Barisan Nasional Chairman Dato’ Seri Dr. Ahmad Zahid bin Hamidi has unveiled their coalition’s manifesto ahead of the upcoming 15th General Election. Under its environmental pillar, one of the promises is to make affordable electric vehicles (EV) more accessible to Malaysians by abolishing import permits or AP (Approved Permits).
The abolishment of APs, if delivered as promised, can potentially open the floodgates of more affordable EVs into the Malaysian market, especially from China. An AP is essentially a licence from the Ministry of International Trade and Industry which is required to import selected products which also include iron and steel, heavy machinery, CWC chemicals and motor vehicles. However, there’s no mention of any deadline to abolish the AP for EVs.
During the tabling of Budget 2023 by Finance Minister Tengku Zafrul Aziz last month, the government aims to extend the exemption of import tax and excise duties until 31st December 2024. The government is also giving exemption of AP fees for EV importers until 31st December 2023. To incentivise charging equipment manufacturers, the government is also offering 100% income tax exemption on their statutory income for ten years for the assessment years 2023 to 2032, as well as a 100% “investment tax allowance”.
With the current EV incentives, the cheapest EV models in Malaysia cost around RM150,000. This includes the Hyundai Kona electric, as well as the incoming GWM Ora Good Cat and BYD e6.
As part of its manifesto for sustainability, BN wants to ensure all public transport and all government official vehicles are environmentally friendly by 2030.
