While the government has not yet outlined plans to push its electric vehicle agenda for the country, it is expected to do so in the near future. The means to address the topic will come from a specific policy for EVs as part of the upcoming revision of the National Automotive Policy (NAP 2020).
Last month, Malaysia Automotive, Robotics and IoT Institute (MARii) CEO Datuk Madani Sahari said the tweaked policy, specifically for the EV segment, would contain revisions that would jump start the road to electrification in Malaysia and enable the country to attract investment in the particular field.
He reiterated this during the MyKar electric vehicle project presentation held at the Sepang International Circuit two days ago. “The government, through MITI, is finalising the last phase of the new policy on EVs. It is not a new thing, it is just a very specific policy on EVs in Malaysia, in how are going to deploy EVs in a more robust fashion,” he said.
He explained that the revisions would address the shortcomings of that drafted in NAP 2020. “In NAP 2020 there was already mention of incentives for EVs, but we feel that the incentives were not that fleshed out, and we have discussed with some stakeholders matters pertaining to new incentives. These new incentives are quite comprehensive in the sense that they touch on everything, from OEM vehicle manufacturers and the vendor community to infrastructure,” he explained.
“We are already in talks with Tenaga Nasional (TNB) about the installation of charging stations, and we are also in talks about tariffs with regards to these. Other projects are also being discussed, some based on sharing, some on leasing,” he said.
“Also, for consumers, discussions are related as to what incentives that can be given to them, not just from buying a car but installing a charger at home, and even the upgrading of wiring from single phase to three phase, which you will need if charging at home,” he added.
The policy is also proposing the allowance for foreign automakers to bring in a number of completely built-up (CBU) units with the absence of tariffs, the number of which will be determined based on the value of investments coming in. “While we all understand CKD is eventually the way to go, the government is looking at the possibility of bringing in CBU units (under these conditions) so that we can quickly introduce EVs into the country,” he said.
Of note is the plan to make them competitively priced, at least in the initial stages. Speaking on the sidelines of the event, he told paultan.org that the revised policy that has been drafted proposes not just providing these new EVs with zero excise and import duties (as previously reported), but also offering them full sales tax exemption and zero road tax.
If that sounds gobsmacking, it is, but it is also worth reminding that the excise duty for fully-imported EVs is currently set at a low 10%, regardless of brand. Nonetheless, there is still bound to be a tax shortfall as a result of such a move.
We ventured that the hardest part would be convincing the government to overlook the loss of revenue as a necessary sacrifice to achieve the intended aim of making a quick breakthrough. Madani agreed that it was a challenge, but said that the number of vehicles would not be high, and the idea is to look at returns over the long term.
“Of course there would be a shortfall of revenue in the near future (with such a plan). We might lose RM100 million (from the absence of any tax/duty collection) in the short term, but we project that we stand to gain RM320 million down the road once electrification takes off (and investment flows in),” he said, adding that the policy had been sent on to the Cabinet, where the points will be discussed.
Madani said it is hoped that all this will add up to provide the kick needed “to make Malaysia at least one of the key countries in the region where EVs will thrive in the future.” Given that the likes of Indonesia and Thailand have surged ahead in terms of planned developments and investment, a well-defined, agressive policy cannot come soon enough. The question is, will it happen?
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Proposal another way of saying seriously considering.
I would prefer if the excise duties is not zero, but to be put in a special account and be fully reimbursable for taxes when they actually have done their investments in Malaysia.
Many times they promised big numbers (in billions) but changed their minds later after they have taken in all the incentives.
Total overhaul of Car AP approved permit, excise duties, roadtax and car price calculation & Old car scrapping.
For the investments incentives in Malaysia, they invested 1st then reimbursement.
Limited units means the rich and powerful will get first. When it comes to regular Rakyat’s turn, applicable taxes will need to also include the first batch to make up for the losses.
Kesian Malaysia. Buat pun salah xbuat pun salah. No wonder we going nowhere. #ApasarahanMsia
Syabas Datuk Madani! Indonesia and Thailand might have surged way ahead, but remember The Tortoise and the Hare story. Malaysia will reach the finish line, first! Sapott Datuk Madani!!
A decade ago, this story did happed between Malaysia and neibogher country. However this round the cast is switch.
A decade ago we have a strong, stable, long serving govt that knows where we heading. However this round the cast is switch.
