The Minister of Investment, Trade, and Industry, Tengku Zafrul Tengku Abdul Aziz has hinted that the upcoming Budget 2024 might include financial provisions to spur the adoption of electric vehicles in Malaysia. The remark was made during his speech at the opening of Tesla Centre Cyberjaya today.
Here is the exact excerpt from the speech:
“…and as we look to the future, the Budget (2024) is coming, second week of this month, and our focus remains on inclusivity, aligning with the MADANI Economy Framework.
So, we want to make EV ownership accessible to all, not just the M40 or the T20, but also for the B40, through targeted subsidies and financial assistance.
We hope that we can ramp up efforts to expand and enhance our EV charging infrastructure, ensuring a seamless transition for all Malaysians.” – Tengku Zafrul Tengku Abdul Aziz
As the speech took place at a Tesla event, it is easy to assume that the said EV incentives are meant for electric cars. However, that might not be the case given what the minister has said regarding the subject previously.
During the launch of Yinson GreenTech’s rydeEV Experience Centre in Petaling Jaya, Tengku Zafrul said that Indonesia is the only country in this region that has introduced subsidies for electric motorcycles. He then further said that such an incentive is a good idea which should be included in Budget 2024.
At the moment, fully imported EVs are exempted from import and excise duties as well as road tax until the end of 2025. However, they are subjected to the minimum price requirements set by the Ministry of Investment, Trade, and Industry (MITI) which are RM100,000 for electric cars and RM12,000 for electric motorcycles.
So, how much subsidies and financial assistance that the government or the industry can provide to help offset the price cap and spur the adoption of EVs in the country? Well, guess we have to wait until the tabling of Budget 2024 to know the answer.
