KUALA LUMPUR (Feb 28): The Ministry of Investment, Trade, and Industry said on Wednesday it has proposed a one-off subsidy to boost electric vehicle (EV) ownership and encourage the shift from conventional internal-combustion engines.

The proposal had already been submitted to the Ministry of Finance under the national EV steering committee meeting, Deputy Minister of Investment, Trade, and Industry Liew Chin Tong said in Dewan Rakyat. The proposed subsidy could contribute toward reducing fuel subsidies in the longer-term, he noted.

“This proposal is currently under consideration by the Finance Ministry,” Liew said.

Malaysia already has existing incentives to promote EV ownership, including exemptions on excise duty, import duty, and road tax, as well as income tax relief for charging facility expenses.

Both national car manufacturers Proton and Perodua have also pledged to introduce their own EVs by 2025.

In the meantime, the government will prioritise expansion of the network of fast chargers in the country amid a 400% surge in electric vehicle sales, he said in response to a question from Datuk Iskandar Dzulkarnain Abdul Khalid (Perikatan Nasional-Kuala Kangsar).

Sales volume of new battery electric vehicles reached 13,257 units in 2023, compared to 3,127 units in 2022, according to Liew.

Recognising the need to address "range anxiety" for EV users, particularly during long-distance travel, Liew emphasised that the government is prioritising the installation of more direct current (DC) fast chargers.

Under the Low Carbon Mobility Blueprint, the government aims to install 10,000 EV chargers by 2025, consisting of 9,000 alternating current (AC) chargers and 1,000 DC chargers.

As of December 31, 2023, Liew said that 2,020 chargers have been deployed across 750 locations nationwide, with 1,591 units being AC chargers, and the remaining 429 units being DC chargers.

Liew said that his ministry — in collaboration with agencies such as the Malaysia Automotive, Robotics, and Internet of Things Institute and the Malaysian Green Technology and Climate Change Corporation — is conducting a comprehensive review of the targets.

"Proposals to enhance the deployment of DC fast chargers will be presented during the upcoming National Electric Vehicle Steering Committee meeting in the second quarter of 2024,” he said.

For more Parliament stories, click here.