Malaysia Keeps New EV Import Rules As MITI Pushes Local Automotive Growth

KUALA LUMPUR, JULY 2026 – Malaysia has no plan to withdraw its decision on the new import requirements for fully built-up electric vehicles, also known as CBU EVs, according to the Ministry of Investment, Trade and Industry. The ministry said the policy remains part of the government’s broader effort to rationalise EV model entries into the local market while ensuring Malaysia’s automotive industry stays competitive and sustainable.

MITI said the move is aligned with the core direction of the National Automotive Policy, which focuses on developing a stronger domestic automotive ecosystem. The ministry explained that the government must balance consumer interests with the need to build local industrial capability, especially as electric mobility becomes a key part of Malaysia’s future transport sector.

In a written parliamentary reply, MITI said consumers have the right to access affordable electric vehicles, but the country also needs a strong automotive industry that can create high-skilled jobs, develop local vendors, attract quality investments and strengthen the domestic supply chain.

The statement was issued in response to a question from Pang Hok Liong, the Member of Parliament for Labis, who asked whether the government would reverse the recently announced decision. He raised concerns that the move could conflict with the government’s goal of accelerating EV adoption, especially for consumers seeking electric vehicles priced below RM100,000 or RM150,000.

MITI stressed that the government is not stopping efforts to expand EV usage in Malaysia. Instead, it said incentives remain in place for locally assembled electric vehicles, or CKD EVs, including full exemptions on import duty, excise duty and sales tax until December 31, 2027.

According to the ministry, these incentives allow manufacturers to offer EV models at more competitive prices while encouraging local assembly, technology transfer and the development of Malaysian vendors. This approach is intended to support both consumer affordability and long-term industrial growth.

At the same time, the government is also working to accelerate the development of Malaysia’s EV ecosystem by expanding charging facilities nationwide. MITI said EV affordability does not depend only on vehicle prices, but also on whether charging infrastructure is accessible and practical for everyday users.

The ministry compared the development of EV adoption to the earlier growth of internal combustion engine vehicles, noting that consumer acceptance grows alongside a strong supporting ecosystem. It pointed to the role of more than 3,000 petrol stations nationwide in supporting conventional vehicle usage as an example of how infrastructure affects adoption.

MITI said the government’s goal is not only to increase EV sales in the short term, but also to build a sustainable EV ecosystem. This includes ensuring that Malaysians can eventually enjoy more affordable electric vehicles while the country gains from industrial growth, skilled job creation and local technology development.