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Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023

Soon, we will be seeing Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023. The following are the reasons why.
Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023

President of the Malaysian Automotive Association (MAA) Datuk Aishah Ahmad revealed that, as of October 2022, the registration of EVs reached over 2090. MAA also believes passenger electric car sales can reach 4,449 units in 2023 as predicted by Fitch Solutions, according to The Star. Like in other countries, the Malaysian government is pushing for the adoption of EVs to reduce emissions.

Switching to electrified mobility is one of the best ways to save on petrol. This means consumer demand for fossil fuels will decrease, thus reducing the need for drilling for oil, a key factor contributing to high carbon emissions. However, the adoption of EVs in Malaysia is still slow. High sticker prices, range anxiety, lack of charging infrastructure, and limited supply of EV components are the reasons why people hesitate to switch to electric cars. So, how does Malaysia plan to boost the uptake of EVs by 2023? Here are steps the Malaysian government is taking to encourage consumers to transition to electric cars.

Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023

Tax Incentives

Currently, the average price of an electric car ranges from RM150,000 ($53,600) to RM700,000 ($220,820) for individual buyers. The figures show that EVs are costly for the average buyer and a barrier to the mass acceptance of electric mobility. To encourage the adoption of EVs, the government has created incentives that will reduce the cost of these vehicles.

Tax incentives for electric cars in Malaysia apply to imports, individual owners, and local assembly. Imported electric cars, for instance, have full tax exemption on import and excise duty up to 2023. Locally assembled electric vehicles also enjoy full import and export exemption along with a sales and service tax waiver until 2025. If you’re buying an EV for personal use, expect to receive road tax exemptions and personal tax exemption of about $571 for EV charging infrastructure.

Deployment of Charging Infrastructure

According to the Ministry of Science, Technology, and Innovation (MOSTI) the number of public EV charging infrastructure in Malaysia is low, with less than 1,000 installed. Fortunately, the government plans to install 10,000 EV chargers by 2025 through collaboration with private investors. With a robust charging ecosystem in place, Malaysia can support the widespread adoption of electric vehicles in the future.

Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023

But building EV charging stations in public and private spaces is costly for private investors, local businesses, and homeowners. For this reason, the Malaysian government is offering companies interested in building EV chargers tax incentives. These incentives include financial aid and pioneer status designed to offset the cost of buying and installing level 2 and DC fast chargers.

Government Support for EV Development

The Malaysian government is supporting EV production through policies designed to boost EV investments and ecosystems proposed by local and international investors. Among the policies pioneered by the government to support electric vehicle development are incentives for EV component makers and local manufacturers of enhanced environment-friendly vehicles (EEVs) and electric cars. By supporting local and international auto manufacturers, the government aims to discourage the production of gas-fueled cars and encourage the uptake of EVs.

Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023

Compared to neighbouring regions, Malaysia is lagging in embracing EVs. The good news is the government is doing everything possible to encourage consumers to make the transition from gas-fueled cars to EVs. With the introduction of tax incentives for individual car buyers, local assemblies, and imports, the government aims to ensure EVs are affordable and easy to acquire. There are also plans to expand the EV charging infrastructure and financial aid for electric car production.

Images credit: Shutterstock

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Tekkaus® | Malaysia Lifestyle Blogger | Influencer: Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023
Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023
Soon, we will be seeing Demand For EVs And Deployment Of EV Infrastructure In Malaysia To Rise In 2023. The following are the reasons why.
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