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.

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 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.

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.

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