Malaysia to offer tax and duty incentives to promote EV use and investments, policy to be clear – Azmin

Malaysia to offer tax and duty incentives to promote EV use and investments, policy to be clear – Azmin

Earlier this year, it was reported that Malaysia’s new electric vehicle (EV) policy would offer a “handsome level” of tax incentives, including fixed incentives that will benefit both the automotive industry and users as well as a host of other benefits for EV adopters.

Among these benefits are a previously mentioned full road tax exemption, but plans for income tax relief for both the purchase of EVs as well as for the installation of EV chargers are also being looked at, The Edge reports. According to international trade and industry minister Datuk Seri Azmin Ali, these are among the incentives that are being studied to encourage EV ownership and the development of related infrastructure in the country.

He said the government would look at various angles in formulating the new policy, the general direction of which was again highlighted in the 12th Malaysia Plan (RMK-12). “Malaysia will take the ‘compare and offer’ approach by forming a comprehensive, clear and consistent policy to entice EV use, while our regional competitors focus on incentives to OEMs (original equipment manufacturers),” he said at the Dewan Rakyat earlier today.

Malaysia to offer tax and duty incentives to promote EV use and investments, policy to be clear – Azmin

He said the update to the National Automotive Policy (NAP 2020) will underline specific initiatives to strengthen the EV ecosystem, such as the manufacturing of critical parts, standard setting, and encouraging research and development, commercialisation and innovation to develop local technologies.

Incentives will come in the form of direct and indirect tax relief for manufacturing of EVs, parts manufacturing and ecosystem development such as charging infrastructure, and incentives for OEMs include pioneer status, an investment tax allowance as well as import and excise duty exemption for EVs.

This is a reiteration of that stated last month, when Azmin said that that plans were being drawn for an incentive package to attract investment in addition to strengthening existing incentives for the production of EV vehicles and components in the country.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Further benefit the rich.. yay

    Like or Dislike: Thumb up 12 Thumb down 9
    • Amran on Oct 05, 2021 at 4:47 pm

      Those who pushing for EV and condemning the Gomen for not fast moving into this tech are actually greedy rich pipul intending to deprive the poor of accessible transport options.

      Like or Dislike: Thumb up 20 Thumb down 6
    • digidigi on Oct 05, 2021 at 6:03 pm

      they need to start from the premium segment as the margin is higher than only have the incentive to build infra, for someone buying 100k x50 to afford 50k battery cost will be a disaster

      Like or Dislike: Thumb up 5 Thumb down 0
    • You buy ev or non-ev also benefits the rich like you eat or not also will die.

      Like or Dislike: Thumb up 3 Thumb down 0
    • Ganeson on Oct 14, 2021 at 10:56 am

      Benefit the environment. You want your cucu to breathe clean air on Mars or on earth?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Celup King on Oct 05, 2021 at 4:05 pm

    EV only benefits the rich. Better to spend on improving public transports.

    Like or Dislike: Thumb up 21 Thumb down 11
    • kereta_lembu on Oct 05, 2021 at 4:57 pm

      I understand what you mean, but eventually we have to catch up with technology. I’m sure internet was expensive when we first had it and now you can get it cheaper and faster. Probably public busses will be EVs as well in the future.

      For it to benefit the middle or low income people, we normally have to accept that it will reach and benefit the rich people first. If they also don’t spend or push for this, then we’ll have to wait until fossil cars become obsolete before we can afford this new tech.

      Like or Dislike: Thumb up 23 Thumb down 8
      • Spin Too Much on Oct 05, 2021 at 6:42 pm

        Internet is still a luxury to those who have bad access to clean running water, good electricity connections, and food on the table. We should tackle the pertinent issues and not issues only related to the rich people.

        Like or Dislike: Thumb up 12 Thumb down 11
        • kereta_lembu on Oct 05, 2021 at 8:14 pm

          So life without Internet is better? I’m not saying leave the poor behind. They need help but we also need advancement

          Like or Dislike: Thumb up 7 Thumb down 4
          • Aura89 on Oct 06, 2021 at 12:19 am

            No point advancing when we leave people behind. “No one gets left behind” according to Obama.

            Like or Dislike: Thumb up 4 Thumb down 2
          • History Bender on Oct 06, 2021 at 3:01 am

            Stupid question. Man had lived most their history without internet but civilizations fall without access to water supply and enough food for everyone. Which is more important?

            Like or Dislike: Thumb up 6 Thumb down 1
          • Troll Hunter on Oct 06, 2021 at 8:17 am

            Believe me if I tell you you can live without internet, but you cannot live without food & water, really trust me.

