC Fast chargers throughout the country, with an emphasis on the Klang Valley area. The aim of this project is to prove that EV ownership can be cheaper than petrol car ownership.
Earlier this year, Azmin Ali’s tweets indicated that Socar and their parent SK Group would be key to the country’s EV strategy. SK Nexilis has also invested some RM4.3 billion in EV battery-related production facilities at the Kota Kinabalu Industrial Park.