The government will introduce the essential list and localisation incentives to strengthen the domestic automotive supply chain and expand export opportunities to support local vendors, investment, trade and industry (MITI) minister Tengku Datuk Seri Zafrul Abdul Aziz has said, according to a Bernama report. To spur the development of Malaysia’s EV manufacturing ecosystem, he said the existing fully-imported (CBU) tax exemption framework currently scheduled to run until December 31, 2025 is being aligned with a broader push for local assembly operations and parts localisation. Industry players say CBU EV prices could go up 30-100%. “The strategic shift aims to strengthen industrial participation and enhance Malaysia’s competitiveness within the regional supply chain. Our national champions are making strong progress as Perodua’s EV programme is on track, while Proton recently launched the eMas 5, giving a clear signal of our industry’s capability and ambition,” he said at yesterday’s opening of the inaugural Global Automotive Technology Expo (GATE) 2025. Clockwise from top left: Proton’s EV plant in Tanjong Malim, BYD will also build a plant in Tanjong Malim, MG has signed up with EPMB to CKD in Melaka, TQ Wuling (under Tan Chong) will use its own Segambut plant “In fact, Malaysia held the number one vehicle market position in Southeast Asia during the first half of 2025, ahead of its regional peers. Malaysia is ready to capture the opportunities for the future of mobility with a strong semiconductor base, abundant rare earth resources and a mature manufacturing ecosystem,” he added. Tax incentives will remain for locally-assembled (CKD) EVs until the end of 2027, with most mainstream brands already committing to local production, including national carmakers Proton and Perodua. Some foreign makes like Volvo and Mercedes-Benz already make at least some of their EVs here, but a few others such as BYD and Xpeng expect to only start production in the second half of 2026, so expect some price increases at least for several months. Compare prices between different insurer providers to save the most on your car insurance renewal compared to other competing services. Many payment method supported and you can pay with instalment using Grab PayLater or Shopee SPayLater.
