The government is considering imposing a charge on electric vehicle (EV) sales to help fund the development of more public charging stations in Malaysia,
This was announced by Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said during question time in the Dewan Negara today.
Johari said the proposal is currently being discussed as the government looks for a sustainable mechanism to expand Malaysia’s EV charging infrastructure.
EV charging network remains limited
Johari explained that Malaysia’s internal combustion engine (ICE) vehicle ecosystem was successfully developed in part due to the availability of petrol stations nationwide.
Today, we have about 3,500 petrol stations. Each station has multiple fuel nozzles, around eight to 12.”
He noted that refuelling a conventional vehicle only takes around five minutes, but EV charging presents a different challenge, especially for Malaysians living in high-rise buildings.
While owners of landed properties may be able to install home AC chargers, many condominium and PPR residents do not have the same option due to limitations in existing building infrastructure.
“Even if you want to install a charger at your parking bay in an apartment, it may not be allowed because our high-rise residential developments were not designed with EV charging facilities as a requirement,” he added.
As a result, many EV owners will have to depend on public charging facilities.
Public chargers needed as many can’t charge at home
Johari compared the current EV charging network with Malaysia’s petrol station ecosystem, highlighting the significant gap.
“If we take 3,500 petrol stations with an average of 10 nozzles, that gives us around 35,000 places for people to refuel. But for EV public chargers, we do not have that kind of availability.”
Johari added that the limited charging infrastructure is one reason why current EV adoption is mainly among second-car owners and those who primarily drive within cities.
“Long-distance travel is still a challenge because you still need to find somewhere to charge,” he said.
Govt wants EV players to build local ecosystem
Johari said Malaysia’s EV adoption journey began with the government providing four years of incentives between 2022 and 2025, during which EV players were exempted from import duty, excise duty and sales tax.
According to him, the government had forgone around RM3.3 billion in tax revenue during this period to encourage more EV companies to enter Malaysia and develop the industry.
However, he said the government expects these companies to invest in building the wider EV ecosystem, particularly public charging infrastructure.
Johari added that foreign EV manufacturers should also contribute to Malaysia’s automotive supply chain by creating local opportunities, transferring technology and working with domestic companies.
Govt exploring new mechanism to fund charging infrastructure
Johari shared that he had discussed the matter with China’s trade minister, who explained that China had invested billions of dollars to develop its nationwide public charging network.
However, if we ask the government to spend billions to build chargers, where will the money come from? We need to find a mechanism.
“If we expect car sellers to build it, they have not done so. We need to find another way.”
One proposal being considered is to impose a charge on every EV sold in Malaysia, with the funds channelled into a dedicated fund to develop public charging infrastructure.
EVs are the future, but infrastructure must keep up
Johari stressed that EVs and hybrid vehicles remain the future of transportation, but the necessary infrastructure must be in place before wider adoption can happen.
He said the government wants Malaysians to have confidence when switching to EVs, regardless of whether they live in landed homes, condominiums or public housing.
“When people buy an EV, they think it is good because they do not need petrol. But when they return home to a PPR or apartment and cannot charge their vehicle, the question becomes: where do they charge?” he said.
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