Observers warn Malaysia’s appeal as a manufacturing base could weaken amid regional competition for EV investment
3-MIN READ3-MINIman Muttaqin YusofPublished: 5:30pm, 5 Aug 2026Updated: 5:31pm, 5 Aug 2026Malaysia is considering a levy on electric vehicles (EVs) to fund charging infrastructure, even as export and pricing conditions on high-volume foreign assembly projects have left Chinese giant BYD’s planned 1.3 billion ringgit (US$318 million) factory in limbo.Economists and industry experts warn the two policy moves could raise ownership costs while weakening Malaysia’s appeal as a manufacturing base at a time when regional rivals are competing for EV investment.
EV sales more than doubled to 30,848 units in 2025, according to the Malaysian Automotive Association, while government data showed cumulative electric-car registrations had reached 115,349 by the end of June 2026.
Malaysia’s Ministry of Investment, Trade and Industry (Miti) was studying a levy on every EV sold to expand the public charging network, minister Johari Abdul Ghani told the upper house of parliament on Tuesday.
Johari said Putrajaya had forgone about 3.3 billion ringgit in tax revenue through exemptions for fully imported EVs between 2022 and 2025, but private investment in chargers had failed to keep pace.
Malaysia had installed 6,416 public charging points by May 31, including 2,143 fast chargers, according to a written parliamentary reply from Miti in July – still below an earlier target of 10,000 by the end of 2025.
