Oil Price Surge, Tax Incentives To Accelerate Malaysia's EV Transition -- Expert

By Engku Shariful Azni Engku Ab Latif

PETALING JAYA, April 17 (Bernama) -- Rising oil prices linked to the West Asia crisis, coupled with the exemption tax implementation on electric vehicles (EVs) by the government are expected to prompt more people to transition to EVs, an expert said.

MotaAuto.com editor Chips Yap said Malaysia have benefitted from the aggressive rollout of charging infrastructure over the past three years, which has increased station availability and reinforced confidence in EV ownership. 

“So, if they have the confidence to own an EV, that is very good for the industry and the government will be happy to see that happening.

“And of course, the oil prices have kept going up, everybody is feeling the pressure that it's very expensive to use the internal combustion engine (ICE) car, " he told Bernama after the book launch of the Malaysia Car of the Year 2025 here today. 

In addition, Yap said the government has effectively driven EV sales growth by introducing tax exemptions for EVs. 

He added that a number of manufacturers have embraced the initiative, resulting in locally assembled EVs in Malaysia that help keep prices affordable.

"This trend will continue at least for another two years where we also have affordable EVs. 

"And I think that will help the government to achieve its aim of getting more Malaysians to buy EVs and achieved net-zero greenhouse gas emissions by 2050," he said. 

Today, Mobility Media Sdn Bhd unveiled the Malaysia Car of the Year Annual Car Buyers’ Guide, that served as a guide for car buyers. 

Yap, who has more than 40 years of writing experience in the automotive industry, said the book compiles articles written by 12 judges from diverse backgrounds, spanning ages from the mid-20s to 70s, on the automotive market environment in 2025.

-- BERNAMA