Govt Looking To Incentivise EV Truck To Reduce Diesel Subsidy Costs

KUALA LUMPUR, May 14 (Bernama) -- The government is looking at ways to incentivise transport operators to adopt electric vehicle (EV) trucks as part of long-term efforts to reduce the country’s diesel subsidy burden.

Transport Minister Anthony Loke said the ministry will present its views at the upcoming EV Task Force meeting next week to encourage discussions on possible incentives for EV truck adoption.

“This is something which I think is necessary, not just because we have to achieve our net-zero target by 2050, but also in terms of fuel efficiency and costs to the government.

“It is better for the government to incentivise operators to operate EV trucks because our diesel subsidy bill is especially high right now,” he said when officiating the Malaysia Commercial Vehicle Expo (MCVE) 2026 here today.

However, Loke said the high cost of EV trucks remains one of the biggest barriers preventing wider adoption among transport operators.

“EV trucks are two to three times more expensive than the typical diesel trucks. That is why we are discussing how to look at incentives in terms of tax exemptions and so forth,” he told reporters during the MCVE press conference.

Apart from costs, Loke said charging infrastructure also remains a major challenge, particularly for long-distance interstate operations.

“If you are talking about trucks operating within Klang Valley, perhaps that is not a massive problem. But if you are talking about cross-state operations, that will be a big challenge.

“For example, if you are talking about travelling from Kedah all the way to Johor, you are talking about 800-900 kilometres (km). A typical EV range is only about 300-400 km. So in between, you need charging points and charging facilities to recharge,” he said, adding that all those are part of the ecosystem needed before EV adoption can grow further.

Loke said the government needs to reduce the barriers and hurdles to encourage wider EV adoption.

“We are not taking a hard approach to get the industry to adopt EVs. Rather, we are taking more of a carrot approach to encourage and incentivise them to look at it,” he said.

Meanwhile, the Transport Ministry is also studying possible frameworks for autonomous vehicle (AV) testing in Malaysia, including identifying suitable testbeds and sandbox environments.

“The dilemma we have is that as much as we want this testing on the roads, without a legal framework, it is something very risky because if there is an accident, the question becomes who will be responsible and so forth. 

“So this is something where we are trying to be pragmatic and practical because we know this kind of testing needs to happen before the entire thing can be developed,” he said.

-- BERNAMA