Good, it’s the beginning of end for the o&g. Go!Go!Go! EVs.
Lol this is basically the same policy that PM Najib intro 10 years ago
https://paultan.org/2010/10/15/hybrid-car-tax-exemption-to-be-extended-to-end-of-2011/
Might as well bring him back as PM. #NajibPM8
Madani ciplak idea bossku. Huhuhu #moodinPM
If this is true, then this is fantastic news. The goal of Malaysia is not to be like Indonesia or Thailand – where companies are building EVs solely due to exploit the cheap abundant labor and free for all regulations. Malaysia’s end goal is to be a high income developed nation with its relatively small and well off population (not to say Indonesia and Thailand aren’t wanting to be developed, they certainly do but these countries are at different stages still).
Anyways … RM160K Tesla Model 3 coming soon?
Once ringgit equals to rupiah, everyone is high income developed millionaire nation.
Jepunis no complain why should we right?
highly unlikely, as tesla wont be investing in malaysia for even a CKD for small numbers without any supporting industry which they can get advantage of in the manufacturing. however, other convention car maker like Voltswagen, Benz, Renault,and some china company.. volvo could be as well if ckd.., but we can forget tesla
Still just a proposal only which dated back since last few years. Real implementation? Wait another 10 years after our neighboring countries (ID,Thai)exported EV cars and its spare parts into Malaysia while we are still manufacturing ICE cars.
Who cares if we are just a user? Look at all those whacking Malaysia own EV effort, might as well don’t do.
(https://paultan.org/2021/03/31/building-a-malaysian-electric-car-for-under-rm50k-ev-innovations-shows-how-its-possible-with-the-mykar/)
April Fools
No hydrogen or fuel cell incentives? EV taking quite some time to charge and current tariffs cost double/triple compared to the fossil fuel and hydrogen powered vehicles. Don’t just follow neighboring countries but follow the blueprint for fuel cell industries in Malaysia .
Newer batteries need shortened charging time coming on line soon.
Cheap Porsche Taycan here we come.
The key word is “limited CBU unit”. Its not policy, that how kayangan people buying ele tric car cheap.
So rich people get the benefit. Good. People who need to buy an Axia to work and ferry their family has to pay tax while orang kaya buying RM300k cars does not.
Buying a 300k car does not make you rich
Of course, buying a 300k car makes you poorer 300k.
Rakyat are so used to the “Govt policies” all these while. All these syiok-sendiri talks, lots of hot air will………soon u-turn.
Macam biasa end of the day. Nothing to see. Move along.
awlays 1 step behind others.
too bad the big EV manufacturers already looking at indonesia or thailand.
same issue with cabotage. Google Facebook decide to just link the underwater cable direct to singapore instead of malaysia.
becos singapore is small country easy to manage.
most of the EV car is expansive. so this will benefit more to the richer people where they can buy car without tax.
Do not know of others, but this looks like the best case proposal/scenario which too me will never happen
Tesla Model 3 – $39,190 – RM162344.58
Tesla Model S – $70,620 – RM292543.35
Tesla Model Y – $43,190 – RM178914.58
Tesla Model X – $81,190 – RM336329.58
2nd April 2021.
Direct conversion. USD/MYR
dont forget the present cekik-darah tax on automobiles, etc…..
Anyway, do you think the Malaysia Govt willing to forgo the lucrative taxes?
After 2-3 years we will see cheaper secondhand hybrid cars in the used car market…
Why is this dude still around? “tweak NAP 2020”? How shallow can this Madani dude be? A disgrace to this nation.
One road map after another. Ha Ha
Someone should start selling Tesla
China started its EV road map a decade ago. And we are forever playing the catchup game. Always for a few tax Ringgit, we kill the goose that lay the golden egg.
After 2-3 years this policy is implemented (if it ever happen), U-Turn and everything back to normal. Those who bought the EV will get nice good kick between their legs, the value of their EV will sink like a stone dropped into Pacific ocean.
Yes, I know it all too well as one of the early adopters to Hybrid when the same type of “policy” happened then “un-happened”.
Car manufacturer like Toyota/Lexus will also take wait and see approach since they wasted millions on tooling/training for the service centers to support Hybrid. They had to discontinued majority of their Hybrid model because there is no more demand due to Hybrid price shoot all way up and customers goes back to conventional petrol model.
Someone pls bring in WuLing miniEV…