DESPITE offering one of the region’s most generous tax holidays for electric vehicles (EVs), Malaysia has yet to see the mass-market explosion enjoyed by its Asean neighbours, particularly Thailand and Indonesia. With the tax exemption for completely built-up (CBU) imported EVs set to expire on Dec 31, 2025, Malaysia faces a critical juncture. While the tax holiday successfully stimulated initial interest in electric vehicles, several structural barriers to mass adoption of battery electric vehicles remain unaddressed. If Malaysia wants to achieve the goals stated in the National Energy Transition Roadmap, the country must devote more thought to a long-term policy framework focused on production and infrastructure.
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