While it wasn’t verbally mentioned at the retabling of Budget 2023 by the current government, electric vehicles (EV) in Malaysia are actually getting more incentives now. These include both fully imported (CBU) and locally assembled (CKD) EVs.
Previously, import and excise duties exemption on CBU EVs in Malaysia were proposed to end on 31 December 2024 at the original tabling of Budget 2023. But this has now been revised to be extended another year to 31 December 2025.
That also means the highly anticipated Smart #1 electric SUV that will be brought into Malaysia by Proton Edar towards the end of this year – in CBU form – can enjoy over two years of tax-free prices. As for CKD EVs, they will remain tax-free until 31 December 2027. That’s right, locally assembled EVs get two additional years of tax exemptions.
Thanks to these incentives, EVs in Malaysia should remain (relatively) affordable for quite some time, which should bolster EV adoption on our shores. As EV charging infrastructure is further improved throughout the country, EVs are set to be more attractive options in the near future.