The government says it will ensure that the country’s electricity supply can meet all users’ needs, including the expected increase that will come about with the progressive switch to electric vehicles (EVs), Bernama reports.

According to minister of international trade and industry Datuk Seri Azmin Ali, addressing these requirements needed to be given serious attention, and that the Economic Planning Unit (EPU) is in the midst of formulating a national energy policy to make sure these needs are met.

“The transition to energy efficient vehicles (EEVs) and EV will have to be done carefully to ensure that the nation’s electricity supply is sufficient,” he said in Parliament yesterday. He was responding to a supplementary question from Nik Mohamad Abduh Nik Abdul Aziz (PAS-Bachok).

In reply to a supplementary question from Choong Shiau Yoon (Independent-Tebrau) on potential joint-venture partners to develop EVs in Malaysia, Azmin said the success of developing the EV industry needed support not only from government policies but also the private sector in terms of infrastructure development.

In a bid to address this, he said that the Malaysian Green Technology and Climate Change Centre is working together with the private sector to look into the development of all supporting infrastructure, including charging stations.

Activity on the EV front looks set to grow in the coming future, given the recent announcement made during Budget 2022, which outlined proposed incentives to support the development of the local EV industry. These include allowing EVs be completely exempt from import duty, excise duty and sales tax beginning from January next year.

The proposal involves 100% duty exemption for CBU electric cars up to December 31, 2023, and 100% duty exemption for CKD electric cars up to December 2025. Clearly the plan is to kickstart the industry with CBU cars and hopefully local assembly activities can begin from 2024 onwards.

Electric vehicles will also benefit from a road tax exemption of up to 100% under the proposal, while an income tax relief of up to RM2,500 will be provided on the cost of purchasing and installing, renting or taking up hire purchase facilities, as well as subscription payments of EV charging facilities.