Government stands firm on new CBU EV import regulations, no reversal plans
Paul Tan, 16 Jul '26
The Malaysian government has no plans to reverse its recently announced regulations governing the import of fully imported (CBU) electric vehicles (EVs), which came into effect on July 1st, 2026.
This was stated in a parliamentary reply by the Ministry of Investment, Trade and Industry (MITI) to Pang Hok Liong (PH-Labis), who questioned whether the regulations would be withdrawn, arguing that they contradict the government's policy of accelerating EV adoption among the public and limiting consumers' access to affordable EVs priced below MYR 100,000 or MYR 150,000 (US$ 24,550-36,830).
In its response, the ministry stated that the measure is consistent with the core principles of the National Automotive Policy (NAP), which seeks to regulate the influx of EV models in order to complement market offerings while supporting the development of the domestic automotive industry.
"The government consistently adopts a balanced approach between safeguarding consumer interests and developing the local automotive industry. Consumers have the right to access affordable EVs, while the nation requires an automotive industry to create employment opportunities, develop local vendors, attract investments and support the domestic supply chain," the ministry stated.
Under the new policy, all CBU EVs are subject to two principal conditions: a minimum declared cost, insurance and freight (CIF) value of MYR 200,000 and a minimum power output of 180kW, equivalent to 245 PS or 244 PS.
Addressing concerns regarding EV adoption, the ministry stated that the government remains committed to promoting the transition to electric mobility.
It highlighted the continuation of a 100% exemption on import duty, excise duty and sales tax for locally assembled (CKD) EVs until December 31st, 2027.
According to the ministry, this measure enables manufacturers to offer EV models at lower prices while encouraging local assembly activities, technology transfer and the development of local vendors. At the same time, the government is expanding the domestic charging network to ensure that sufficient infrastructure is available to support EV ownership.
The ministry concluded its response by stating that the government's objective is not merely to increase EV sales in the short term, but also to develop an EV ecosystem.