            Like or Dislike: Thumb up 6 Thumb down 1
      • Silthice on Oct 05, 2021 at 9:58 pm

        Actually Fuel Cell Electric Vehicles are the future and BEV is just hype from Tesla and Elon Musk.

        Like or Dislike: Thumb up 3 Thumb down 2
  • kereta_lembu on Oct 05, 2021 at 4:52 pm

    Let’s face it, EVs are the future. Many countries are moving towards that direction and slowly phasing out fossil fuel cars. Like it or not, when manufacturers go towards that direction, we have to change accordingly.

    Yes, it is not popular in Malaysia due to limited infrastructures and expensive maintenance/replacement costs but again, once it is widely accepted, widely implemented, the price will also go down accordingly.

    So, for the government to introduce tax breaks and other incentives to push this through is needed. People are saying that the rich will benefit from the tax break, true…but eventually it will probably benefit the rest of us when there is enough infrastructures in place.

    Technology like time waits for no one. If we want to wait until everyone here can afford to own an EV, then we’ll be left light years behind other progressing countries.

    Once this technology and concept is accepted by the masses, replacement batteries and parts become affordable, people will not complain anymore and start to reap the benefits.

    Like or Dislike: Thumb up 28 Thumb down 5
  • Carolyn Khaw on Oct 05, 2021 at 5:05 pm

    So the EV’s plug charger has to be plugged in from behind?

    Like or Dislike: Thumb up 7 Thumb down 0
  • Semi-Value (Member) on Oct 05, 2021 at 5:09 pm

    yeay, boleh beli taycan murah sikit

    Like or Dislike: Thumb up 3 Thumb down 3
  • Truth on Oct 05, 2021 at 5:10 pm

    EV cars are craps

    Like or Dislike: Thumb up 8 Thumb down 10
  • pika-you on Oct 05, 2021 at 5:11 pm

    Talking cost nothing, don’t panic everything is under my
    flower plan.

    Like or Dislike: Thumb up 1 Thumb down 5
  • @SnakeBabu on Oct 05, 2021 at 5:25 pm

    ..thy shall repeat this statement every 2-3 years without doing anything

    Like or Dislike: Thumb up 19 Thumb down 5
    • Spin Too Much on Oct 05, 2021 at 6:43 pm

      We prefer they not do anything rather than spend taxpayers monies to satisfy rich people wants.

      Like or Dislike: Thumb up 12 Thumb down 4
  • Bingo on Oct 05, 2021 at 6:27 pm

    As long as the country you are in generates electricity predominantly from coal, the electric cars in this country are essentially coal-powered cars. Their carbon emissions can be worse than petrol- and diesel-powered cars.

    Like or Dislike: Thumb up 13 Thumb down 5
    • Haidi on Oct 05, 2021 at 9:11 pm

      Don’t forget about the battery. If we are all in to EV, we are encouraging battery production, mining lithium and nickel. Those do more harm to the mother earth and the society then burning dinosaurs’ juice.

      We, the whole world, should focusing on making the internal combustion engine more efficient, or replacing the dinosaurs’ juice with alternative fuel. There are future-minded companies are doing that now, they need more resources and support.

      Like or Dislike: Thumb up 8 Thumb down 3
  • kereta_roda_lapan on Oct 05, 2021 at 7:32 pm

    tax breaks? what about charging stations with supercharging capabilities? do you know how long it takes to charge an EV with normal rate? 1 to 2 days. Good luck in using one.

    Like or Dislike: Thumb up 8 Thumb down 3
  • Bieight on Oct 05, 2021 at 7:49 pm

    Elon musk will be very happy

    Like or Dislike: Thumb up 1 Thumb down 1
  • Yes even though internet is still luxury to those who are unfortunate but look what the internet have done to our Country economy.

    Like or Dislike: Thumb up 1 Thumb down 1
  • WokWithYan on Oct 05, 2021 at 9:21 pm

    Actually this is better than the system offered in other parts of the region. In other Asean countries the OEMs benefit from selling the EVs to the end user locally, but the local industries dont benefit.

    In Malaysia, the buyers will benefit from buying EVs. Sellers dont benefit unless they manufacture EVs, parts and technology in Malaysia. Which is good as it will encourage OEMs to manufacture their EVs in Malaysia rather than CBU it from other countries. If transfer of technology is effective, local companies can benefit if they are involved in the manufacturing process.

    However, they did not mention how they will ‘shield’ Proton and Perodua, which effectively wont benefit from this programme at all. Im sure they will come up with some protectionist policy to protect the local car companies. Lets wait and see …

    Like or Dislike: Thumb up 12 Thumb down 0
    • KYspeaks on Oct 07, 2021 at 9:50 am

      Geely owns a huge part of Proton and also owns Volvo which spun off Polestar which has BEV. In another word Geely can bring BEV under Proton brand pretty easily if there’s the desire.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Even though little late but, it’s better since we need to encourage alternative to fossil fuel vehicles, kudos minister and ministry

    Make it ev prices more reasonable unlike fossil fuel cars’ pricing

    Like or Dislike: Thumb up 3 Thumb down 1
  • Mike Tee on Oct 05, 2021 at 11:03 pm

    Wuling HongGuan Mini EV costs $4,000 (~RM17k) and has a claimed range of >300k. If favourable tax and duty is applied it CAN be the cheapest car in the country.

    Yes I know some of you need to travel from Johor to Perlis and back twice a day. EVs are not for you.

    Like or Dislike: Thumb up 1 Thumb down 0
    • KYspeaks on Oct 07, 2021 at 9:51 am

      The range is more like 120km but I do get your point. In fact 120km is more than enough for city driving.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Hopefully not just cars. I rode an electric scooter to work and having it slightly cheaper should be pretty good.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Kelvin on Oct 06, 2021 at 9:07 am

    I’m against full road tax exemption. Government should stop these kinds of extreme knee jerk policies.

    Instead, revamp the road tax calculation system to better reflect road and fuel usage. Reward those cars with better safety and fewer emissions.

    Stop calculating based on engine displacement or electric motor power.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Sparcov on Oct 06, 2021 at 9:16 am

    Like it or not, future is the EV. It is just a matter of time for a full transition to EV car.

    An expensive and luxury now may not be the same in future. Historical technology advancement prove the transition process as success.

    Such as:-
    1. Smartphone expensive in the past as a norm today.
    2. Turbo charged Car high fuel consumption became fuel efficient car.

    Economic of scale will drive the cost reduction. It will take a long process for the the world to adapt it.

    We unable to believe EV car now due to no repairing history of it. What we can benchmark is hybrid car.

    Record shows that hybrid car are low in 2nd market, high repair cost, battery replacement and the benefit gain from the fuel efficiency unable to compensate with the problem we face after 5 years.

    For many taking a 9 years loan car, they know by year 5 if we want to sell the car, we have to top up for the loan differences before we can dispose off the car. This is simply not practical for a commoner to folk out that amount of cash for the old car and additional cash to trade for a new car.

    Until then, EV still a luxury and good to have for now.
    Environmental, carbon foot print come at cost.

    Like or Dislike: Thumb up 2 Thumb down 2
    • Environment on Oct 06, 2021 at 4:21 pm

      Hybrid is also part for reduction carbon emissions vehicles. Actually depends on battery replacement cost. Some cars like Toyota, Perodua or Lexus sell cheaper battery replacement cost than continental cars, can be also said for EV. Actually hybrid vehicles are good enough cause petrol vehicles are part of petrol electric and both EV and hybrid produce similar amounts of carbon dioxide emissions during vehicle production,

      Like or Dislike: Thumb up 5 Thumb down 2
  • Choong Khim Fen on Oct 06, 2021 at 10:24 am

    I believe the way forward is not just pure EV. What we should aim is low emission standard, and moving from ICE engine as main propulsion for car to using electric motor as main propulsion for car. Hence lowering emission, at the same time allow our infrastructure to grow. E power by Nissan or Honda IMMD drive system should be consider rather than pure EV car for masses. Pure EV car can be start with those small micro car that does not consume a lot of electricity and much cheaper in ownership cost for city uses.

    Like or Dislike: Thumb up 2 Thumb down 0
    • Environment on Oct 06, 2021 at 4:28 pm

      Agree. Hybrid is good enough rather than EV since both EV and hybrid produced similar amounts of carbon emission during vehicle production and also part of petrol electric like Toyota, Nissan and Honda. Hybrid is also more effective as EV

      Like or Dislike: Thumb up 3 Thumb down 0
  • Gov don’t want to allow us to convert usable and still solid existing cars into electric … but they would rather make people buy an entirely new car that is built with new components and a bunch of single-use-plastic materials … we can reduce waste products if we were to convert existing cars into electric

    Like or Dislike: Thumb up 1 Thumb down 0
 

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